U.S. General Services Administration
Administrator's Semiannual
Management Report to Congress
Report No.56
October 1, 2016 � March 31, 2017
U.S. General Services Administration
Timothy O. Horne
Acting Administrator
Office of Administrative Services
Cynthia A. Metzler
Chief Administrative Services Officer
GAO/IG Audit Management Division
Theresa Ottery
Acting Director
April 2017
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
Management Division, Administrator's Semiannual Management Report to the Congress, No.
56, Washington, DC 20405.
Copies of this report can be obtained using any of the following:
Mail: Office of Administrative Services, GAO/IG Audit Management Division
U.S. General Services Administration
1800 F Street, NW
Washington, DC 20405
E-mail: GAO-IGAuditMgmtDiv@gsa.gov
Online: Semiannual Report to the Congress
Telephone: (202) 501-1795
Contents
Synopsis of Audit Activity 4
Overview 5
U.S. General Services Administration Organization 5
Organization of Audit Follow-Up Program 6
Agency Audit Follow-up Official 6
The Chief Administrative Services Officer (CASO) 6
Heads of Services and Staff Offices, Regional Administrators, and Commissioners 6
Audits with Disallowed Costs 7
Audits with Better Use Funds (Potential Cost Savings) 8
Contract Audits 9
Internal Audits 16
Open OIG Recommendations Not Fully Resolved as of March 31, 2017 17
Audits under Appeal/Litigation 24
Glossary of Terms 25
Appendix 27
Synopsis of Audit Activity
The Inspector General Act of 1978, as amended, requires the Administrator of General
Services to report directly to 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 period of October 1, 2016, through March 31, 2017. Included in the
report are summaries of GSA audit activities concerning the following:
� GSA implementation of OIG audit report recommendations.
� Final actions not taken on audits 1 year after the date of the management decision.
� Audit reports and audit actions involving financial recommendations, including
disallowed costs, funds to be put to better use (better use funds), or both.
On October 1, 2016, GSA had 136 contract and internal audit reports pending final
action. These reports contained financial recommendations totaling $1,562,255,668.
� Financial recommendations for115 contract audits totaled $1,562,068,774.
� Financial recommendations for 21 internal audits totaled $186,894.
Between October 1, 2016, and March 31, 2017, GSA finalized management decisions
on 46 audit reports concerning nationwide GSA programs and operations.
� In 40 of these audits, a total of $18,491,443 in pre-award contracts, post-award
contracts, and internal program spending was found to have been incorrectly
charged to the Government and determined to be disallowed costs.
� In 34 of the 46 audits, it was recommended that $193,924,595 could be used more
effectively (better use funds) if management took action to implement and complete
the OIG recommendations (see Appendix).
During this 6-month reporting period, GSA successfully took final action on 45 audits.
These audits represent the potential recovery of $6,618,084 in Government funds and
the identification of $186,987,388 in potential future savings.
As of March 31, 2017, GSA had 132 open audit reports. Four of these audits involve
claims under appeal or in litigation.
Overview
This report, GSA�s 56th report to Congress since the implementation of the reporting
requirement, presents management's perspective on audit resolution and follow-up activity
for the semiannual reporting period, in addition to general statistical summaries. The data
in the report indicates that GSA's audit monitoring and management activities continue to
play a significant role in the efficient management of GSA operations, the
accomplishment of the agency mission, and the effective use of taxpayer dollars.
U.S. General Services Administration Organization
GSA�s Public Buildings Service, Federal Acquisition Service, and Technology
Transformation Service provide government-wide delivery of real estate, acquisition,
and technology services, respectively, while GSA�s Office of Government-wide Policy
manages the development of certain government-wide policies and regulations, as well
as those for GSA only. GSA�s 11 regions provide local support to Federal agencies
nationwide, while GSA�s several staff offices provide support to other GSA
organizations and to other Federal agencies and the public.
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 Service 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 tracking and managing audit recommendations.
In addition, GSA's senior management is committed to ensuring that appropriate
corrective action is taken. Agency managers have the responsibility to act on the
auditor's recommendations, with the audit resolution process being supervised by the
agency's 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
overseeing the audit follow-up program. 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.
This position 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 those 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 to implement audit recommendations.
Heads of Services and Staff Offices and Regional Administrators
Heads of Services and Staff Offices and, as appropriate, 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, 2017
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
136
46
Disallowed
Costs
$101,955,724
$18,491,443
C. Audit reports on which final action was
taken during the reporting period.
(i) the dollar value of disallowed costs
- collections $522,948
- offset $196,614
- property in lieu of cash. $0
- surplus $319,397
- other $11,768
(ii) the dollar value of disallowed costs
that were written off by management.
45
$6,618,084
$1,050,727
$5,567,357
D. Audit reports for which no final action
132
$61,919,260
has been taken by the end of the reporting
period and audit reports issued during this
reporting period.
Final action for the six months Number of Audit
Ending March 31, 2017 Reports
A. Audit reports for which final 136
action had not been taken by the
commencement of the reporting
period.
B. Audit reports on which 46
management decisions were
made during the reporting period.
No budget Impact
(Actual and Estimated)
$1,562,068,774
$193,924,595
Budget
Impact
$0
$0
C. Audit reports on which final
45
$186,987,388
$0
action was taken during the
reporting period.
(i) the actual dollar value of
$0
recommendations that were
actually completed.
(ii) the actual dollar value of
$0
recommendations that
management has subsequently
concluded should not or could not
be implemented or completed.
(iii) the actual dollar value of
$0
recommendations that
management has subsequently
concluded should not or could not
be determined (calculated).
(iv) the estimated dollar value of
$186,987,388
''funds to be put to better use'' as
agreed to by GSA management
and the OIG.
D. Audit reports for which no
132
$1,577,355,421
$0
final action has been taken by
the end of the reporting period
and audit reports issued during
this reporting period.
REPORT NUMBER
NAME OF
CONTRACTOR
DATE OF
REPORT
MANAGEMENT DECISION
AMOUNTS
REASON FOR
NO
FINAL ACTION
Disallowed
Costs
Better Use
Funds
A090042Q9X09019
Postaward Audit Report on
Direct Costs Incurred on Trilogy
Project: Computer Sciences
Corporation, Contract Number
GS00-T99-ALD204
12/29/2008
$14,951,923
Investigation in
progress � An
investigation has
been opened by
either OIG or Justice
Department
regarding actions
taken by the
contractor
A110088Q3X11079
Global Protection USA, Inc.
07/28/2011
$29,337
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A100119Q6X11081
Noble Sales Co., Inc.
08/03/2011
$0
Price/settlement
negotiated -
Negotiations have
been completed
between Contracting
Officer and
contractor
A110209Q6X12057
Propper International
Sales, Inc.
08/15/2012
$2,063,375
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A120083P9X12059
M.A. Mortenson Company
08/21/2012
$0
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A120071Q2X13002
ICF Z-Tech, Inc.
10/16/2012
$14,580
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A120150Q3X13018
Grant Thornton LLP
01/24/2013
$3,848
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A120162Q5X13036
Kforce Government
Solutions, Inc.
04/17/2013
$147,666
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
A130071Q5X14018
Industries for the Blind, Inc.
01/31/2014
$306,596
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A130099P4X14011
HCBeck, Ltd.
03/24/2014
$0
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A130049Q4X14024
SimplexGrinnell LP
03/31/2014
$0
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A130136Q3X14026
Fisher Scientific Company
LLC
04/14/2014
$0
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A110139Q9X14028
Alaska Structures,
Incorporated
04/24/2014
$1,999,255
Investigation in
process - An
investigation has
been opened by
either the OIG or
the Justice
Department
regarding actions
taken by the
contractor
A140057Q3X14043
ATD-American Company
06/19/2014
$4,895
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A140126P4X14044
Hoar-Christman, LLC
06/26/2014
$0
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A130043Q2X14049
ICF Z-Tech, Inc.
07/16/2014
$2,482,454
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
A130116Q3X14053
Management Concepts,
Inc.
07/29/2014
$14,121
In the process of
collection - GSA is
in the process of
collecting funds
owed the
government from
the contractor
A130125Q4X14056
Sigmatech, Incorporated
08/29/2014
$6,001
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A140132Q7X14061
A-T Solutions, Inc.
09/16/2014
$239,961
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A140122P5X14066
Swinerton Builders
09/29/2014
$237,627
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A140110P4X15003
Suffolk Construction
Company, Inc.
11/10/2014
$0
Litigation in process
- The contractor has
appealed the
Contracting
Officer's decision
and the audit is now
in the litigation
process
A110194Q4X15008
Global Mail, Incorporated
12/03/2014
$3,780,850
Price/settlement
negotiated -
Negotiations have
been completed
between Contracting
Officer and
contractor
A140124P2X15012
Tocci/Driscoll, A Joint
Venture
12/24/2014
$3,230,074
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
A140116P4X15016
City Lights Electrical
Company, Inc.
01/30/2015
$0
Litigation in process
- The contractor has
appealed the
Contracting Officer's
decision and the
audit is now in the
litigation process
A110188Q6X15024
Mythics, Inc.
03/05/2015
$37,667
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A140127Q3X15026
Booz Allen Hamilton Inc.
03/20/2015
$11,997
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A140149P4X15027
Donaldson Interiors, Inc.
03/27/2015
$0
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A140039Q4X15029
High Performance
Technologies Innovations,
LLC
03/31/2015
$0
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A140144P4X15033
Integrity Management
Consulting, Inc.
04/30/2015
$30,958
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A140074Q6X15037
TASC, Inc.
06/10/2015
$1,886,901
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A150071Q7X15041
CAS, Inc.
07/08/2015
$21,171
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
A150124P5X15059
Swinerton Builders
09/14/2015
$0
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A140079Q6X15061
CACI, Inc. - FEDERAL
09/23/2015
$0
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A150002Q3X15063
Government Contract
Solutions, Inc.
09/30/2015
$70,640
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A150083QAX16004
LCG Systems, LLC
11/10/2015
$149,663
Price/settlement
negotiated -
Negotiations have
been completed
between Contracting
Officer and
contractor
A150077QAX16006
Office Depot, Inc.
11/12/2015
$0
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A140118P4X16005
N.B. Kenney
Company, Inc.
11/13/2015
$0
Litigation in process
- The contractor has
appealed the
Contracting Officer's
decision and the
audit is now in the
litigation process
A140064Q3X16007
AllWorld Language
Consultants, Inc.
11/18/2015
$32,292
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A150113P4X16008
Matsuo Engineering
Centerre Construction
A Joint Venture
11/20/2015
$0
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
Financial recommendations are not included for contract awards or actions that are not completed.
REPORT NUMBER
NAME OF
CONTRACTOR
DATE OF
REPORT
MANAGEMENT DECISION
AMOUNTS
REASON FOR
NO
FINAL ACTION
Disallowed
Costs
Better Use
Funds
A090175Q4X16011
Square One Armoring
Services
12/03/2015
$1,850,081
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A150069Q5X16012
Research Triangle Institute
12/03/2015
$61,375
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A140055Q2X16013
SRC, Inc.
12/07/2015
$637,423
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A150142Q7X16015
IDSC Holdings,
LLC
12/14/2015
$36,620
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A140103Q5X16016
General Dynamics
Information
Technology, Inc.
12/15/2015
$0
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A140146P4X16017
Cauldwell Wingate
Company, LLC
12/21/2015
$0
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A140145P4X16018
Pace Plumbing
Corporation
12/28/2015
$0
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A140158P6X16021
Fusco Corporation
01/15/2016
$0
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
Financial recommendations are not included for contract awards or actions that are not completed.
REPORT NUMBER
NAME OF
CONTRACTOR
DATE OF
REPORT
MANAGEMENT DECISION
AMOUNTS
REASON FOR
NO
FINAL ACTION
Disallowed
Costs
Better Use
Funds
A140148P4X16022
Five Star Electric
Corporation
01/29/2016
$0
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A150104Q7X16026
Kipper Tool Company
02/23/2016
$57,177
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A150093Q3X16027
Innovative Management
& Technology
Approaches, Inc.
03/02/2016
$143,095
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A150103QAX16028
CliftonLarsonAllen,
LLP
03/24/2016
$0
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A140147P2X16030
ASM Mechanical
Systems, Inc.
03/30/2016
$1,120,928
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
Internal Audits
Audits with Management Decisions made prior to March 31, 2016, but
with Final Action not taken as of March 31, 2017
Financial recommendations are not included for contract awards or actions that are not completed.
REPORT NUMBER
NAME OF
CONTRACTOR
DATE OF
REPORT
MANAGEMENT DECISION
AMOUNTS
REASON FOR
NO
FINAL ACTION
Disallowed
Costs
Better Use
Funds
A140148P4X16022
Five Star Electric
Corporation
01/29/2016
$0
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A150104Q7X16026
Kipper Tool Company
02/23/2016
$57,177
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A150093Q3X16027
Innovative Management
& Technology
Approaches, Inc.
03/02/2016
$143,095
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A150103QAX16028
CliftonLarsonAllen,
LLP
03/24/2016
$0
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
A140147P2X16030
ASM Mechanical
Systems, Inc.
03/30/2016
$1,120,928
In negotiation -
Negotiations are
proceeding between
Contracting Officer
and contractor
Number and Title of
Report
Report
Issue Date
Recommendation
Number
Entire
Recommendation
Original
Due Date
Current
Due Date
A120164Q9P14005
Improving the
Telecommunications
Order and Invoice
Processing Could Benefit
Customers of the Federal
Acquisition Service's
Network
09/29/2014
001
Improve coordination
and communication
with the Financial
Services Center by
identifying, prioritizing,
and resolving
inventory and billing
variances.
02/11/2016
04/05/2017
A120164Q9P14005
Improving the
Telecommunications
Order and Invoice
Processing Could Benefit
Customers of the Federal
Acquisition Service's
Network
09/29/2014
002
Perform monthly
reconciliations of
significant variances
between
Telecommunications
Order and Pricing
System and Telecom
Invoice Management
System by assigning
adequately trained
Division personnel.
11/30/2016
04/05/2017
A120164Q9P14005
Improving the
Telecommunications
Order and Invoice
Processing Could Benefit
Customers of the Federal
Acquisition Service's
Network
09/29/2014
003
Update and adhere to
planned timelines and
assign trained
personnel to transition
customer accounts to
the local services
acquisition contract.
11/30/2016
04/05/2017
A120164Q9P14005
Improving the
Telecommunications
Order and Invoice
Processing Could Benefit
Customers of the Federal
Acquisition Service's
Network
09/29/2014
004
Identify and address
challenges faced in
the current transition
process in preparation
to the next local
services acquisition
contract to avoid
lengthy delays and
lost opportunities'
savings. Develop a
method to quantify
and monitor COR.
05/31/2017
05/31/2017
A120164Q9P14005
Improving the
Telecommunications
Order and Invoice
Processing Could Benefit
Customers of the Federal
Acquisition Service's
Network
09/29/2014
006
Disclose on GSA
customer invoices
itemized costs
associated with the
Division's
administrative
surcharge fees or
provide these fees as
an attachment to the
invoice.
05/31/2017
05/31/2017
Number and Title of
Report
Report
Issue Date
Recommendation
Number
Entire
Recommendation
Original
Due Date
Current Due
Date
A140008Q9P15002
FAS Needs to
Strengthen its Training
and Warranting
Program for Contracting
Officers
06/26/2015
004
Grant Central Office
portfolio training
coordinators system
access to generate
reports in the Federal
Acquisition Institute
Training Application
System that track
Federal Acquisition
Certification in
Contracting and
warrant compliance
for their assigned
staff.
06/15/2016
06/25/2018
JE16-002
GSA Facilities at Risk:
Security Vulnerabilities
Found in GSA's
Management of
Contractor HSPD-12 PIV
03/30/2016
006
GSA should conduct
a full review of
GCIMS data to verify
that it is current,
accurate, and
complete.
01/31/2017
04/13/2017
JE16-003
GSA Facilities at Risk:
Security Vulnerabilities
Found in GSA's Use of
Facility Specific Building
Badges
03/30/2016
003
GSA should develop
a secure solution for
allowing physical
access to GSA-
managed facilities to
those who are not
required to receive
PIV cards.
03/01/2017
04/28/2017
JE16-003
GSA Facilities at Risk:
Security Vulnerabilities
Found in GSA's Use of
Facility Specific Building
Badges
03/30/2016
004
If the Facility Security
Committees of
facilities where GSA
is not the sole or
primary tenant
decide to allow the
use of building
badges, GSA should
not issue local
building badges on
behalf of tenant
agencies.
02/28/2017
04/28/2017
A120026Q6P16003
IT Reseller Contracts
Present Significant
Challenges for GSA's
Schedules Program
07/22/2016
002
In conjunction with
the FAS Office of
Acquisition
Management,
establish
performance
measures for FAS IT
schedule contracting
staff that reinforce
the objective to
obtain the resellers'
most favored
customer prices for
schedule contract
items during price
negotiations.
03/31/2017
04/28/2017
Number and Title of
Report
Report
Issue Date
Recommendation
Number
Entire
Recommendation
Original
Due Date
Current Due
Date
A120026Q6P16003
IT Reseller Contracts
Present Significant
Challenges for GSA's
Schedules Program
07/22/2016
003A
Improve price
protection for IT
schedule reseller
contracts by
establishing controls
to ensure that
contracting officers
obtain accurate,
current, and
complete
manufacturer
commercial sales
practices information
for offered items
when the resellers
have low or no
commercial sales.
The controls should
ensure that the
specific items
involved are not
awarded until
commercial sales
practices information
is provided.
03/31/2017
04/28/2017
A120026Q6P16003
IT Reseller Contracts
Present Significant
Challenges for GSA's
Schedules Program
07/22/2016
003B
Improve price
protection for IT
schedule reseller
contracts by
establishing controls
to ensure that
deviations to the
Price Reductions
clause do not
diminish price
protections and are
properly approved
by the Head of the
Contracting Activity.
03/31/2017
04/28/2017
A120026Q6P16003
IT Reseller Contracts
Present Significant
Challenges for GSA's
Schedules Program
07/22/2016
004
Cancel IT schedule
reseller contracts
that do not meet the
$25,000 minimum
sales
requirement of the
Schedules Program,
focusing initially on
those with no sales;
or
document the
contract files to
support decisions to
maintain the
contracts.
01/10/2017
04/28/2017
Number and Title of
Report
Report
Issue Date
Recommendation
Number
Entire
Recommendation
Original
Due Date
Current Due
Date
A120026Q6P16003
IT Reseller Contracts
Present Significant
Challenges for GSA's
Schedules Program
07/22/2016
005
Consider increasing
the $25,000
minimum sales
threshold for IT
schedule reseller
contracts to a level
that offsets the
government's cost to
award and
administer a
schedule contract.
01/10/2017
04/28/2017
A120026Q6P16003
IT Reseller Contracts
Present Significant
Challenges for GSA's
Schedules Program
07/22/2016
006
Consider
alternatives to the
current $2,500
minimum payment
clause in IT
schedule
reseller contracts.
03/31/2017
04/28/2017
A150033Q9P16002
The Federal Acquisition
Service Needs a
Comprehensive Human
Capital Plan for its
Contract Specialist
07/22/2016
002
Evaluate and update
the comprehensive
human capital plan
on an annual basis.
10/31/2017
10/31/2017
A150131QTP16004
Audit of FAS's Contractor
Assessments Program
09/21/2016
001
Revise the Industrial
Operations Analyst
Training Manual to
include details on a
risk-based sampling
methodology in
order to improve the
consistency of report
results.
06/30/2017
06/30/2017
A150131QTP16004
Audit of FAS's Contractor
Assessments Program
09/21/2016
003
Establish and
implement a formal,
national training
curriculum for
experienced
Industrial Operations
Analysts to cover, at
a minimum, the
number of required
annual continuing
education hours and
appropriate subject
areas for enhancing
applicable
knowledge and
skills.
06/30/2017
06/30/2017
Number and Title of
Report
Report
Issue Date
Recommendation
Number
Entire
Recommendation
Original
Due Date
Current Due
Date
A150022QTP16005
Audit of Price Evaluations
and Negotiations for
Schedule 70 Contracts
09/28/2016
002
Develop and issue
guidance on holding
negotiations at the
time of contract
award.
03/31/2017
04/14/2017
A150022QTP16005
Audit of Price Evaluations
and Negotiations for
Schedule 70 Contracts
09/28/2016
003
Develop and
implement a risk-
based approach for
negotiating options
for contract
extensions.
03/31/2017
04/14/2017
A150022QTP16005
Audit of Price Evaluations
and Negotiations for
Schedule 70 Contracts
09/28/2016
004
Develop and
implement a
methodology to
conduct periodic
reviews of active
schedule contract
files to determine
whether the files
contain all required
documentation
necessary to
effectively
administer the
contracts and
comply with the
Federal Acquisition
Regulation and FAS
policy.
03/31/2017
04/14/2017
A150022QTP16005
Audit of Price Evaluations
and Negotiations for
Schedule 70 Contracts
09/28/2016
005
Ensure that the
contract documents
that were not
present in the official
contract file during
the audit have been
added.
03/31/2017
04/14/2017
A160028OTF16003
Audit of GSA's Response
to the Personally
Identifiable Information
Breach of September 18,
2015
09/28/2016
002
Develop and
implement a training
program for Agency
Response Team
members regarding
their specific roles
and responsibilities.
04/28/2017
04/28/2017
A160028OTF16003
Audit of GSA's Response
to the Personally
Identifiable Information
Breach of September 18,
2015
09/28/2016
003
Evaluate the
Agency's breach
response capability
by assessing the
technical tools that
will be used to
identify and notify
the individuals
affected by a
potential breach to
ensure they are
operating as
intended.
07/31/2017
07/31/2017
Number and Title of
Report
Report
Issue Date
Recommendation
Number
Entire
Recommendation
Original
Due Date
Current Due
Date
A160028OTF16003
Audit of GSA's Response
to the Personally
Identifiable Information
Breach of September 18,
2015
09/28/2016
003c
Evaluate the
Agency's breach
response capability
by requiring an after
action assessment
of Agency Response
Teams' response to
actual breach
incidents to identify
and incorporate
lessons learned.
07/31/2017
07/31/2017
A160028OTF16003
Audit of GSA's Response
to the Personally
Identifiable Information
Breach of September 18,
2015
09/28/2016
004
Assess policies to
ensure objectives
are clear, roles and
responsibilities are
detailed, and
comprehensive
procedures are
established for
Agency Response
Teams to
communicate and
document relevant
information
necessary for
making decisions
and taking action in
response to a PII
breach. Take
appropriate actions
to address and
correct those areas
identified as
deficient.
07/31/2017
07/31/2017
A160022ORF16004
Review of GSA's
Purchase Card Program
is Vulnerable to Illegal,
Improper, or Erroneous
Purchases
09/30/2016
001a
Enforce GSA Order
OAS 4200.1A by
implementing a
review process to
ensure purchase
cardholders upload
supporting
documentation to
Pegasys and that
Approving Officials
resolve instances of
missing
documentation.
06/30/2017
06/30/2017
Number and Title of
Report
Report
Issue Date
Recommendation
Number
Entire
Recommendation
Original
Due Date
Current Due
Date
A160022ORF16004
Review of GSA's
Purchase Card Program
is Vulnerable to Illegal,
Improper, or Erroneous
Purchases
09/30/2016
001b
Develop a process
to hold purchase
cardholders and
Approving Officials
accountable for not
adhering to
requirements in
GSA Order OAS
4200.1A for
maintaining
documentation and
reviewing
transactions. This
process may include
card suspension,
card removal, or
reassignment of
responsibilities of
the cardholder and
Approving Official.
06/30/2017
06/30/2017
A160022ORF16004
Review of GSA's
Purchase Card Program
is Vulnerable to Illegal,
Improper, or Erroneous
Purchases
09/30/2016
002a
Implement
procedures to
require that OAS
periodically verifies
that its EMS
business rules are
designed as
intended to capture
questionable
charges.
06/30/2017
06/30/2017
A160022ORF16004
Review of GSA's
Purchase Card Program
is Vulnerable to Illegal,
Improper, or Erroneous
Purchases
09/30/2016
002d
Incorporate specific
guidance, in both
policy and training,
on the procedures
Approving Officials
should follow in
responding to
questionable charge
transactions.
06/30/2017
06/30/2017
JE17-001
Evaluation of 18F
10/24/2016
005
Implement a
comprehensive
review of 18F's past
work to ensure
accuracy of all
billings.
08/31/2017
08/31/2017
JE17-001
Evaluation of 18F
10/24/2016
006
Establish reliable
internal controls to
ensure that 18F's
future billings are
accurate.
09/29/2017
09/29/2017
JE17-001
Evaluation of 18F
10/24/2016
007
Ensure that 18F's
billing records are
retained in
accordance with
GSA records
management
standards.
10/13/2017
10/13/2017
REPORT NUMBER
NAME OF CONTRACTOR
DATE OF
REPORT
MANAGEMENT DECISION
AMOUNTS
Disallowed Costs
A140110P4X15003
Suffolk Construction Company, Inc.
11/10/2014
$0
A140116P4X15016
City Lights Electrical Company, Inc.
01/30/2015
$0
A140118P4X16005
N.B. Kenney Company, Inc.
11/13/2015
$0
A160051P4X16038
Motir Services, Inc.
05/11/2016
$0
The following definitions, based on the Inspector General Act Amendment of 1978,
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;
? deobligation 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; or
? any other savings that are specifically identified.
Management Decision. The evaluation by management of the findings and
recommendations included in an audit report and the issuance of a final decision
by management concerning its response to such findings and
recommendations, including planned corrective actions to remedy weaknesses
identified in the report.
Final Action. The 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
U.S. General Services Administration
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Washington, DC 20405
www.gsa.gov