U.S. General Services Administration
Administrator's Semiannual
Management Report to Congress
Report No.57
April 1, 2017 - September 30, 2017
U.S. General Services Administration
Timothy O. Horne
Acting Administrator
Office of Administrative Services
Cynthia A. Metzler
Chief Administrative Services Officer
Office of Executive Secretariat and Audit Management
Theresa Ottery
Director
October 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.
57, Washington, DC 20405.
Copies of this report can be obtained using any of the following:
Mail: Office of Administrative Services, Office of Executive Secretariat and Audit
Management
U.S. General Services Administration
1800 F Street, NW
Washington, DC 20405
E-mail: GAO-IGAuditMgmtDiv@gsa.gov
Online: Semiannual Report to 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 6
Audits with Disallowed Costs 7
Audits with Better Use Funds (Potential Cost Savings) 8
Audits under Appeal/Litigation 9
Contract Audits 10
Internal Audits 18
Open OIG Recommendations Not Fully Resolved as of September 30, 2017 19
Glossary of Terms 30
Appendix 32
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 April 1, 2017, through September 30, 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 April 1, 2017, GSA had 132 contract and internal audit reports pending final action.
These reports contained financial recommendations totaling $1,687,881,808.
- Financial recommendations for 113 contract audits totaled $1,687,881,808.
- Financial recommendations for 19 internal audits with no monetary returns.
Between April 1, 2017, and September 30, 2017, GSA finalized management decisions
on 33 audit reports concerning nationwide GSA programs and operations.
- A total of $1,579,886 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 24 of the 33 audits.
- In 23 of the 33 audits, the OIG recommended that $108,031,741 could be used
more effectively (better use funds) if management took action to implement and
complete the OIG recommendations.1
During this 6-month reporting period, GSA successfully took final action on 43 audits.
These audits represent the potential recovery of $63,724,876 in Government funds and
the identification of $909,472,406 in potential future savings.
As of September 30, 2017, GSA had 122 open audit reports. Three of these audits involve
claims under appeal or in litigation.
1 The Appendix on page 32 reflects audits completed by the GSA-OIG Office of Audits. The above count reflects audits completed by the
GSA-OIG Office of Audits and the GSA-OIG Office of Inspections.
Overview
This report, GSA's 57th 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 and Federal Acquisition Service provide government-
wide delivery of real estate, acquisition, and technology services, 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 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, 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 the audit
follow-up program. This position has overall responsibility for ensuring the adequacy of
the agency's audit follow-up program, 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.
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 to implement audit recommendations.
Heads of Services and Staff Offices
Heads of Services and Staff Offices, 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 SEPTEMBER 30, 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
132
33
Disallowed
Costs
$115,961,282
$ 1,579,886
C. Audit reports on which final action was
taken during the reporting period.
(i) the dollar value of disallowed costs
- collections $19,761,118
- offset $1,574,737
- property in lieu of cash... $0
- surplus $1,198,340
- other .............................. $0
(ii) the dollar value of disallowed costs
that were written off by management.
43
$ 63,724,876
$ 22,534,195
$ 41,190,681
D. Audit reports for which no final action
122
$ 57,412,203
has been taken by the end of the reporting
period and audit reports issued during this
reporting period.
Final action for the six-month Number of Audit
Ending SEPTEMBER 30, 2017 Reports
A. Audit reports for which final 132
action had not been taken by the
commencement of the reporting
period.
B. Audit reports on which 33
management decisions were
made during the reporting period.
No budget Impact
(Actual and Estimated)
$1,571,920,526
$108,031,741
Budget
Impact
$0
$0
C. Audit reports on which final
43
$909,472,406
$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
$909,472,406
''funds to be put to better use'' as
agreed to by GSA management
and the OIG.
D. Audit reports for which no
122
$716,561,750
$0
final action has been taken by
the end of the reporting period
and audit reports issued during
this reporting period.
Audits under Appeal/Litigation
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
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
process - An
investigation has
been opened by
either the OIG or
the 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
A120071Q2X13002
ICF Z-Tech, Inc.
10/16/2012
$14,580
In negotiation -
Negotiations are
proceeding
between
Contracting Officer
and contractor
A130071Q5X14018
Industries for the Blind, Inc.
01/31/2014
$306,596
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
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
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
A140132Q7X14061
A-T Solutions, Inc.
09/16/2014
$239,961
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
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
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
$539,872
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
A140074Q6X15037
TASC, Inc.
06/10/2015
$1,886,901
In negotiation -
Negotiations are
proceeding
between
Contracting Officer
and contractor
A150071Q7X1504
CAS, Inc.
07/08/2015
$21,171
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
A150077QAX16006
Office Depot, Inc.
11/12/2015
$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
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
$35,292
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
A150069Q5X16012
Research Triangle Institute
12/03/2015
$61,375
In negotiation -
Negotiations are
proceeding
between
Contracting Officer
and contractor
A090175Q4X16011
Square One Armoring
Services
12/03/2015
$0
In negotiation -
Negotiations are
proceeding
between
Contracting Officer
and contractor
A140055Q2X1601
SRC, Inc.
12/07/2015
$637,423
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
A150142Q7X16015
IDSC Holdings, LLC
12/14/2015
$36,620
Price/settlement
negotiated -
Negotiations
have been
completed
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
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
REPORT
NUMBER NAME
OF
CONTRACTOR
DATE OF
REPORT
MANAGEMENT DECISION
AMOUNTS
REASON FOR
NO
FINAL ACTION
Disallowed
Costs
Better Use
Funds
A140147P2X16030
ASM Mechanical
Systems, Inc.
03/30/2016
$1,120,928
In negotiation -
Negotiations are
proceeding
between
Contracting Officer
and contractor
A150097Q9X16033
Acumen, LLC
04/18/2016
$0
In negotiation -
Negotiations are
proceeding
between
Contracting Officer
and contractor
A160029QAX16036
Delta Research
Associates, Inc.
04/26/2016
$112,884
In negotiation -
Negotiations are
proceeding
between
Contracting Officer
and contractor
A150095Q3X16037
DRS Technical
Services, Inc.
04/27/2016
$0
In negotiation -
Negotiations are
proceeding
between
Contracting Officer
and contractor
A160026Q7X16039
Skyline Unlimited, Inc.
05/12/2016
$35,373
In negotiation -
Negotiations are
proceeding
between
Contracting Officer
and contractor
A150073Q2X16040
Simmonds
Precision
Products, Inc.
05/23/2016
$531
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
A150085Q9X16043
Mathematica Policy
Research, Inc.
06/24/2016
$172,827
In negotiation -
Negotiations are
proceeding
between
Contracting Officer
and contractor
A150068Q4X16045
COLSA Corporation
06/30/2016
$0
Price/settlement
negotiated -
Negotiations have
been completed
between
Contracting Officer
A150107Q6X16056
Radiance
Technologies, Inc.
08/04/2016
$529,097
Unresolved -
Agreement has not
been reached
between OIG and
Contracting Officer
on the Decision
Record
A160093Q7X16074
United Liquid Gas
Company
09/19/2016
$3,321,947
In negotiation -
Negotiations are
proceeding
between
Contracting Officer
and contractor
Financial recommendations are not included for internal audits or actions that are not completed.
REPORT NUMBER
TITLE OF REPORT
DATE OF
REPORT
MANAGEMENT DECISION
AMOUNTS
REASON FOR NO
FINAL ACTION
PROJECTED
COMPLETION
DATE
Disallowed
Costs
Better Use
Funds
A140008Q9P15002
FAS Needs to
Strengthen its Training
and Warranting
Program for
Contracting Officers
06/26/2015
$0
Audit is in the
Implementation
Stage
06/25/2018
A150033Q9P16002
The Federal Acquisition
Service Needs a
Comprehensive Human
Capital Plan for its
Contract Specialist
Workforce
07/22/2016
$0
Audit is in the
Implementation
Stage
10/31/2017
A120026Q6P16003
IT Reseller Contracts
Present Significant
Challenges for GSA's
Schedules Program
07/22/2016
$0
Audit is in the
Implementation
Stage
12/04/2017
A150009P5R16003
PBS Energy Savings
Performance Contract
Awards May Not Meet
Savings Goals
09/27/2016
$0
Audit is in the
Working Stage
TBD after
negotiations
are completed
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
A150033Q9P16002
The Federal Acquisition
Service Needs a
Comprehensive Human
Capital Plan for its
Contract Specialist
Workforce.
07/22/2016
002
Evaluate and update the
comprehensive human
capital plan on an annual
basis.
10/31/2017
10/31/2017
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: (a)
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
12/04/2017
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
12/04/2017
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
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
12/04/2017
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
12/04/2017
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
12/04/2017
A150009P5R16003
PBS Energy Savings
Performance Contract
Awards May Not Meet
Savings Goals.
09/27/2016
001
Witness and
independently verify
baselines developed by
the energy company.
GSA is awaiting approval
from OIG on the submitted
response package.
A150009P5R16003
PBS Energy Savings
Performance Contract
Awards May Not Meet
Savings Goals.
09/27/2016
001b
Document their
witnessing of the energy
company's on-site
baseline measurements.
A150009P5R16003
PBS Energy Savings
Performance Contract
Awards May Not Meet
Savings Goals.
09/27/2016
002
Ensure all
components of the
energy-related savings
calculations, including
O&M savings, are
accurate and can be
reconciled to the task
order schedules.
Number and
Title of Report
Report
Issue Date
Recommendation
Number
Entire
Recommendation
Original
Due Date
Current Due
Date
A150009P5R16003
PBS Energy Savings
Performance Contract
Awards May Not Meet
Savings Goals.
09/27/2016
002b
Renegotiate O&M
contracts to achieve the
estimated savings on
existing ESPCs with
O&M savings.
GSA is awaiting approval
from OIG on the submitted
response package.
A150009P5R16003
PBS Energy Savings
Performance Contract
Awards May Not Meet
Savings Goals.
09/27/2016
002c
Develop and implement
policy and procedures to
confirm savings from
GSA-managed O&M
contracts are achievable
at time of award for
future ESPCs.
A150009P5R16003
PBS Energy Savings
Performance Contract
Awards May Not Meet
Savings Goals.
09/27/2016
003
Implement training on
price reasonableness
determinations for ESPC
contracting, including the
development and use of
independent government
estimates, to improve
compliance with
regulations and
guidance.
A150009P5R16003
PBS Energy Savings
Performance Contract
Awards May Not Meet
Savings Goals.
09/27/2016
004
Align each ESPC task
order term with the PBS
Portfolio Strategy holding
period for the asset.
A150009P5R16003
PBS Energy Savings
Performance Contract
Awards May Not Meet
Savings Goals.
09/27/2016
005
Require written
justifications for not using
the DOE super ESPC if
GSA awards stand-alone
ESPCs in the future. The
ESPC Program
Management Office
should review and
approve all such
justifications.
A150009P5R16003
PBS Energy Savings
Performance Contract
Awards May Not Meet
Savings Goals.
09/27/2016
005b
Ensure future ESPCs
comply with competition
requirements for added
O&M services or receive
management approval
for non-competitive
procedures.
Number and
Title of Report
Report
Issue Date
Recommendation
Number
Entire
Recommendation
Original
Due Date
Current Due
Date
A150009P5R16003
PBS Energy Savings
Performance Contract
Awards May Not Meet
Savings Goals.
09/27/2016
005c
Ensure acquisition plans
for future stand-alone
ESPCs are reviewed by
the Head of Contracting
Activity.
GSA is awaiting approval
from OIG on the submitted
response package.
A150009P5R16003
PBS Energy Savings
Performance Contract
Awards May Not Meet
Savings Goals.
09/27/2016
006
Require solicitations for
future stand-alone
ESPCs to state that
Measurement and
Verification Plans must
be approved prior to
contract award.
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
Number and
Title of Report
Report
Issue Date
Recommendation
Number
Entire
Recommendation
Original
Due Date
Current Due
Date
A150132P4R17001
GSA's Decisions to
Vacate and Renovate the
Leased Federal
Courthouse in Pensacola
Are Based on Faulty
Premises.
10/25/2016
001
Reanalyze options for
housing the tenants of
the 1 North Palafox
Street courthouse. As
part of this analysis, PBS
should: Ensure a
comparison of equivalent
options is reflected;
Ensure the designs for
the renovation, new, and
leased construction
options meet current
building standards;
Ensure the designs for
the new and leased
construction options
comply with the U.S.
Courts Design Guide;
Ensure the estimated
reversion values of the
new and leased
courthouse options are
developed by an
independent appraiser;
ensure lease-buyout and
other potential settlement
costs are incorporated;
and Develop and
incorporate project
schedules into the
financial analysis that are
based on historical
performance of projects
with similar scope or
scale.
GSA and OIG are still
negotiating on
implementation efforts.
A150132P4R17001
GSA's Decisions to
Vacate and Renovate the
Leased Federal
Courthouse in Pensacola
Are Based on Faulty
Premises.
10/25/2016
002
Suspend all contracts
and procurements for the
prospectus project until
PBS secures ownership
of the 1 North Palafox
Street courthouse, if
PBS's revised analysis
demonstrates that
ownership is in the best
interest of the
government.
Number and
Title of Report
Report
Issue Date
Recommendation
Number
Entire
Recommendation
Original
Due Date
Current Due
Date
A150132P4R17001
GSA's Decisions to
Vacate and Renovate the
Leased Federal
Courthouse in Pensacola
Are Based on Faulty
Premises.
10/25/2016
003
Develop and implement
a solution to address the
tenants' security, privacy,
and storage concerns at
the 25 West Government
Street leased space.
GSA and OIG are still
negotiating on
implementation efforts.
A150132P4R17001
GSA's Decisions to
Vacate and Renovate the
Leased Federal
Courthouse in Pensacola
Are Based on Faulty
Premises.
10/25/2016
004
Implement an interim
solution to address
security, water intrusion,
and mold issues, as well
as sanitary conditions; at
the 1 North Palafox
Street courthouse.
A130003P2R17002
Procurement and Internal
Control Issues Exist
within PBS's
Brooklyn/Queens/Long
Island Service Center
01/20/2017
006
Determine the corrective
actions needed to
remediate the missing
and incorrect documents
that were identified by
the audit team's review
of the contract files.
09/11/2017
11/10/2017
A160037Q3P17001
Audit of Price Evaluations
and Negotiations for the
Professional Services
Schedule Contracts
03/21/2017
001
Direct the Office of
Professional Services
and Human Capital
Categories to perform a
formal price analysis on
PSS migrated contracts
to determine if the
contract pricing is fair
and reasonable.
07/31/2017
07/31/2017
A160037Q3P17001
Audit of Price Evaluations
and Negotiations for the
Professional Services
Schedule Contracts
03/21/2017
002
Direct the Office of
Professional Services
and Human Capital
Categories to
discontinue the use of
the "Pre and Price
Negotiation
Memorandum" template
and use the separate
Pre-Negotiation
Memorandum and Price
Negotiation
Memorandum mandated
by FAS Instructional
Letter 2011-02.
07/31/2017
07/31/2017
Number and
Title of Report
Report
Issue Date
Recommendation
Number
Entire
Recommendation
Original
Due Date
Current Due
Date
A160037Q3P17001
Audit of Price Evaluations
and Negotiations for the
Professional Services
Schedule Contracts
03/21/2017
003
Develop and issue
guidance to contracting
staff on documenting
detailed price analyses,
including reviews of
comparable labor
categories and rates, in
order to support
contracting actions in the
contract file.
12/29/2017
12/29/2017
A160024PRR17004
Audit of PBS's Planning
and Funding for
Exchange Projects
03/30/2017
001
Update exchange
guidance to:
a. Require financial and
business case analyses
that fully quantify risk
for all potential
exchanges
when making the
decision to exchange,
dispose of, or retain a
property. If an
exchange is pursued,
require that PBS
continue to quantify risk
throughout the project;
b. Address funding for
change orders, support
costs, and funding
shortages; as well as
the use of cash
equalization; and
c. Require PBS to
estimate support costs
and identify funding
sources when planning
an exchange.
09/29/2017
12/29/2017
A170016P6R17005
The Robert A. Young
Federal Building Needs
Vehicle Collision
Prevention Controls
05/10/2017
001
Immediately install
barriers or other vehicle
collision prevention
controls on the RAY
building's north side and
northeast corner.
GSA is awaiting approval
from OIG on the submitted
response package.
A170016P6R17005
The Robert A. Young
Federal Building Needs
Vehicle Collision
Prevention Controls
05/10/2017
002
Assess the overall
building site to ensure
that it is adequately
protected from vehicular
threats.
Number and
Title of Report
Report
Issue Date
Recommendation
Number
Entire
Recommendation
Original
Due Date
Current Due
Date
A160118Q3P17003
GSA Lacks Controls to
Effectively Administer the
Computers for Learning
Website
07/13/2017
001
Design and implement
controls that prevent
ineligible organizations
from being granted
access to GSA's CFL
website and receiving
donated IT equipment
intended for eligible
schools and educational
nonprofit organizations.
GSA is awaiting approval
from OIG on the submitted
response package.
A160118Q3P17003
GSA Lacks Controls to
Effectively Administer the
Computers for Learning
Website
07/13/2017
002
Establish a requirement
that federal agencies be
informed of their
responsibility to validate
an organization's
eligibility prior to making
donations using GSA's
CFL website.
A160112OTF17002
Limited Scope Audit of
the System Security
Controls for Enterprise
Acquisition System
Integrated (EASi)
08/09/2017
001
Ensure that the security
control weaknesses
identified in our audit are
mitigated in accordance
with applicable
standards, guidelines,
and recommendations
established by NIST and
CIS.
GSA is awaiting approval
from OIG on the submitted
response package.
A160112OTF17002
Limited Scope Audit of
the System Security
Controls for Enterprise
Acquisition System
Integrated (EASi)
08/09/2017
002
Review and apply GSA's
IT baseline security
hardening requirements
to EASi's server
operating systems, web
application, and
database.
A150009P5R17006
PBS National Capital
Region's $1.2 Billion
Energy Savings
Performance Contract for
White Oak was Not
Awarded or Modified in
Accordance with
Regulations and Policy
08/24/2017
001
Take immediate action to
expedite the
procurement of a new
O&M contract that
adheres to competition
requirements specified in
the Competition in
Contracting Act of 1984
and the Federal
Acquisition Regulation.
GSA is developing its
response package for
submission to OIG.
Number and
Title of Report
Report
Issue Date
Recommendation
Number
Entire
Recommendation
Original
Due Date
Current Due
Date
A150009P5R17006
PBS National Capital
Region's $1.2 Billion
Energy Savings
Performance Contract for
White Oak was Not
Awarded or Modified in
Accordance with
Regulations and Policy
08/24/2017
002
Determine and
implement the
appropriate corrective
action needed for PBS
NCR personnel's
non-compliance with
competition
requirements.
GSA is developing its
response package for
submission to OIG.
A150009P5R17006
PBS National Capital
Region's $1.2 Billion
Energy Savings
Performance Contract for
White Oak was Not
Awarded or Modified in
Accordance with
Regulations and Policy
08/24/2017
003
Institute the necessary
management controls to
ensure that
procurements for the
campus comply with the
Competition in
Contracting Act of 1984
and Federal Acquisition
Regulation 6.3.
A150009P5R17006
PBS National Capital
Region's $1.2 Billion
Energy Savings
Performance Contract for
White Oak was Not
Awarded or Modified in
Accordance with
Regulations and Policy
08/24/2017
004A
Implement internal
controls to ensure
ESPCs comply with DOE
regulations and guidance
including verifying
that costs of
implementing energy
conservation measures
are paid for from the
resulting cost savings.
A150009P5R17006
PBS National Capital
Region's $1.2 Billion
Energy Savings
Performance Contract for
White Oak was Not
Awarded or Modified in
Accordance with
Regulations and Policy
08/24/2017
004B
Implement internal
controls to ensure
ESPCs comply with DOE
regulations and guidance
including witnessing
and independently
verifying that
baselines developed by
the energy company are
accurate.
A150009P5R17006
PBS National Capital
Region's $1.2 Billion
Energy Savings
Performance Contract for
White Oak was Not
Awarded or Modified in
Accordance with
Regulations and Policy
08/24/2017
004C
Implement internal
controls to ensure
ESPCs comply with DOE
regulations and guidance
including
verifying that the financial
Selection Memorandum
from the energy
company is certified as
being the best value for
the government.
Number and
Title of Report
Report
Issue Date
Recommendation
Number
Entire
Recommendation
Original
Due Date
Current Due
Date
A150009P5R17006
PBS National Capital
Region's $1.2 Billion
Energy Savings
Performance Contract for
White Oak was Not
Awarded or Modified in
Accordance with
Regulations and Policy
08/24/2017
005A
Implement training for
PBS NCR personnel
responsible for the
preparation of acquisition
plans.
GSA is developing its
response package for
submission to OIG.
A150009P5R17006
PBS National Capital
Region's $1.2 Billion
Energy Savings
Performance Contract for
White Oak was Not
Awarded or Modified in
Accordance with
Regulations and Policy
08/24/2017
005B
Implement training for
PBS NCR personnel
responsible for price
reasonableness
determinations for ESPC
contracting, including the
development and use of
independent government
estimates.
A150009P5R17006
PBS National Capital
Region's $1.2 Billion
Energy Savings
Performance Contract for
White Oak was Not
Awarded or Modified in
Accordance with
Regulations and Policy
08/24/2017
005C
Implement training for
PBS NCR personnel
responsible for Contract
file documentation
requirements.
A150009P5R17006
PBS National Capital
Region's $1.2 Billion
Energy Savings
Performance Contract for
White Oak was Not
Awarded or Modified in
Accordance with
Regulations and Policy
08/24/2017
005D
Implement training for
PBS NCR personnel
responsible for
Compliance with
requirements to hold a
Preaward Review Board
review prior to award, or
if waived, a Postaward
Review Board review for
applicable task orders.
A150009P5R17006
PBS National Capital
Region's $1.2 Billion
Energy Savings
Performance Contract for
White Oak was Not
Awarded or Modified in
Accordance with
Regulations and Policy
08/24/2017
006
Once the procurement of
a new O&M contract is
secured, as stated in
Finding 1, include the
Limitation of Government
Obligation clause on all
non-ESPC O&M
services.
Number
and Title of Report
Report
Issue Date
Recommendation
Number
Entire
Recommendation
Original
Due Date
Current Due
Date
A170025QTP17004
Audit of Limited Scope
Audit of GSA's
Centralized Household
Goods Traffic
Management Program
Tariff and Tender of
Service
09/28/2017
001
Delete the shuttle service
exception.
GSA is developing its
response package for
submission to OIG.
A170025QTP17004
Audit of Limited Scope
Audit of GSA's
Centralized Household
Goods Traffic
Management Program
Tariff and Tender of
Service
09/28/2017
002
Determine if the tariff
needs a new provision to
address the use of a
smaller truck.
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;
* 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 completions of all actions that GSA management concluded
in its management decision were necessary with respect to the findings and
recommendations included in the audit report. In the event that GSA 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.
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