U.S. General Services Administration
Administrator's Semiannual
Management Report to the Congress
Report No. 52
October 1, 2014
to March 31, 2015
U.S. General Services Administration
Denise Turner Roth
Acting Administrator
Office of Administrative Services
Cynthia A. Metzler
Chief Administrative Services Officer
GAO/IG Audit Response Division
Leroy Ford
Director
April 2015
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 Division, Administrator�s Semiannual Management Report to the Congress, No.
52, Washington, DC 20405.
To obtain copies of this report,
Write to: U.S. General Services Administration, Office of Administrative Services, GAO/IG
Audit Response Division, 1800 F Street, NW Washington, DC 20405
E-mail your request to: leroy.ford@gsa.gov
Call in your request: (202) 501-4786
Obtain a copy of this report on the Agency's Web site at:
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 11
Glossary of Terms 26
Appendix A 28
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 October 1, 2014, through March 31, 2015.
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 147 audit
reports were pending final action containing financial recommendations totaling
$128,377,912. There were 143 contract audits with financial recommendations totaling
$1,991,399,347 and seven internal audits with financial recommendations totaling $0.
During the reporting period, management decisions were made on 39 audit reports
concerning nationwide GSA programs and operations.
Of the 39 audits, 32 of these audits found $18,001,611 in pre-award and post-award
contract spending which was incorrectly charged to the Government (known as
disallowed costs). Of the 39 audits, 29 audits recommended that $368,411,539 could be
used more effectively (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
23 audits. These audits represent the recovery of $1,102,792 in Government funds and
the identification of $256,896,079 in potential future savings.
As of March 31, 2015, 189 audit reports remained open. There were 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, 2014, through March 31, 2015. This is the agency's
52nd Semiannual Management 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 the
Administrator�s 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, this position 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. The
Deputy Administrator also makes final decisions to resolve differences between agency
management and the OIG.
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.
Final action for the six-month period
Ending MARCH 31, 2015
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
147
32
Disallowed
Costs
$128,377,912
$18,001,611
C. Audit reports on which final action was
taken during the reporting period.
(i) the dollar value of disallowed costs
- collections................. $1,102,792
- offset ................... $1,145
- property in lieu of $0
cash...
- surplus ............... $8,155
- other ............... $0
(ii) the dollar value of disallowed costs
that were written off by management.
23
$1,109,802
$1,109,802
$0
D. Audit reports for which no final action
has been taken by the end of the reporting
period.
189
$135,877,518
Final action for the six-month period Number of
Ending MARCH 31, 2015 Reports
A. Audit reports for which final action 143
had not been taken by the
commencement of the reporting period.
B. Audit reports on which 29
management decisions were
made during the reporting period.
Audit
No budget Impact
(Actual and Estimated)
$1,991,399,347
$368,411,539
Budget
Impact
$0
$0
C. Audit reports on which final
action was taken during the
19
$256,896,079
$0
reporting period.
(i) the actual dollar value of
$33,438
$0
recommendations that were
actually completed.
(ii) the actual dollar value of
$3,027
$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
$256,865,668
$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.
168
$2,030,538,172
$0
Internal Audits
Audits with Management Decisions made prior to March 31, 2014, but
with Final Action not taken as of March 31, 2015
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.
05/29/2015
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.
05/29/2015
A120001PFR13007
Audit of GSA's
Controls over the
National Capital
Region's
Reimbursable Work
Authorizations
09/11/2013
$0
$0
Audit is in the
implementation
stage.
10/30/2015
Audits under Appeal/Litigation
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
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
A130034P4X13032
Caddell Construction Co., Inc
03/28/2013
$0
$5,001,544
A130093P4X14045
Amthor Steel, Inc.
06/26/2014
$0
$2,065,356
REPORT NUMBER
NAME OF
CONTRACTOR
DATE
OF
REPORT
MANAGEMENT DECISION
AMOUNTS
REASON FOR
NO
FINAL ACTION
Disallowed
Costs
Better Use
Funds
A100193Q4X11014
The Stratix Corporation
11/24/2010
$41,168
$0
Price/Settlement
Negotiated -
Negotiations have
been completed
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
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
Price/Settlement
Negotiated -
Negotiations have
been completed
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
REPORT NUMBER
NAME OF
CONTRACTOR
DATE
OF
REPORT
MANAGEMENT DECISION
AMOUNTS
REASON FOR
NO
FINAL ACTION
Disallowed
Costs
Better Use
Funds
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
A110108Q4X11063
Protective Products
Enterprises
06/13/2011
$0
$553,510
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
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
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
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
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
A110136Q3X11088
Konica Minolta Business
Solutions U.S.A., Inc.
08/25/2011
$11,599
$35,625,685
Price/Settlement
Negotiated -
Negotiations have
been completed
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
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
REPORT NUMBER
NAME OF
CONTRACTOR
DATE
OF
REPORT
MANAGEMENT DECISION
AMOUNTS
REASON FOR
NO
FINAL ACTION
Disallowed
Costs
Better Use
Funds
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
A110178Q3X12014
Sharp Electronics
Corporation
12/22/2011
$49,653
$6,752,403
Price/Settlement
Negotiated -
Negotiations have
been completed
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
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
REPORT NUMBER
NAME OF
CONTRACTOR
DATE
OF
REPORT
MANAGEMENT DECISION
AMOUNTS
REASON FOR
NO
FINAL ACTION
Disallowed
Costs
Better Use
Funds
A120075P4X12020
Enola Contracting Services,
Inc.
02/08/2012
$0
$121,312
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
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
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
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
In Negotiation -
Negotiations are
proceeding
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
REPORT NUMBER
NAME OF
CONTRACTOR
DATE
OF
REPORT
MANAGEMENT DECISION
AMOUNTS
REASON FOR
NO
FINAL ACTION
Disallowed
Costs
Better Use
Funds
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
A090140Q6X10081
Systems Research and
Applications Corporation
08/24/2010
$392,685
$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
A090133Q7X11005
SeaArk Marine, Inc.
10/27/2010
$1,130,227
$0
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
A120066Q5X13004
Life Fitness, Inc.
11/02/2012
$0
$29,300,000
Price/Settlement
Negotiated -
Negotiations have
been completed
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
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
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
A120147Q2X13028
Harris Corporation, RF
Communications Division
03/20/2013
$44,256
$53,543,014
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and contractor
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
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and contractor
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
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
Litigation in
Process - The
contractor has
appealed the
Contracting
Officer's decision
and the audit is
now in the litigation
process
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
A110160Q7X13042
i2, Incorporated
05/28/2013
$2,064,798
$0
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
REPORT NUMBER
NAME OF
CONTRACTOR
DATE
OF
REPORT
MANAGEMENT DECISION
AMOUNTS
REASON FOR
NO
FINAL ACTION
Disallowed
Costs
Better Use
Funds
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
A120134Q6X13059
International Business
Machines Corporation
07/31/2013
$0
$482,854,052
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and contractor
A120156Q4X13065
General Dynamics
Information Technology,
Inc.
09/09/2013
$60,328
$49,343,348
Price/Settlement
Negotiated -
Negotiations have
been completed
between
Contracting Officer
and contractor
A130077Q4X14004
Intuitive Research and
Technology Corporation
10/29/2013
$162
$34,503,942
Price/Settlement
Negotiated -
Negotiations have
been completed
between
Contracting Officer
and contractor
A130087Q3X14002
Accenture Federal Services
LLC
10/24/2013
$0
$10,772,764
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
A120087Q9X13067
Eaton Corporation
09/30/2013
$0
$20,041,706
Price/Settlement
Negotiated -
Negotiations have
been completed
between
Contracting Officer
and contractor
A130086Q3X14001
Sea Box, Inc.
10/24/2013
$3,032
$0
Price/Settlement
Negotiated -
Negotiations have
been completed
between
Contracting Officer
and contractor
A130079Q5X14008
Allsteel Inc.
12/12/2013
$0
$5,900,000
Price/Settlement
Negotiated -
Negotiations have
been completed
between
Contracting Officer
and contractor
A130073Q4X14010
Torch Technologies, Inc.
12/20/2013
$34,379
$22,243,159
Price/Settlement
Negotiated -
Negotiations have
been completed
between
Contracting Officer
and contractor
A130088Q2X14013
Provengo LLC
12/20/2013
$0
$0
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and contractor
A130080QAX14015
Intelsat General
Corporation
01/24/2014
$0
$35,211,852
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
A120143Q2X14016
Centra Technology, Inc.
01/27/2014
$0
$4,508,222
Price/Settlement
Negotiated -
Negotiations have
been completed
between
Contracting Officer
and contractor
A100210Q5X13064
Labat-Anderson, Inc.
09/04/2013
$0
$517,335
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and contractor
A130085Q3X13063
Bart & Associates, Inc.
09/06/2013
$130,030
$48,373,190
In Negotiation -
Negotiations are
proceeding
between
Contracting Officer
and contractor
Glossary of Terms
The following definitions, based on the Inspector General Act Amendments 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
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U.S. General Services Administration
1800 F Street, NW
Washington, DC 20405
www.gsa.gov