U.S. General Services Administration Administrator's Semiannual Management Report to the Congress Report No. 48 October 1, 2012 through March 31, 2013 U.S. General Services Administration Dan Tangherlini Acting Administrator Office of Administrative Services Cynthia A. Metzler Chief Administrative Services Officer Management and Oversight Division Ralph L. Boldt Director May 2013 This report is in the public domain. Authorization to reproduce it in whole or in part is granted. While permission to reprint this publication is not necessary, the citation should be: U.S. General Services Administration, Office of Administrative Services, Management and Oversight Division, Administrator's Semiannual Management Report to Congress, No. 48, Washington, DC 20417. To obtain copies of this report: Write to: U.S. General Services Administration, Office of Administrative Services, Management and Oversight Division (H1C), Room 1284, 1275 First Street, NE Washington, DC 20417. E-mail your request to: Ralph.Boldt@gsa.gov Call in your request: (202) 501-3094 Obtain a copy of this report on the Agency's Web site at: Semiannual Report to Congress Table of Contents Synopsis of Audit Activity ........................................................................................................................... 4 Organization of Audit Follow-up Program ................................................................................................ 5 Agency Audit Follow-up Process .......................................................................................................... 5 Senior Agency Official ............................................................................................................................. 5 The Chief Administrative Services Officer ........................................................................................... 5 Heads of Services and Staff Offices and Regional Administrators .................................................. 6 Organization Chart ...................................................................................................................................... 7 Audits with Disallowed Costs ..................................................................................................................... 8 Audits with Better Use Funds ..................................................................................................................... 9 Internal Audits ............................................................................................................................................. 10 Contract Audits ........................................................................................................................................... 11 Glossary of Terms ..................................................................................................................................... 25 Appendix A ................................................................................................................................................. 28 Synopsis of Audit Activity This report covers the semiannual reporting period of October 1, 2012, through March 31, 2013. In accordance with the Inspector General Act of 1978, as amended (The Act), the Acting Administrator of the U.S. General Services Administration (GSA) submits this report to Congress on final actions regarding audit recommendations. The Act requires the Acting Administrator to report directly to the Congress on management decisions and final actions taken on audit recommendations. This report provides a summary of all audits conducted during the reporting period for (1) implementation of the recommendations by GSA management contained in audit reports issued by the Office of Inspector General (OIG) and (2) report of cases where final action has not been taken on an audit one year after the date of the management decision. At the commencement of this semiannual reporting period, there were 130 audit reports pending final action that contained financial recommendations totaling $768,981,129. During the reporting period, the OIG issued a total of 33 audit reports on nationwide GSA programs and operations that required management decisions. Of these 33 audits, 10 of these audits found $2,681,012 in pre-award contracts and internal program spending was incorrectly charged to the Government (known as disallowed costs). There were no post award audits issued during the reporting period. Of the 33 audits, 23 audits recommended that $421,214,883 could be used more efficiently (known as funds to be put to better use) if management took action to implement and complete the OIG recommendations. This information is disclosed within Appendix A of this report. During the six-month period, GSA was able to successfully take final action on a total of 15 audits. These audits represent the recovery of $558,272 in Government funds and the identification of $22,544,458 in potential future savings. As of March 31, 2013, 146 audit reports remained open. There are several audits involving claims under appeal or litigation during this reporting period. Organization of Audit Follow-up Program Agency Audit Follow-up Process GSA has effective systems in place for keeping track of audit recommendations. In addition, GSA senior management is committed to ensure that appropriate corrective action is taken. Agency managers have the responsibility to act upon the auditor's recommendations, with the audit resolution process being supervised by the agency audit follow-up official. The following provides a description of the responsibilities of GSA officials involved in the audit follow-up process: Senior Agency Official The Deputy Administrator is the Senior Agency Official responsible for audit follow-up in the agency. As such, she has overall responsibility for ensuring the adequacy of the agency's follow-up system, monitoring the resolution of audit recommendations, and ensuring the prompt implementation of corrective actions. She also makes final decisions to resolve differences between agency management and the OIG. The Chief Administrative Services Officer The Chief Administrative Services Officer provides administrative direction to the officials in the Office of Administrative Services (OAS) who manage the GSA's Audit Resolution and Follow-up System. Their responsibilities include: Acting as the liaison with the Government Accountability Office (GAO) for the coordination of GAO audits in progress within GSA and for preparation of responses and reports for the signature of the Administrator on GAO recommendations as required by law; Ensuring timely resolution and implementation of internal and external audit recommendations made by the GAO as well as OIG; Overseeing the collection and proper accounting of amounts determined due to the Government as the result of audit-related claims; Analyzing GSA's programs upon request from the Administrator, particularly as related to past or present audit recommendations; and, Maintaining an automated report control system for both internal and external audits that provides an accurate means for tracking and documenting actions taken in implementing audit recommendations. Heads of Services and Staff Offices and Regional Administrators Heads of Services and Staff Offices and Regional Administrators to whom audit recommendations pertain, have primary responsibility for resolving and implementing recommendations promptly. Their responsibilities include: Ensuring controls are implemented to provide timely, accurate, and complete responses to audit reports; Developing, advocating, and documenting agency positions on audit recommendations; Preparing responses to draft and final GAO reports in coordination with OAS; Providing comments on audit decision papers prepared by the OIG to ensure that management's position on unresolved audit recommendations is properly stated. Organization Chart of the Agency Administrator DeputyAdministrator Chief of Staff Chief Administrative Services Officer Federal Acquisition Service Public Buildings Service Office of Inspector General Civilian Board of Contract Appeals Office of Governmentwide Policy Office of Congressional and Intergovernmental Affairs Office of the Chief Financial Officer Office of Emergency Response and Recovery Office of the Chief Information Officer Office of General Counsel Office of the Chief People Officer Office of Civil Rights Office of Citizen Services and Innovative Technologies Office of Small Business Utilization Office of Communications and Marketing National ServicesCentral OfficeNew England Region 1Boston, MANortheast/ Caribbean Region 2New York, NY Mid-Atlantic Region 3Philadelphia, PAGreat Lakes Region 5Chicago, ILGreater Southwest Region 7Fort Worth, TXPacific Rim Region 9San Francisco, CASoutheast Sunbelt Region 4Atlanta, GAThe Heartland Region 6Kansas City, KSRocky Mountain Region 8Denver, CONorthwest/Artic Region 10Auburn, WANational Capital Region 11Washington, DCRegional OfficeAs of 3/31/2013 Audits with Disallowed Costs October 1, 2012 through March 31, 2013 Final action for the six-month period Ending March 31, 2013 Number of Audit Reports Disallowed Costs A. Audit reports for which final action had not been taken by the commencement of the reporting period. 50 $58,730,031 B. Audit reports on which management decisions were made during the reporting period. C. Audit reports on which final action was taken during the reporting period. 10 $2,681,012 8 $558,272 (i) the dollar value of disallowed costs $559,920 - collections................. $559,920 - offset ................... $0 - property in lieu of $0 cash... - surplus ............... $47,279 - other ............... $0 (ii) the dollar value of disallowed costs that were written off by management. D. Audit reports for which no final action has been taken by the end of the reporting period. $45,631 52 $60,852,771 Audits with Better Use Funds October 1, 2012 through March 31, 2013 Final action for the six-month Ending March 31, 2013 Number of Audit Reports No budget Impact (Actual and Estimated) Budget Impact A. Audit reports for which final action had not been taken by the commencement of the reporting. B. Audit reports on which management decisions were made during the reporting period. C. Audit reports on which final action was taken during the reporting period. (i) the actual dollar value of recommendations that were completed. (ii) the actual dollar value of recommendations that management has subsequently concluded should not or could not be implemented or completed. (iii) the actual dollar value of recommendations that management has subsequently concluded should not or could not be determined (calculated). (iv) the estimated dollar value of ''funds to be put to better use'' as agreed to by GSA management and the OIG. D. Audit reports for which no final action has been taken by the end of the reporting period. 80 $710,251,098 $0 23 $421,214,883 $0 7 $22,544,458 $0 $791,088 $0 $0 $0 $250,000 $0 $21,503,370 $0 96 $1,108,921,523 $0 Internal Audits Audits with Management Decisions made prior to March 31, 2012, but with Final Action not taken as of March 31, 2013 REPORT NUMBER TITLE OF REPORT DATE OF REPORT MANAGEMENT DECISION AMOUNTS REASON FOR NO FINAL ACTION PROJECTED COMPLETION DATE Disallowed Costs Better Use Funds A110072Q6P11004 Review of the Federal Acquisition Service's National Customer Service Center 03/31/2011 $0 $0 Action plan in implementation stage. 07/15/2013 A110171PRR11011 Limited Scope Review of Southern Maryland Courthouse Annex Project 08/18/2011 $0 $0 Action plan in implementation stage. 05/15/2013 A100078BFF11002 Audit of the General Services Administration's Fiscal Year 2010 Financial Statement 12/23/2010 $0 $0 Action plan in implementation stage. 05/15/2013 A110095QFP11008 FY 2011 Office of Inspector General Information Technology Security Audit of the SmartPay - Citibank System 09/30/2011 $0 $0 Action plan in implementation stage. 05/15/2013 A110096QFP11009 FY 2011 Office of Inspector General Information Technology Security Audit of the AT&T Operational Support System 09/30/2011 $0 $0 Action plan in the implementation stage. 06/15/2013 Contract Audits Audits with Management Decisions made prior to March 31, 2012, but with Final Action not taken as of March 31, 2013 REPORT NUMBER NAME OF CONTRACTOR DATE OF REPORT MANAGEMENT DECISION AMOUNTS REASON FOR NO FINAL ACTION Disallowed Costs Better Use Funds A100195Q3X11013 Knight Protective Service, Inc. 11/22/2010 $16,032 $4,777,562 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A090192Q2X11015 SHI International Corporation 11/24/2010 $0 $0 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A080210Q6X09062 Immix Technology Inc. 04/27/2009 $711,525 $0 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A100201Q4X11017 Government-Buys, Incorporated 12/14/2010 $5,119 $128,521 Price/Settlement Negotiated - Negotiations have been completed between Contracting Officer and contractor A100172Q6X11020 New England Woodcraft, Inc. 12/27/2010 $10,850 $0 In the Process of Collection - GSA is in the process of collecting funds owed the government from the contractor REPORT NUMBER NAME OF CONTRACTOR DATE OF REPORT MANAGEMENT DECISION AMOUNTS REASON FOR NO FINAL ACTION Disallowed Costs Better Use Funds A100178P2X11024 Bovis Lend Lease LMB, Inc. 01/31/2011 $0 $410,983 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A100075Q7X11022 Cort Business Services Corporation 01/27/2011 $0 $1,575,000 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A100003Q7X11030 McLane Advanced Technologies, LLC 02/24/2011 $0 $0 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A100062Q5X11032 Carahsoft Technology Corporation [Carahsoft] 03/10/2011 $0 $15,700,000 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A100168Q5X11034 Johnson Controls, Inc. 03/16/2011 $0 $9,700,000 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A100114Q2X11036 Ahurs Scientific, Inc. 03/29/2011 $123,252 $0 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A100171P9X11025 Layton Construction Company, Inc. 02/02/2011 $0 $1,899,985 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor REPORT NUMBER NAME OF CONTRACTOR DATE OF REPORT MANAGEMENT DECISION AMOUNTS REASON FOR NO FINAL ACTION Disallowed Costs Better Use Funds A110073Q6X11049 PPS Infotech, LLC (PPS) 05/10/2011 $0 $0 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A110044Q7X11051 Vaisala, Inc. 05/12/2011 $1,243 $0 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A110063QAX11053 IntelliDyne, LLC 05/16/2011 $3,948,160 $0 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A110070P9X11058 Bergelectric Corporation 06/01/2011 $0 $2,828,737 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A110087Q3X11057 National Interest Security Company, LLC 06/01/2011 $649,465 $5,728,148 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A110115Q7X11061 Pacific Star Communications, Inc. 06/10/2011 $23,201 $0 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A100193Q4X11014 The Stratix Corporation 11/24/2010 $41,168 $0 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor REPORT NUMBER NAME OF CONTRACTOR DATE OF REPORT MANAGEMENT DECISION AMOUNTS REASON FOR NO FINAL ACTION Disallowed Costs Better Use Funds A100221Q6X11052 Mainline Information Systems, Inc. 05/12/2011 $208,889 $876,904 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A110108Q4X11063 Protective Products Enterprises 06/13/2011 $0 $553,510 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A080177Q9X09015 Tecolote Research, Incorporated 12/12/2008 $0 $658,765 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A080136Q2X09028 Dynamic Decisions, Inc. 01/20/2009 $0 $0 Price/Settlement Negotiated - Negotiations have been completed between Contracting Officer and contractor A090045Q7X11066 C-Tech Industries Inc. / Karcher North America, Inc. 06/30/2011 $0 $0 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A110098P5X11069 KenMor Electric Company, L.P. 07/06/2011 $0 $1,045,954 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A110132PRX11067 R.A. Heintges & Associates 07/08/2011 $0 $95,839 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor REPORT NUMBER NAME OF CONTRACTOR DATE OF REPORT MANAGEMENT DECISION AMOUNTS REASON FOR NO FINAL ACTION Disallowed Costs Better Use Funds A110132PRX11068 Smith-Miller & Hawkinson Architects, LLP 07/08/2011 $0 $6,225,926 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A110140PAX11071 Architect/Engineering Proposal Lehman Smith McLeish, PLLC, Subcontractor to Smith-Miller & Hawkinson Architects LLP 07/14/2011 $0 $176,478 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A100140Q5X11070 Veterans Imaging Products, Inc. 07/07/2011 $3,893 $496,000 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A110088Q3X11079 Global Protection USA, Inc 07/28/2011 $29,337 $0 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A110109Q41X11078 Security Consultants Group, Incorporated 07/27/2011 $0 $83,119,440 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A100213P9X11023 Cobb Mechanical Contractors, Colorado Springs, CO 01/27/2011 $0 $4,864,953 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor REPORT NUMBER NAME OF CONTRACTOR DATE OF REPORT MANAGEMENT DECISION AMOUNTS REASON FOR NO FINAL ACTION Disallowed Costs Better Use Funds A100170P9X11077 Caddell Construction Company, Incorporated 07/27/2011 $0 $5,948,364 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A100174P2X11076 Leon D.-Dematteis-Construction Corporation 07/25/2011 $0 $1,401,452 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A100182P2X11082 Security Construction Services, Inc. 08/03/2011 $0 $12,780 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A100119Q6X11081 Noble Sales Co., Inc. 08/03/2011 $0 $0 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A110133PAX11080 Architect Engineer Proposal Arup USA, Inc., Subcontractor to Smith-Miller & Hawkinson Architects LLP 08/04/2011 $0 $134,505 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A110102P5X11083 W.G. Yates & Sons Construction Company 08/10/2011 $0 $4,018,977 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor REPORT NUMBER NAME OF CONTRACTOR DATE OF REPORT MANAGEMENT DECISION AMOUNTS REASON FOR NO FINAL ACTION Disallowed Costs Better Use Funds A110180P9X11084 RTKL Associates, Inc. 08/15/2011 $0 $412,057 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A110111Q7X11086 Thermo Electron North America , LLC 08/19/2011 $0 $249,000 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A090196P2X11087 Bovis Lend Lease LMB, Inc. 08/22/2011 $0 $33,438 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A110136Q3X11088 Konica Minolta Business Solutions U.S.A., Inc. 08/25/2011 $11,599 $35,625,685 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A110182P4X11090 Hensel Phelps Construction Company 09/01/2011 $0 $1,396,219 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A110021P9X11093 Myrex Industries 09/08/2011 $0 $5,773,586 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A110067Q2X11092 Clifton Gunderson, LLP 09/09/2011 $1,374 $1,196,561 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor REPORT NUMBER NAME OF CONTRACTOR DATE OF REPORT MANAGEMENT DECISION AMOUNTS REASON FOR NO FINAL ACTION Disallowed Costs Better Use Funds A110174Q4X11097 Protective Products Enterprises 09/15/2011 $63,992 $0 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A110122Q9X11096 Agilent Technologies, Incorporated 09/14/2011 $110,662 $307,400 In the Process of Collection - GSA is in the process of collecting funds owed the government from the contractor A110146P9X11095 White Construction Company 09/12/2011 $0 $829,494 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A100108P2X11098 Bovis Lend Lease LMB, Inc. 09/28/2011 $0 $291,658 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A100210Q5X12001 Labat-Anderson, Inc. 10/13/2011 $0 $3,200,000 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A100215P2X12002 Bovis Lend Lease LMB, Inc. 10/18/2011 $0 $51,369 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A100217Q5X12005 CliniComp International, Inc. 11/17/2011 $0 $5,060,000 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor REPORT NUMBER NAME OF CONTRACTOR DATE OF REPORT MANAGEMENT DECISION AMOUNTS REASON FOR NO FINAL ACTION Disallowed Costs Better Use Funds A110197Q3X12003 KDH Defense Systems, Inc. 11/15/2011 $1,331 $16,781,668 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A110177P5X12006 Way Engineering Ltd 01/31/2012 $0 $412,921 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A110176Q4X12010 Fontaine Trailer Company, Incorporated 12/07/2011 $0 $4,648,519 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A090106Q3X09084 Perot Systems Government Services, Inc. 08/19/2009 $34,758 $33,743,210 In the Process of Collection - GSA is in the process of collecting funds owed the government from the contractor A090090Q2X09086 Ezenia!, Inc. 08/21/2009 $0 $0 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A110153P5X12012 Letsos Company, Subcontractor to W.G. Yates & Sons Construction Company 12/19/2011 $0 $1,143,212 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A090112Q6X11060 ITS Services, Inc. 06/07/2011 $21,927,177 $0 The contractor has appealed the Contracting Officer’s decision to the U.S. Court of Federal Claims REPORT NUMBER NAME OF CONTRACTOR DATE OF REPORT MANAGEMENT DECISION AMOUNTS REASON FOR NO FINAL ACTION Disallowed Costs Better Use Funds A110178Q3X12014 Sharp Electronics Corporation 12/22/2011 $49,653 $6,752,403 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A110191QAX12016 Paradigm Technologies, Inc. 12/27/2011 $0 $2,557,773 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A110198Q4X12015 Scott Technologies Incorporated 12/27/2011 $24,137 $5,727,277 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A110186Q7X12018 BRSI, L.P. 01/23/2012 $0 $7,425,000 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A110152Q9X12017 Technology Associates International Corporation 01/19/2012 $0 $0 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A120065P9X12019 Bergelectric Corporation 02/03/2012 $0 $322,910 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A110200Q5X12025 Deco, Inc. 03/07/2012 $24,690 $0 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor REPORT NUMBER NAME OF CONTRACTOR DATE OF REPORT MANAGEMENT DECISION AMOUNTS REASON FOR NO FINAL ACTION Disallowed Costs Better Use Funds A080030Q3X09087 Hewlett-Packard Company 08/21/2009 $59,353 $81,038,538 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A090254PCX09097 Greenhorne & O'Mara, Inc. 09/04/2009 $0 $118,000 Price/Settlement Negotiated - Negotiations have been completed between Contracting Officer and contractor A090074Q7X09099 TechFlow, Inc. 09/04/2009 $0 $4,373,215 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A090089Q4X09095 Mohawk Carpet Corporation: Lees Carpets Division 09/03/2009 $124,119 $3,394,643 In the Process of Collection - GSA is in the process of collecting funds owed the government from the contractor A090232PCX09101 Haley & Aldrich, Inc. 09/09/2009 $0 $11,762 Price/Settlement Negotiated - Negotiations have been completed between Contracting Officer and contractor A090234PCX09102 HDR Architecture, Inc. 09/10/2009 $0 $809,387 Price/Settlement Negotiated - Negotiations have been completed between Contracting Officer and contractor REPORT NUMBER NAME OF CONTRACTOR DATE OF REPORT MANAGEMENT DECISION AMOUNTS REASON FOR NO FINAL ACTION Disallowed Costs Better Use Funds A090202Q6X10016 Computech, Inc. 11/09/2009 $0 $19,043,879 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A080144Q7X10019 BMC Software, Inc. 11/17/2009 $0 $3,246,860 Price/Settlement Negotiated - Negotiations have been completed between Contracting Officer and contractor A090159Q5X10022 RCF Information Systems, Inc. 12/10/2009 $4,459 $522,882 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A090145Q5X09082 BTAS, Inc. Beavercreek, OH 08/06/2009 $0 $0 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A090222QWX10058 Force 3, Inc. 06/23/2010 $0 $0 Price/Settlement Negotiated - Negotiations have been completed between Contracting Officer and contractor A080070QWX10063 Accenture, LLP 07/06/2010 $0 $0 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor REPORT NUMBER NAME OF CONTRACTOR DATE OF REPORT MANAGEMENT DECISION AMOUNTS REASON FOR NO FINAL ACTION Disallowed Costs Better Use Funds A090140Q6X10081 Systems Research and Applications Corporation 08/24/2010 $392,685 $0 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A080124Q7X10086 ASAP SOFTWARE EXPRESS, Inc. 09/15/2010 $739,985 $0 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A100148P9X10087 Alutiiq International Solutions, LLC 09/16/2010 $0 $4,096,596 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A100117QWX11001 Dun & Bradstreet, Inc. 10/07/2010 $0 $0 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A100167Q6X11007 Affordable Interior Systems, Inc. 11/02/2010 $95,428 $1,756,120 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A110195PRX11085 J.E. DUNN Construction Co. 08/17/2011 $0 $0 Case was settled and dismissed. Payment still pending A100183P9X11054 Moshe Safdie and Associates, Inc. 05/17/2011 $0 $2,735,713 In litigation and awaiting a decision after the hearing REPORT NUMBER NAME OF CONTRACTOR DATE OF REPORT MANAGEMENT DECISION AMOUNTS REASON FOR NO FINAL ACTION Disallowed Costs Better Use Funds A090133Q7X11005 SeaArk Marine, Inc. 10/27/2010 $1,130,227 $0 In the Process of Collection - GSA is in the process of collecting funds owed the government from the contractor A090108Q5X10059 Integrated Data Services Inc. 06/24/2010 $0 $0 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor A090130Q7X10076 Cort Business Furniture 08/16/2010 $83,696 $0 In Negotiation - Negotiations are proceeding between Contracting Officer and contractor Glossary of Terms The following definitions, based on the Inspector General Act Amendment of 1988, GSA order 2030.2D, and discussions with the GSA OIG, apply to terms used in this Semiannual Management Report. Internal Audit. This is an appraisal of GSA activities performed by the Office of Inspector General (OIG) to ensure that activities are administered efficiently and achieve the desired results. Questioned Costs. Costs questioned by the OIG as a result of: an alleged violation of a provision of a law, regulation, contract, grant, cooperative agreement, or other agreement or document governing the expenditure of funds a finding that, at the time of an audit, such cost is not supported by adequate documentation; a finding that the expenditure of funds for the intended purpose is unnecessary or unreasonable. Disallowed Cost. Questioned costs that GSA management in a management decision sustained or agreed should not be charged to the Government. Recommendation that Funds be Put to Better Use. A recommendation by the OIG that funds could be used more efficiently if management took action to implement and complete the recommendations, including: reductions in outlays; de-obligation of funds from programs or operations; withdrawal of interest subsidy costs on loans or loan guarantees, insurance or bonds; costs not incurred by implementing recommended improvements related to the operations of the establishment, a contractor or grantee; avoidance of unnecessary expenditures noted in pre-award reviews of contract or grant agreements; any other savings that are identified specifically. Management Decision. The evaluation by management of the findings and recommendations included in an audit report and the issuance of a final decision by management concerning its response to such findings and recommendations, including planned corrective actions to remedy weaknesses identified in the report. Final Action. The completions of all actions that GSA management concluded in its management decision were necessary with respect to the findings and recommendations included in the audit report. In the event that GSA management concluded no action was necessary, final action occurred when the management decision was made. Management Actions - Questioned Costs. The following is a list of the different management actions used by GSA management to resolve questioned costs in an audit report. Audit reports on which management decisions were made during the period: Data pertaining to the number of audit reports on which management decisions were made during the period and the associated amount of disallowed costs was furnished by the OIG. Write-offs: For the purposes of this report, write-offs are interpreted to represent the difference between the disallowed cost and the amount successfully recovered. Management Actions - Better Use Funds. The following is a list of the different management actions used by GSA management to resolve the "better use" of funds in an audit report. Better Use Funds: The figure represents amounts cited as "cost avoidance" and "funds to be put to better use," as agreed to by GSA management and the OIG. Prior to April 1990, no funds were identified by the OIG specifically as "funds to be put to better use," and no management decisions were issued based on the consideration of "better use" of funds. Budget Impact Funds: Funds identified as “budget impact” involve the obligation process. Audit-related savings of these funds, depending on the particular fund involved, may be available for reprogramming. No Budget Impact Funds: Funds identified as “no budget impact” are composed of estimated and actual amounts, and do not involve obligated monies, and, therefore, cannot be construed as having a material effect on GSA''s appropriated funds. Audit reports on which management decisions were made during the period: Data pertaining to the number of audit reports on which management decisions were made during the period and the associated dollar amounts agreed to by management were furnished by the OIG. Value of recommendations that management concluded should not or could not be calculable: Management was unable to determine the award amounts and "better use funds" implemented since the amount is included in the overall award to the prime contractor and savings could not be determined. A:\OAS_Divisions\GAO_IG Audit Response (H1C)\FY 13 Semi annual Report\3-31-13 Match report data\Match Report Letter sent to OIG.jpg Appendix A This page has been left blank intentionally. U.S. General Services Administration 1800 F Street, NW Washington, DC 20405 www.gsa.gov