U.S. General Services Administration
Administrator's Semiannual
Management Report to the Congress
Report No.51
April 1, 2014
to September 30, 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
September 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. 51, 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:
Administrator�s Semiannual Management 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 10
Contract Audits 12
Glossary of Terms 27
Appendix A 29
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 (GSA). This report covers the semiannual management
reporting period of April 1, 2014, through September 30, 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 177 audit reports were
pending final action containing financial recommendations totaling $2,144,912,232.
There were 170 contract audits with financial recommendations totaling $2,144,788,464
and 7 internal audits with financial recommendations totaling $123,768.
During the reporting period, management decisions were made on 42 audit reports
concerning nationwide GSA programs and operations.
Of the 42 audits, 13 of these audits found $15,733,592 in pre-award, post-award contracts
and internal program spending that was incorrectly charged to the Government (known as
disallowed costs). Of the 42 audits, 29 audits recommended that $263,997,152 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 62
audits. These audits represent the recovery of $4,508,153 in Government funds and the
identification of $434,728,497 in potential future savings.
As of September 30, 2014, 157 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 April1, 2014, through September 30, 2014. This is the agency's 51st
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 Taxpayer's 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. In
addition, 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 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.
Audits with Disallowed Costs
Final action for the six-month period
Ending SEPTEMBER 30, 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
70
13
Disallowed
Costs
$53,021,557
$15,733,592
C. Audit reports on which final action was
taken during the reporting period.
(i) the dollar value of disallowed costs
- collections. $1,575,295
- offset ................... $0
- property in lieu of $0
cash...
- surplus ............... $0
- other ............... $569,410
(ii) the dollar value of disallowed costs
that were written off by management.
13
$4,508,153
$2,144,705
$2,363,448
D. Audit reports for which no final action
has been taken by the end of the reporting
period.
70
$64,246,996
Audits with Better Use Funds
Final action for the six-month Number of Audit No budget Impact Budget
Ending SEPTEMBER 30, 2014 Reports (Actual and Estimated) Impact
A. Audit reports for which final 107 $2,091,890,675 $0
action had not been taken by the
commencement of the reporting
B. Audit reports on which 29 $263,997,152 $0
GSA/OIG management decisions
were made during the reporting
period.
C. Audit reports on which final 49 $434,728,497 $0
action was taken during the
reporting period.
(i) the actual dollar value of $11,647,374 $0
recommendations that were
actually completed.
(ii) the actual dollar value of $11,332,442 $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 $434,413,565 $0
''funds to be put to better use'' as
agreed to by GSA management
and the OIG.
D. Audit reports for which no final 87 $1,921,159,330 $0
action has been taken by the end of
the reporting period.
Internal Audits
Audits with Management Decisions made prior to September 30, 2013,
but with Final Action not taken as of September 30, 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
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
12/31/2014
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
03/31/2015
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
01/15/2015
A090184PRR12008
Recovery Act Report -
Contract
Administration for
Group 10 Review of
PBS's Limited Scope
and Small
Construction Projects
Funded by the
American Recovery
and Reinvestment Act
of 2009
04/09/2014
$0
$0
Audit is under
implementation
review. Corrective
action plan pending.
09/30/2014
REPORT NUMBER
NAME OF CONTRACTOR
DATE OF
REPORT
MANAGEMENT DECISION
AMOUNTS
Disallowed
Costs
Better Use
Funds
A100213P9X11023
Cobb Mechanical Contractors,
Colorado Springs, CO
01/27/2011
$0
$4,864,953
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
A110178Q3X12014
Sharp Electronics Corporation
12/22/2011
$49,653
$6,752,403
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
A110147Q6X13010
Xerox Corporation
12/06/2012
$0
$8,511,087
REPORT NUMBER
NAME OF CONTRACTOR
DATE OF
REPORT
MANAGEMENT DECISION
AMOUNTS
Disallowed
Costs
Better Use
Funds
A130093P4X14045
Amthor Steel, Inc.
06/26/2014
$0
$2,065,356
A090112Q6X11060
ITS Services, Inc.
06/07/2011
$21,927,117
$0
A110088Q3X11079
Global Protection USA, Inc.
07/28/2011
$29,337
$0
11
Contract Audits
Audits with Management Decisions made prior to September 30, 2013,
but with Final Action not taken as of September 30, 2014
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
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
Litigation in Process
- The contractor has
appealed the
Contracting Officer's
decision and the
audit is now in the
litigation process
A120104Q2X13057
International Paper
Company dba Xpedx
07/22/2013
$52,616
$167,493
Price/Settlement
Negotiated -
Negotiations have
been completed
between Contracting
Officer and
contractor
A130056Q3X13048
DHA Group, Inc.
06/12/2013
$237,045
$9,240,000
In Negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A130093P4X14045
Amthor Steel, Inc.
06/26/2014
$0
$2,065,356
Litigation in Process
- The contractor has
appealed the
Contracting Officer's
decision and the
audit is now in the
litigation process
12
REPORT NUMBER
NAME OF
CONTRACTOR
DATE
OF
REPORT
MANAGEMENT DECISION
AMOUNTS
REASON FOR
NO
FINAL ACTION
Disallowed
Costs
Better Use
Funds
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
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
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
A090112Q6X11060
ITS Services, Inc
06/07/2011
$21,927,177
$0
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
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
Litigation in
Process - The
contractor has
appealed the
Contracting
Officer's decision
and the audit is
now in the litigation
process
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
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
A110180P9X11084
RTKL Associates, Inc.
08/15/2011
$0
$412,057
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
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
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
REPORT NUMBER
NAME OF
CONTRACTOR
DATE
OF
REPORT
MANAGEMENT DECISION
AMOUNTS
REASON FOR
NO
FINAL ACTION
Disallowed
Costs
Better Use
Funds
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
Price/Settlement
Negotiated -
Negotiations have
been completed
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
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
Litigation in
Process - The
contractor has
appealed the
Contracting
Officer's decision
and the audit is
now in the litigation
process
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
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
$121,312
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
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
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
REPORT NUMBER
NAME OF
CONTRACTOR
DATE
OF
REPORT
MANAGEMENT DECISION
AMOUNTS
REASON FOR
NO
FINAL ACTION
Disallowed
Costs
Better Use
Funds
A110143Q5X12034
The J. Diamond Group, Inc.
04/12/2012
$8,555
$21,200,000
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and contractor
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
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
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
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
REPORT NUMBER
NAME OF
CONTRACTOR
DATE
OF
REPORT
MANAGEMENT DECISION
AMOUNTS
REASON FOR
NO
FINAL ACTION
Disallowed
Costs
Better Use
Funds
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
A120148P9X13003
Siemens Industries, Inc.
10/17/2012
$0
$0
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and contractor
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
A090140Q6X10081
Systems Research and
Applications Corporation
08/24/2010
$392,685
$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
A110138Q6X13005
United Parcel Service, Inc.
11/05/2012
$0
$1,031,023
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and contractor
A120066Q5X13004
Life Fitness, Inc.
11/02/2012
$0
$29,300,000
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
REPORT NUMBER
NAME OF
CONTRACTOR
DATE
OF
REPORT
MANAGEMENT DECISION
AMOUNTS
REASON FOR
NO
FINAL ACTION
Disallowed
Costs
Better Use
Funds
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
Litigation in
Process - The
contractor has
appealed the
Contracting
Officer's decision
and the audit is
now in the litigation
process
A120078Q4X13009
Computer Sciences
Corporation
12/06/2012
$0
$49,455,749
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
A120177Q3X13021
ASI Government, Inc.
02/08/2013
$13,071
$11,541,977
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
REPORT NUMBER
NAME OF
CONTRACTOR
DATE
OF
REPORT
MANAGEMENT DECISION
AMOUNTS
REASON FOR
NO
FINAL ACTION
Disallowed
Costs
Better Use
Funds
A120178Q3X13026
VT Aepco, Inc.
03/05/2013
$76,352
$38,059,421
Unresolved -
Agreement has not
been reached
between OIG and
Contracting Officer
on the Decision
Record
A120109Q7X13030
ICF Macro, Inc.
03/21/2013
$0
$11,456,930
Unresolved -
Agreement has not
been reached
between OIG and
Contracting Officer
on the Decision
Record
A120095Q7X13024
Military Personnel Services
Corporation
02/28/2013
$87,379
$16,083,715
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and contractor
A120127Q4X13033
General Dynamics
Information Technology,
Inc.
03/29/2013
$147,371
$48,528,780
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and contractor
A120142QAX13031
Science Applications
International Corporation
(SAIC)
03/28/2013
$97,020
$280,483,385
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and contractor
A130051Q3X13037
ANSYS, Inc.
04/19/2013
$0
$13,071,886
Completed/Closed
- All actions have
been completed in
regard to this audit
and the audit has
been closed.
REPORT NUMBER
NAME OF
CONTRACTOR
DATE
OF
REPORT
MANAGEMENT DECISION
AMOUNTS
REASON FOR
NO
FINAL ACTION
Disallowed
Costs
Better Use
Funds
A130034P4X13032
Caddell Construction Co.,
Inc
03/28/2013
$0
$5,001,544
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and contractor
A130047P4X13040
Skanska USA Building, Inc.
05/13/2013
$0
$1,189,218
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and contractor
A130044Q6X13044
Tektronix, Inc.
05/29/2013
$0
$6,200,000
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and contractor
A120113Q2X13046
MSC Industrial Direct Co.
06/03/2013
$2,278
$55,064,975
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and contractor
A120175Q3X13041
STG Inc.
05/22/2013
$0
$0
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and contractor
A130069Q7X13051
L-3 Communications Vertex
Aerospace, LLC
06/28/2013
$248,423
$24,112,597
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and contractor
A120152Q6X13054
Herman Miller, Inc.
07/11/2013
$175,056
$20,574,360
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 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.
Appendix A
U.S. General Services Administration
1800 F Street, NW
Washington, DC 20405
www.gsa.gov