U.S. General Services Administration
Administrator's Semiannual
Management Report to Congress
Report No.50
October 1, 2013
to March 31, 2014
U.S. General Services Administration
Daniel M. Tangherlini
Administrator
Office of Administrative Services
Cynthia A. Metzler
Chief Administrative Services Officer
GAO/IG Audit Response Branch
Brenda Parson
Branch Chief
May 2014
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, GAO/IG Audit Response
Branch, Administrator's Semiannual Management Report to Congress, No. 50, Washington,
DC 20405.
To obtain copies of this report,
Write to: U.S. General Services Administration, Office of Administrative Services, GAO/IG
Audit Response Branch, 1800 F ST, NW Washington, DC 20405
E-mail your request to: brenda.parson@gsa.gov
Call in your request: (202) 501-1781
Obtain a copy of this report on the Agency's Web site at:
Semiannual Report to the Congress
Contents
Synopsis of Audit Activity 4
Overview 5
Organization of Audit Follow-up Program 6
Agency Audit Follow-up Program 6
Agency Audit Follow-up Official 6
The Chief Administrative Services Officer 6
Heads of Services and Staff Offices and Regional Administrators 6
Audits with Disallowed Costs 7
Audits with Better Use Funds 8
Internal Audits 9
Audits under Appeal/Litigation 12
Contract Audits 14
Glossary of Terms 28
Appendix A 31
Synopsis of Audit Activity
In accordance with the Inspector General Act of 1978, as amended, the Administrator is
required to report directly to the Congress on management decisions and final actions
taken on audit recommendations made by the Office of Inspector General (OIG) of the
General Services Administration. This report covers the semiannual management
reporting period of October 1, 2013, through March 31, 2014.
The report provides a summary of:
* Cases where final action has not been taken on audits one year after the date of
the management decision.
* Implementation of the recommendations by GSA management contained in audit
reports issued by the OIG.
At the commencement of this semiannual management reporting period, there were audit
reports with disallowed costs, audits with better use funds, and audits with both
disallowed cost and better use funds. During the reporting period, a total of 220 audit
reports were pending final action containing financial recommendations totaling
$2,293,355,894. There were 208 contract audits with financial recommendations totaling
$2,293,246,894 and 12 internal audits with financial recommendations totaling $109,000.
During the reporting period, management decisions were made on 28 audit reports
concerning nationwide GSA programs and operations.
Of the 28 audits, 10 of these audits found $3,127,592 in pre-award contracts and internal
program spending that was incorrectly charged to the Government (known as disallowed
costs). Of the 28 audits, 18 audits recommended that $775,501,842 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 in
Appendix A of this report.
During the six-month period, GSA was able to successfully take final action on a total
of 25 audits. These audits represent the recovery of $2,582,859 in Government
funds and the identification of $219,727,686 in potential future savings.
As of March 31, 2014, 211 audit reports remained open. There are several audits
involving claims under appeal or litigation during this reporting period.
Overview
This report, submitted pursuant to the Inspector General Act of 1978, as amended,
presents management's perspective on audit resolution and follow-up activity at GSA for
the period beginning October 1, 2013, through March 31, 2014. This is the agency's 50th
report to the Congress since the implementation of the Act (Public Law 100-504). The data
in the report indicates that GSA's audit follow-up efforts continue to play a significant role in
the effective management of the agency's operations and the accomplishment of its
mission which results in better use of taxpayers� dollars.
U.S. General Services Administration Organization
GSA is organized around two major business functions represented by the Federal
Acquisition Service and the Public Buildings Service. In addition, GSA houses the Office
of Government-wide Policy, the Office of Citizen Services and Innovative Technologies,
and a number of Staff Offices that provide support to the other GSA organizations. There
are 11 regions in the GSA structure.
The Administrator of GSA directs the execution of all GSA functions. Members of his
office, as well as Regional Administrators and Heads of Services and Staff Offices, advise
and make recommendations on policy or operational issues of national scope. They are
also responsible for execution of programs and services within their service, region or
staff office, under the leadership of the Administrator.
Organization of Audit Follow-Up Program
GSA has effective systems in place for keeping track of audit recommendations. GSA
senior management is committed to ensuring 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. A
description of the responsibilities of GSA officials involved in the audit follow-up
process is set forth below.
Agency Audit Follow-up Official
The Deputy Administrator is the Agency Audit Follow-up Official responsible for audit
follow-up activity. As such, she/he 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/he also makes final
decisions to resolve differences between agency management and the OIG.
The Chief Administrative Services Officer (CASO)
The CASO provides direction and oversight 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 and the OIG;
- Overseeing the collection and proper accounting of monetary 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 for GAO draft reports and transmittals for GAO final 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.
Final action for the six-month period
Ending MARCH 31, 2014
A. Audit reports for which final action
had not been taken by the
commencement of the reporting period.
B. Audit reports on which GSA/OIG
management decisions were made during
the reporting period.
Number of Audit
Reports
66
10
Disallowed
Costs
$106,611,824
$3,127,592
C. Audit reports on which final action was
taken during the reporting period.
(i) the dollar value of disallowed costs
- collections................. $2,142,525
- offset ................. $0
- property in lieu of $0
cash...
- surplus ............... $12,763
- other ............... $0
(ii) the dollar value of disallowed costs
that were written off by management.
9
$2,582,859
$2,142,525
$453,097
D. Audit reports for which no final action
has been taken by the end of the reporting
period.
67
$107,392,878
Final action for the six-month
period
Ending MARCH 31, 2014
A. Audit reports for which final
action had not been taken by the
commencement of the reporting
B. Audit reports on which
GSA/OIG management decisions
were made during the reporting
period.
Number of Audit
Reports
142
18
No budget Impact
(Actual and Estimated)
$2,186,744,070
$775,501,842
Budget
Impact
$0
$0
C. Audit reports on which final
16
$219,727,686
$0
action was taken during the
reporting period.
(i) the actual dollar value of
8,368,859
$0
recommendations that were
actually completed.
(ii) the actual dollar value of
-1,596,498
$0
recommendations that
management has subsequently
concluded should not or could not
be implemented or completed.
(iii) the actual dollar value of
0
$0
recommendations that
management has subsequently
concluded should not or could not
be determined (calculated).
(iv) the estimated dollar value of
212,955,325
$0
''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.
144
$2,346,302,437
$0
REPORT NUMBER
TITLE OF REPORT
DATE OF
REPORT
MANAGEMENT DECISION
AMOUNTS
REASON FOR NO
FINAL ACTION
PROJECTED
COMPLETION
DATE
Disallowed
Costs
Better Use
Funds
A090172PRR11013
Recovery Act Report -
GT "Mickey" Leland
Federal Building
Renovation Project:
Construction Contract
Audit of PBS's Major
Construction and
Modernization
Projects Funded by
The American
Recovery and
Reinvestment Act of
2009
08/19/2011
$0
$0
Audit is in the
implementation
stage.
06/15/2014
A110100Q9P12009
Audit of Management
Controls Within the
Network Services
Division Pacific Rim
Region, Federal
Acquisition Service
05/30/2012
$0
$0
Audit is in the
implementation
stage.
05/15/2014
A110072Q6P11004
Review of the Federal
Acquisition Service's
National Customer
Service Center
03/31/2011
$0
$0
Audit is in the
implementation
stage.
05/15/2014
A110217PRR13001
Follow-up Audit of
GSA's Acquisition of
Services for the
International Trade
Center at the Ronald
Reagan Building:
PBS's Oversight of
Contract
Requirements
12/17/2012
$0
$0
Audit is in the
implementation
stage.
11/15/2014
REPORT NUMBER
TITLE OF REPORT
DATE OF
REPORT
MANAGEMENT DECISION
AMOUNTS
REASON FOR NO
FINAL ACTION
PROJECTED
COMPLETION
DATE
Disallowed
Costs
Better Use
Funds
A110095QFP11008
FY 2011 Office of
Inspector General
Information
Technology Security
Audit of the
SmartPay�
09/30/2011
$0
$0
Audit is in the
implementation
stage.
05/15/2014
A110096QFP11009
FY 2011 Office of
Inspector General
Information
Technology Security
Audit of the AT&T
Operational Support
System
09/30/2011
$0
$0
Audit is in the
implementation
stage.
07/15/2014
Audits under Appeal/Litigation
REPORT NUMBER
NAME OF CONTRACTOR
DATE OF
REPORT
MANAGEMENT DECISION
AMOUNTS
Disallowed
Costs
Better Use
Funds
A110070P9X11058
Bergelectric Corporation
06/01/2011
$0
$2,828,737
A100170P9X11077
Caddell Construction Company,
Incorporated
07/27/2011
$0
$5,948,364
A110021P9X11093
Myrex Industries
09/08/2011
$0
$5,773,586
A120065P9X12019
Bergelectric Corporation
02/03/2012
$0
$322,910
A120070P9X12029
Cobb Mechanical Contractors
03/28/2012
$0
$194,480
A120069P9X12039
Cleveland Construction, Inc.
05/09/2012
$0
$1,207,623
A120063P9X12055
Caddell Construction Co., Inc.
08/09/2012
$0
$7,975,645
A120121P9X12064
Alutiiq International Solutions, LLC
09/18/2012
$0
$1,692,286
A100148P9X10087
Alutiiq International Solutions, LLC
09/16/2010
$0
$4,096,596
A090112Q6X11060
ITS Services, Inc.
06/07/2011
$0
$21,927,177
REPORT NUMBER
NAME OF
CONTRACTOR
DATE OF
REPORT
MANAGEMENT DECISION
AMOUNTS
REASON FOR
NO
FINAL ACTION
Disallowed
Costs
Better Use
Funds
A090192Q2X11015
SHI International
Corporation
11/24/2010
$0
$0
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and Contractor
A100172Q6X11020
New England Woodcraft,
Inc.
12/27/2010
$10,850
$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
A100213P9X11023
Cobb Mechanical
Contractors, Colorado
Springs, CO
01/27/2011
$0
$4,864,953
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
A100114Q2X11036
Ahura 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
Unresolved -
Agreement has not
been reached
between OIG and
Contracting Officer
on the Decision
Record
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
Litigation in
Process - The
Contractor has
appealed the
Contracting
Officer's decision
and the audit is
now in the litigation
process
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
REPORT NUMBER
NAME OF
CONTRACTOR
DATE OF
REPORT
MANAGEMENT DECISION
AMOUNTS
REASON FOR
NO
FINAL ACTION
Disallowed
Costs
Better Use
Funds
A110108Q4X11063
Protective Products
Enterprises
06/13/2011
$0
$553,510
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
A110132PRX11067
R.A. Heintges & Associates
07/08/2011
$0
$95,839
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and Contractor
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
REPORT NUMBER
NAME OF
CONTRACTOR
DATE OF
REPORT
MANAGEMENT DECISION
AMOUNTS
REASON FOR
NO
FINAL ACTION
Disallowed
Costs
Better Use
Funds
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
A100170P9X11077
Caddell Construction
Company, Incorporated
07/27/2011
$0
$5,948,364
Litigation in
Process - The
Contractor has
appealed the
Contracting
Officer's decision
and the audit is
now in the litigation
process
A100182P2X11082
Security Construction
Services, Inc.
08/03/2011
$0
$12,780
Price/Settlement
Negotiated -
Negotiations have
been completed
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
REPORT NUMBER
NAME OF
CONTRACTOR
DATE OF
REPORT
MANAGEMENT DECISION
AMOUNTS
REASON FOR
NO
FINAL ACTION
Disallowed
Costs
Better Use
Funds
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
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
Price/Settlement
Negotiated -
Negotiations have
been completed
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
A110021P9X11093
Myrex Industries
09/08/2011
$0
$5,773,586
Litigation in
Process - The
Contractor has
appealed the
Contracting
Officer's decision
and the audit is
now in the litigation
process
REPORT NUMBER
NAME OF
CONTRACTOR
DATE OF
REPORT
MANAGEMENT DECISION
AMOUNTS
REASON FOR
NO
FINAL ACTION
Disallowed
Costs
Better Use
Funds
A110067Q2X11092
Clifton Gunderson, LLP
09/09/2011
$1,374
$1,196,561
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and Contractor
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
A100210Q5X12001
Labat-Anderson, Inc.
10/13/2011
$0
$3,200,000
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and Contractor
A110197Q3X12003
KDH Defense Systems, Inc.
11/15/2011
$1,331
$16,781,668
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
REPORT NUMBER
NAME OF
CONTRACTOR
DATE OF
REPORT
MANAGEMENT DECISION
AMOUNTS
REASON FOR
NO
FINAL ACTION
Disallowed
Costs
Better Use
Funds
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
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
REPORT NUMBER
NAME OF
CONTRACTOR
DATE OF
REPORT
MANAGEMENT DECISION
AMOUNTS
REASON FOR
NO
FINAL ACTION
Disallowed
Costs
Better Use
Funds
A120065P9X12019
Bergelectric Corporation
02/03/2012
$0
$322,910
Litigation in
Process - The
Contractor has
appealed the
Contracting
Officer's decision
and the audit is
now in the litigation
process
A120075P4X12020
Enola Contracting Services,
Inc.
02/08/2012
$0
$0
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and Contractor
A110089Q2X12021
Quality Software Services,
Inc.
02/22/2012
$714
$17,652,348
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and Contractor
A110097Q7X12024
Dell Marketing, L.P.
03/01/2012
$0
$142,125,280
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and Contractor
A120021Q3X12023
Presidio Networked
Solutions, Inc.
03/02/2012
$31,878
$2,427,935
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
A120074Q5X12028
Kimball International, Inc.
03/27/2012
$0
$29,500,000
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and Contractor
A120070P9X12029
Cobb Mechanical
Contractors
03/28/2012
$0
$194,480
Litigation in
Process - The
Contractor has
appealed the
Contracting
Officer's decision
and the audit is
now in the litigation
process
A120090Q3X12032
Mine Safety Appliances
Company
04/10/2012
$1,511
$3,270,118
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and Contractor
A110143Q5X12034
The J. Diamond Group, Inc.
04/12/2012
$8,555
$21,200,000
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and Contractor
A120086Q3X12035
The Analysis Corporation
(TAC)
04/23/2012
$103,238
$10,356,816
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and Contractor
A110213Q4X12036
Miami Air International,
Incorporated
05/01/2012
$8,428
$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
A120069P9X12039
Cleveland Construction,
Inc.
05/09/2012
$0
$1,207,623
Litigation in
Process - The
Contractor has
appealed the
Contracting
Officer's decision
and the audit is
now in the litigation
process
A110169Q3X12048
Oce North America, Inc.
06/29/2012
$225,180
$0
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and Contractor
A110166Q2X12049
Pitney Bowes, Inc.
07/05/2012
$0
$7,076,483
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and Contractor
A120126Q5X12050
Hamilton Products Group,
Inc.
07/06/2012
$0
$15,000,000
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and Contractor
A120136P4X12053
Lenex Steel Company
07/17/2012
$0
$834,067
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and Contractor
A120063P9X12055
Caddell Construction Co.,
Inc.
08/09/2012
$0
$7,975,645
Litigation in
Process - The
Contractor has
appealed the
Contracting
Officer's decision
and the audit is
now in the litigation
process
REPORT NUMBER
NAME OF
CONTRACTOR
DATE OF
REPORT
MANAGEMENT DECISION
AMOUNTS
REASON FOR
NO
FINAL ACTION
Disallowed
Costs
Better Use
Funds
A120084Q7X12056
Raytheon Company
08/09/2012
$0
$1,490,430
Unresolved -
Agreement has not
been reached
between OIG and
Contracting Officer
on the Decision
Record
A110209Q6X12057
Propper International Sales,
Inc.
08/15/2012
$2,063,375
$0
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and Contractor
A120083P9X12059
M.A. Mortenson Company
08/21/2012
$0
$2,814,148
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and Contractor
A120061Q5X12060
Schneider Electric USA,
Inc.
08/23/2012
$110,209
$15,000,000
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and Contractor
A120121P9X12064
Alutiiq International
Solutions, LLC
09/18/2012
$0
$1,692,286
Litigation in
Process - The
Contractor has
appealed the
Contracting
Officer's decision
and the audit is
now in the litigation
process
A080030Q3X09087
Hewlett-Packard Company
08/21/2009
$59,353
$81,038,538
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
A090254PCX09097
Greenhorne & O'Mara, Inc.
09/04/2009
$0
$118,000
Price/Settlement
Negotiated -
Negotiations have
been completed
between
Contracting Officer
and 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
A120141P9X12065
Turner Construction
Company
09/20/2012
$0
$858,840
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and Contractor
A120103Q3X12063
ManTech Advanced
Systems International, Inc.
09/12/2012
$3,230
$68,786,129
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and Contractor
A120148P9X13003
Siemens Industries, Inc.
10/17/2012
$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
A090202Q6X10016
Computech, Inc.
11/09/2009
$0
$19,043,879
In Negotiation -
Negotiations are
proceeding
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
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
REPORT NUMBER
NAME OF
CONTRACTOR
DATE OF
REPORT
MANAGEMENT DECISION
AMOUNTS
REASON FOR
NO
FINAL ACTION
Disallowed
Costs
Better Use
Funds
A100148P9X10087
Alutiiq International
Solutions, LLC
09/16/2010
$0
$4,096,596
Litigation in
Process - The
Contractor has
appealed the
Contracting
Officer's decision
and the audit is
now in the litigation
process
A100117QWX11001
Dun & Bradstreet, Inc.
10/07/2010
$0
$0
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and Contractor
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
Price/Settlement
Negotiated -
Negotiations have
been completed
between
Contracting Officer
A090130Q7X10076
Cort Business Furniture
08/16/2010
$83,696
$0
In proceeding
Negotiation -
Negotiations are
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
A120066Q5X13004
Life Fitness, Inc.
11/02/2012
$0
$29,300,000
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and Contractor
A120158P9X13008
Turner Construction
Company
11/20/2012
$0
$167,093
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and Contractor
A120071Q2X13002
ICF Z-Tech, Inc.
10/16/2012
$14,580
$166,639
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and Contractor
A120155Q3X13007
Avion Solutions, Inc.
11/21/2012
$0
$4,523,340
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and Contractor
A110147Q6X13010
Xerox Corporation
12/06/2012
$0
$8,511,087
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and Contractor
A120078Q4X13009
Computer Sciences
Corporation
12/06/2012
$0
$49,455,749
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and Contractor
A120107Q3X13012
Hewlett-Packard Company
12/20/2012
$28,563
$67,900,000
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
A120093Q5X13017
Reed Elsevier, Inc.
01/18/2013
$20,742
$46,000,000
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and Contractor
A120165P4X13019
Skanska USA Building, Inc.
01/30/2013
$0
$82,475
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and Contractor
A120098Q2X13025
Dynamics Research
Corporation
03/01/2013
$8,973
$6,040,027
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, apply to terms used in this Semiannual Management Report:
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 and concurrence by the OIG concerning its response to such
findings and recommendations, including planned corrective actions to remedy
weaknesses identified in the report.
Final Action. The completion of all actions that GSA management concluded in
its management decision was 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.
Appendix A
U.S. General Services Administration
1800 F Street, NW
Washington, DC 20405
www.gsa.gov