Attachment A-SOO-DEA Independent Financial and Information Technology Management Assessment.pdf

Statement of Objectives (SOO)

Independent Assessment of DEA Financial, Resource, Acquisition and Information Technology Divisions.

1. Purpose

The purpose of this engagement is to conduct an independent, objective review of the Drug Enforcement Administration’s (DEA) financial management, budgeting, contracting and information technology practices to determine where improvements can be made to ensure current processes align with federal financial management standards, acquisition regulations, principles of sound stewardship, and provide the most value to the American taxpayer, as described in multiple Executive Orders from President Trump. The objective is to identify areas of weakness, detect possible deviations from accepted norms, and offer actionable recommendations for long-term improvement. This effort is not intended as an investigation, but as a proactive review that enhances transparency, trust, and effectiveness in the use of taxpayer resources.

2. Background

The DEA is a critical operational agency within the U.S. Department of Justice. It receives annual appropriations to support its law enforcement mission; its Diversion Control operations are funded via Diversion Control Fee Account (DCFA) collections. DEA leadership requires information transparency to make informed resourcing decisions across lines of business to prevent duplication, ensure alignment, and action change.

Areas of concern for review include:

• Inadequate planning, coordination, and visibility into contract obligation and spend across programs, years, and performance objectives, and a reticence to address inefficient past practices.

• Lack of clarity around measures of performance, effectiveness, or return on investment for major initiatives, including technology platforms.

• Persistent perception of year-over-year reduced annual, discretionary budget plans, despite flat or increasing total expenditures and no discernible reinvestment of “savings;” and the role no-year funding plays.

• Internal preprogramming and realignment of funds procedures – deviations from approved fiscal year spend plans, tracking and approval process

• Absence of structured after-action or post-award analysis following significant program failures or non-delivery of outcomes.

• Each system developed for the DEA should have a professional project manager with experience in developing systems previously for other federal agencies, rather than a built-in bias to hire a contractor to staff systems development at the Government’s direction rather than have the contractor propose a solution and then hold the contractor accountable for the success or failure of the system, the deliverables, milestones of the system. It is a governmentwide expectation that the DEA will use Agile software development to plan enhancements to the system on an ongoing basis. Similarly ensure that the Contracting Officer and support staff are well versed in software and systems development.

This review is designed to assess the extent of these issues, if present, and assist the DEA Associate Administrator, Chief Inspector, Chief Financial Officer, Chief of Compliance, and broader leadership team in refining risk-based internal controls and procedures, aligning with leading practices, and strengthening confidence in the agency’s financial governance systems.

3. Objectives

The review shall achieve the following outcomes:

• Baseline Assessment: Establish a comprehensive baseline of current financial management practices, internal controls, and acquisition workflows, to include the role of Divisions and Offices.

• Compliance Review: Evaluate compliance with, and identify any deviations from, DOJ, GSA, OMB, GAO, and FAR standards in the areas of contracting, budget execution, resource management, program oversight, and fund certification.

• ROI & Contract Utility Analysis: Evaluate the value, utility, and mission alignment of current and recent DEA contracts, with emphasis on high-dollar or high-visibility initiatives.

• Program Case Study: Conduct a limited scope, illustrative case study of DEA’s information technology identifying any recent failures and whether DEA captured lessons learned and actioned any substantive changes.

• Workforce & Capacity Review: Assess the number of contracting professionals, and their roles, skills, the organizational structure, and the operational capacity of the offices responsible for financial, resource management, and acquisition functions.

• Recommendations: Provide both immediate opportunities and long-term strategic recommendations to enhance transparency, efficiency, and accountability in financial, resource, and acquisitions management.

4. Key Areas of Review

The scope will include, but not be limited to, the following:

• Budget planning, formulation, and execution across appropriated and fee-funded accounts, agency-wide,

• Use and tracking of payroll resources relative to hiring plan and actioning during year-of-execution any deviation from plan,

• Contract lifecycle management (requirement generation, award, administration, closeout),

• Movement of funds between programs and accounts relative to approved fiscal year spend plans,

• Contract file completeness and documentation,

• After-action reviews and performance tracking for service contracts over $1 million +

• Enterprise risk management, audit readiness, and records availability.

• Assess large scale IT initiatives that did not achieve their intended objective (2020-

2024) o Assess governance, risk management, project controls, vendor oversight, and decision-making processes and resulted practical recommendations.

5. Performance Expectations

The selected contractor shall:

• Work independently of the DEA Chief Financial Officer, DEA Chief Information Officer (CIO), the Financial Management Division staff, Division and Office resource managers, PMs, and CORs,

• Be capable of reviewing both classified and unclassified documentation,

• Adhere to all DOJ/DEA information security, confidentiality, and handling requirements,

• Provide regular progress briefings to designated senior stakeholders,

• Deliver an interim finding report (90 days) and a final report (no later than 180 days).

6. Desired Outcomes

DEA leadership intends for this engagement to result in:

• Greater alignment of financial resource practices with federal standards,

• Identification of high-risk, low-value, or duplicative practices,

• Strengthen confidence in the agency’s internal financial management controls and practices,

• A roadmap to long-term modernization of finance, budget, resource management, acquisition functions, and IT programs,

• A culture of outcomes-based planning and accountability.

7. Deliverables

• Inception Report (within 30 days): Methodology, work plan, and stakeholder engagement strategy,

• Interim Briefing (at 90 days): Key observations, red flags, and early recommendations,

• Final Report (at 180 days or sooner): Comprehensive findings, root cause analysis, and strategic recommendations,

• Post-Engagement Implementation Support (Optional): On-call or embedded support to assist DEA in implementing recommendations.

8. Government Furnished Information and Points of Contact DEA will furnish historical budget data, contracts, policies, and access to key stakeholders, as authorized. A designated senior executive sponsor and contracting officer’s representative (COR) will be appointed upon award.