GSA Seal U.S. General Services Administration Front Cover: Picture of the back of the building with new completed construction.jpg ADMINISTRATOR'S SEMIANNUAL MANAGEMENT REPORT TO CONGRESS REPORT NO. 58 OCTOBER 1, 2017 � MARCH 31, 2018 Blank page U.S. General Services Administration Emily W. Murphy Administrator Office of Administrative Services Robert Stafford Chief Administrative Services Officer Audit Management Theresa Ottery Director May 2018 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, Office of Executive Secretariat and Audit Management, Operations Management Division, Administrator's Semiannual Management Report to the Congress, No. 58, 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 Blank page Tbale of Contents Message from the Administrator 5 Overview 6 U.S. General Services Administration Organization 6 Organization of Audit Follow-up Program 7 Agency Audit Follow-up Official 7 The Chief Administrative Services Officer 7 Heads of Services and Staff Offices and Regional Administrators 7 Synopsis of Audit Activity 8 Audits with Disallowed Costs 9 Audits with Better Use Funds (Potential Cost Savings) 10 Audits under Appeal/Litigation 11 Contract Audits 12 Internal Audits 23 Open OIG Recommendations Not Fully Resolved as of March 31, 2018 24 Glossary of Terms 30 Appendix 32 Blank page I am pleased to provide this Semiannual Management Report to the Congress summarizing the activities and accomplishments of the U.S. General Services Administration (GSA) for the six-month period ending March 31, 2018. GSA�s responsibility for providing critical, cost-effective real estate, acquisition, technology, and other mission-support services across Government requires that GSA be highly effective and efficient in managing its work and programs. Quite simply, the more effective we are at our work, the better able we are to help other Federal agencies fulfill their mission needs on behalf of the American public. For this reason, I established a new audit resolution oversight process to hold GSA managers, executives, and supervisors accountable for ensuring the timely development and implementation of corrective actions. To support this process, we are developing new data analysis tools and improving audit tracking to permit GSA to better manage program risks. These enhancements will help GSA to address agency issues and risks in a more integrated, comprehensive manner. During the six-month period covered by this report, GSA took final action on 37 contract audits, both pre-award and post-award. GSA�s actions in total represent the recovery of $1,383,593 in Government funds and the identification of $199,467,843 in potential future savings. Additionally, GSA resolved several important management audits and is including the following among our accomplishments: � Revised exchange project funding and handling guidance, including extended congressional communications from project commencement through completion; � Finalized human capital strategic plans for the Federal Acquisition Service workforce for 2018- 2020, and developed accompanying initiatives for workforce transformation for contract specialists; � Ensured the accuracy of energy-related calculations by establishing a baseline for Energy Savings Performance Contracts (ESPC); in addition, implemented procedures to confirm that savings from GSA-managed operations and maintenance contracts are achievable at time of award for future ESPCs, reflect price reasonableness of the overall project, and align with Portfolio Strategy; � Undertook several initiatives to reduce Government price variability and provide greater transparency into what is being offered and purchased and at what price; � Established performance measurements and training to accommodate pricing methodologies, and implemented controls to ensure that deviations to Price Reductions Clauses are appropriately approved and do not diminish price protections; and � Achieved cost savings by amending the Household Goods Tender of Service to permit use of smaller transport equipment and ensure appropriate charging of services provided. GSA employees are committed to providing our customer agencies with maximum value on behalf of the American taxpayer. We value the work and insights of the Office of the Inspector General (GSA OIG) in helping accomplish this goal, and look forward to continued work with the GSA OIG and Congress to help Government be more responsive for the American taxpayer. Signature of the GSA Administrator.jpg Overview This report, GSA's 58th 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. 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 General Services 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. Heads of Services and Staff Offices are also responsible for execution of programs and services within their offices, under the leadership of the Administrator. Organization of the Audit follow-up Program GSA has effective systems in place for tracking and managing audit recommendations, and enhancement and modification of these systems is underway. In addition, GSA's senior management is committed to ensuring that appropriate corrective action is taken and works with supervisors and program managers who develop remedies to identified vulnerabilities and report progress in implementing solutions. 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. The responsibilities of GSA officials involved in the audit follow-up process are described 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 follow-up system, monitoring the resolution of audit recommendations, and ensuring the prompt implementation of corrective actions. The incumbent in 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 the officials in the Office of Administrative Services (OAS) who manage the GSA's Audit Resolution and Follow-up System. Their responsibilities are as follows: � Liaison with the OIG and the U.S. Government Accountability Office (GAO) for the coordination of OIG and GAO audits in progress within GSA, and coordinate preparation of responses and reports for the signature of the Administrator on GAO recommendations as required by law; � Ensure timely resolution and implementation of internal and external audit recommendations made by the OIG and GAO; � Oversee the collection and proper accounting of monetary amounts determined due to the Government as the result of audit-related claims; � Analyze GSA's programs, upon request from the Administrator, particularly as related to past or present audit recommendations; and � Maintain an automated control system for internal and external audits that provides an accurate means for monitoring, analyzing, tracking, and documenting actions taken to implement audit recommendations. Heads of Services and Staff Offices, 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, and for the following: � Ensure controls are implemented to provide timely, accurate, and complete responses to audit reports; � Develop, advocate, and document agency positions on audit recommendations; � Prepare responses for OIG and GAO draft and final reports; � Provide comments on audit decision papers prepared by the OIG to ensure that management's position on unresolved audit recommendations is properly stated. 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 GSA OIG. This report covers the period of October 1, 2017, through March 31, 2018. As required by statute, this report includes 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, 2017, GSA had 122 contract and internal audit reports pending final action. These reports contained financial recommendations totaling $786,253,615 (section A, pages 8 and 9). � 109 contract audits reflect financial recommendations totaling $786,253,615. � 13 internal audits contained no financial recommendations. Between October 1, 2017, and March 31, 2018, GSA finalized management decisions on 31 audit reports concerning nationwide GSA programs and operations. � In 22 of these audits, a total of $10,111,053 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 (section B, page 8). � In 20 of the 31 audits, it was recommended that $292,651,662 could be used more effectively (better use funds) if management took action to implement and complete the OIG recommendations1 (section B, page 9; also see Appendix). During this 6-month reporting period, GSA successfully took final action on 37 audits. These audits represent the potential recovery of $5,606,669 (section C, page 8) in Government funds and the identification of $199,467,843 in potential future savings (section C, page 9). As of March 31, 2018, GSA had 113 open audit reports. Three of these audits involve claims under appeal or in litigation. 1 The Appendix reflects management decisions from reports issued to GSA from the GSA OIG Office of Audits. The above count indicates all reports issued to GSA from both the GSA OIG Office of Audits and GSA OIG Office of Inspections. Audit with Disallowed Costs Final action for the six-month period Ending MARCH 31, 2018 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 122 31 Disallowed Costs $57,412,203 $10,111,053 C. Audit reports on which final action was taken during the reporting period. (i) the dollar value of disallowed costs - collections....................... $1,085,637 - offset .............................. $105,026 - property in lieu of cash... $0 - surplus ........................... $192,929 - other .............................. $1 (ii) the dollar value of disallowed costs that were written off by management. 37 $5,606,669 $1,383,593 $4,223,076 D. Audit reports for which no final action has been taken by the end of the reporting period and audit reports issued during this reporting period. 113 $ 59,845,477 Audits with Better Use Funds (Potential Cost Savings) Final action for the six-month Number of Audit Ending MARCH 31, 2018 Reports A. Audit reports for which final 122 action had not been taken by the commencement of the reporting period. B. Audit reports on which 31 management decisions were made during the reporting period. No budget Impact (Actual and Estimated) $716,561,750 $292,651,662 Budget Impact $0 $0 C. Audit reports on which final 37 $199,476,843 ($2,170,755)2 2 2 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 $201,647,598 ''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 and audit reports issued during this reporting period. 113 $843,913,291 $0 2 Total award amount GSA to pay to vendors according to Civilian Board of Contract Appeals decisions in cases 5449 and 4539/4545. Audits under Appeal/Litigation REPORT NUMBER NAME OF CONTRACTOR DATE OF REPORT MANAGEMENT DECISION AMOUNTS Disallowed Costs Better Use Funds A140116P4X15016 City Lights Electrical Company, Inc. 01/30/2015 $0 A140118P4X16005 N.B. Kenney Company, Inc. 11/13/2015 $0 A140110P4X15003 Suffolk Construction Company, Inc. 11/10/2014 $0 Contract Audits REPORT NUMBER NAME OF CONTRACTOR DATE OF REPORT MANAGEMENT DECISION AMOUNTS REASON FOR NO FINAL ACTION Disallowed Costs Better Use Funds Investigation in process - An investigation was opened by the Department of Justice regarding actions taken by the contractor A090042Q9X09019 Trilogy Project: Computer Sciences Corporation 12/29/2008 $14,951,923 A100119Q6X11081 Noble Sales Co., Inc. 08/03/2011 $0 Price/settlement negotiated - Negotiations have been completed between Contracting Officer and contractor 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 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 Contract Audits REPORT NUMBER NAME OF CONTRACTOR DATE OF REPORT MANAGEMENT DECISION AMOUNTS REASON FOR NO FINAL ACTION Disallowed Costs Better Use Funds A130136Q3X14026 Fisher Scientific Company LLC 04/14/2014 $0 In negotiation - Negotiations are proceeding between Contracting Officer Investigation in process - An investigation was opened by the Department of Justice regarding actions taken by the contractor A110139Q9X14028 Alaska Structures, Incorporated 04/24/2014 $1,999,255 In negotiation - Negotiations are proceeding between Contracting Officer and contractor A140057Q3X14043 ATD-American Company 06/19/2014 $4,895 Price/settlement negotiated - Negotiations have been completed between Contracting Officer and contractor A130116Q3X14053 Management Concepts, Inc. 07/29/2014 $14,121 Litigation in process - The contractor has appealed the Contracting Officer's decision and the audit is now in the litigation process 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 Contract Audits REPORT NUMBER NAME OF CONTRACTOR DATE OF REPORT MANAGEMENT DECISION AMOUNTS REASON FOR NO FINAL ACTION Disallowed Costs Better Use Funds In negotiation - Negotiations are proceeding between Contracting Officer and contractor A140149P4X15027 Donaldson Interiors, Inc. 03/27/2015 $0 A140039Q4X15029 High Performance Technologies Innovations, LLC 03/31/2015 $539,872 In negotiation - Negotiations are proceeding between Contracting Officer and contractor 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 A140079Q6X15061 CACI, Inc. - FEDERAL 09/23/2015 $0 Price/settlement negotiated - Negotiations have been completed between Contracting Officer and contractor A150083QAX16004 LCG Systems, LLC 11/10/2015 $149,663 In negotiation - Negotiations are proceeding between Contracting Officer and contractor A150077QAX16006 Office Depot, Inc. 11/12/2015 $0 Contract Audits REPORT NUMBER NAME OF CONTRACTOR DATE OF REPORT MANAGEMENT DECISION AMOUNTS REASON FOR NO FINAL ACTION Disallowed Costs Better Use Funds Litigation in process - The contractor has appealed the Contracting Officer's decision and the audit is now in the litigation process A140118P4X16005 N.B. Kenney Company, Inc. 11/13/2015 $0 In negotiation - Negotiations are proceeding between Contracting Officer and contractor A140064Q3X16007 AllWorld Language Consultants, Inc. 11/18/2015 $35,292 A150113P4X16008 Matsuo Engineering Centerre Construction, A Joint Venture 11/20/2015 $0 In negotiation - Negotiations are proceeding between Contracting Officer and contractor In negotiation - Negotiations are proceeding between Contracting Officer and contractor A150069Q5X16012 Research Triangle Institute 12/03/2015 $61,375 Price/settlement negotiated - Negotiations have been completed between Contracting Officer and contractor A090175Q4X16011 Square One Armoring Services 12/03/2015 $1,850,081 In negotiation - Negotiations are proceeding between Contracting Officer and contractor A140055Q2X16013 SRC, Inc. 12/07/2015 $637,423 Contract Audits REPORT NUMBER NAME OF CONTRACTOR DATE OF REPORT MANAGEMENT DECISION AMOUNTS REASON FOR NO FINAL ACTION Disallowed Costs Better Use Funds 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 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 A150093Q3X16027 Innovative Management & Technology Approaches, Inc. 03/02/2016 $143,095 In negotiation - Negotiations are proceeding between Contracting Officer and contractor In negotiation - Negotiations are proceeding between Contracting Officer and contractor A140147P2X16030 ASM Mechanical Systems, Inc. 03/30/2016 $1,120,928 A160026Q7X16039 Skyline Unlimited, Inc. In negotiation - Negotiations are proceeding between Contracting Officer and contractor 05/12/2016 $35,373 Contract Audits REPORT NUMBER NAME OF CONTRACTOR DATE OF REPORT MANAGEMENT DECISION AMOUNTS REASON FOR NO FINAL ACTION Disallowed Costs Better Use Funds Price/settlement negotiated - Negotiations have been completed between Contracting Officer and contractor A150073Q2X16040 Simmonds Precision Products, Inc. 05/23/2016 $531 In negotiation - Negotiations are proceeding between Contracting Officer and contractor A150085Q9X16043 Mathematica Policy Research, Inc. 06/24/2016 $172,827 In negotiation - Negotiations are proceeding between Contracting Officer and contractor A150087Q5X16050 LC Industries 07/21/2016 $83,268 In negotiation - Negotiations are proceeding between Contracting Officer and contractor A150080Q2X16052 Connecticut Container Corporation 07/27/2016 $0 In negotiation - Negotiations are proceeding between Contracting Officer and contractor A150107Q6X16056 Radiance Technologies, Inc. 08/04/2016 $529,097 In negotiation - Negotiations are proceeding between Contracting Officer and contractor A160046Q6X16057 Franconia Real Estate Services, Inc. 08/05/2016 $1,387 A160039Q3X16055 Carahsoft Technology Corporation 08/08/2016 $0 Price/settlement negotiated - Negotiations have been completed between Contracting Officer and contractor Contract Audits REPORT NUMBER NAME OF CONTRACTOR DATE OF REPORT MANAGEMENT DECISION AMOUNTS REASON FOR NO FINAL ACTION Disallowed Costs Better Use Funds A150050Q5X16060 Trane U.S. Inc. 08/19/2016 $2,137 In negotiation - Negotiations are proceeding between Contracting Officer and contractor In negotiation - Negotiations are proceeding between Contracting Officer and contractor A160017Q5X16064 PotomacWave Consulting, Inc. 08/29/2016 $91,426 Price/settlement negotiated - Negotiations have been completed between Contracting Officer and contractor A160061Q5X16067 SkillSoft Corporation 09/08/2016 $71,274 Price/settlement negotiated - Negotiations have been completed between Contracting Officer and contractor A160027Q7X16068 Agilent Technologies, Inc. 09/08/2016 $3,352 Price/settlement negotiated - Negotiations have been completed between Contracting Officer and contractor A160049Q7X16071 Parsons Government Services, Inc. 09/14/2016 $49,989 Price/settlement negotiated - Negotiations have been completed between Contracting Officer and contractor A160068Q3X16072 Knight Point Systems, LLC 09/15/2016 $23,009 Contract Audits REPORT NUMBER NAME OF CONTRACTOR DATE OF REPORT MANAGEMENT DECISION AMOUNTS REASON FOR NO FINAL ACTION Disallowed Costs Better Use Funds A160093Q7X16074 United Liquid Gas Company 09/19/2016 $3,321,947 In negotiation - Negotiations are proceeding between Contracting Officer and contractor A160021Q9X16075 ForeSee Results, Inc. 09/28/2016 $874,127 In negotiation - Negotiations are proceeding between Contracting Officer and contractor In negotiation - Negotiations are proceeding between Contracting Officer and contractor A140053Q2X16076 EMCOR Government Services, Inc. 09/29/2016 $0 Price/settlement negotiated - Negotiations have been completed between Contracting Officer and contractor A160033Q3X17001 Bentley Systems, Inc. 10/07/2016 $99,279 In negotiation - Negotiations are proceeding between Contracting Officer and contractor A150083QAX17005 LCG Systems, LLC 10/13/2016 $832,697 In negotiation - Negotiations are proceeding between Contracting Officer and contractor A150094Q6X17006 KeyPoint Government Solutions, Inc. 10/17/2016 $370,955 In negotiation - Negotiations are proceeding between Contracting Officer and contractor A140133Q9X17007 ARES Corporation 10/27/2016 $2,524,644 Contract Audits REPORT NUMBER NAME OF CONTRACTOR DATE OF REPORT MANAGEMENT DECISION AMOUNTS REASON FOR NO FINAL ACTION Disallowed Costs Better Use Funds A160080Q3X17012 Client Solutions Architects, LLC. 11/22/2016 $0 In negotiation - Negotiations are proceeding between Contracting Officer and contractor A150059P4X17013 PDS MICCO JV2, LLC 11/29/2016 $0 In negotiation - Negotiations are proceeding between Contracting Officer and contractor In negotiation - Negotiations are proceeding between Contracting Officer and contractor A160078QAX17014 International Resources Group 11/30/2016 $0 Unresolved - Agreement has not been reached between OIG and Contracting Officer on the Decision Record A140162P6X17016 Satellite Services, Inc. 12/21/2016 $93,173 A150111Q6X17017 EAN Holdings, LLC 12/27/2016 $1,915,085 Unresolved - Agreement has not been reached between OIG and Contracting Officer on the Decision Record A120149Q4X17015 Lockheed Martin Integrated Systems, Incorporated 12/29/2016 $12,221,921 In negotiation - Negotiations are proceeding between Contracting Officer and contractor Contract Audits REPORT NUMBER NAME OF CONTRACTOR DATE OF REPORT MANAGEMENT DECISION AMOUNTS REASON FOR NO FINAL ACTION Disallowed Costs Better Use Funds A160075Q5X17018 Ecolab, Inc. 01/04/2017 $0 In negotiation - Negotiations are proceeding between Contracting Officer and contractor A140112Q4X17020 Leidos, Inc. 01/20/2017 $0 In negotiation - Negotiations are proceeding between Contracting Officer and contractor 01/24/2017 $29,766 In negotiation - Negotiations are proceeding between Contracting Officer and contractor A160095Q9X17022 Ogilvy Public Relations Worldwide A150102Q2X17024 Riverside Research Institute 01/25/2017 $4,217 In negotiation - Negotiations are proceeding between Contracting Officer and contractor A160074P4X17023 ARRIBA Corporation 01/26/2017 $0 In negotiation - Negotiations are proceeding between Contracting Officer and contractor A160059Q5X17025 National Opinion Research Center 01/30/2017 $203,224 In negotiation - Negotiations are proceeding between Contracting Officer and contractor A160104P5X17028 M. A. Mortenson Company 02/22/2017 $0 In negotiation - Negotiations are proceeding between Contracting Officer and contractor Contract Audits REPORT NUMBER NAME OF CONTRACTOR DATE OF REPORT MANAGEMENT DECISION AMOUNTS REASON FOR NO FINAL ACTION Disallowed Costs Better Use Funds A160111Q3X17029 Ambit Group, LLC 03/03/2017 $1,075 In negotiation - Negotiations are proceeding between Contracting Officer and contractor A160135Q7X17030 SecTek Incorporated 03/17/2017 $612,910 In negotiation - Negotiations are proceeding between Contracting Officer and contractor 03/30/2017 $285,906 In negotiation - Negotiations are proceeding between Contracting Officer and contractor A150001Q2X17033 Noble Sales Co., Inc. Internal Audits 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 A130003P2R17002 Procurement and Internal Control Issues Exist within PBS's Brooklyn/Queens/ Long Island Service Center 01/20/2017 $0 Audit is in the Implementation Stage 04/28/2018 Open Recommendations Not Fully Resolved as of March 31, 2018 Number and Title of Report Report Issue Date Recommendation Number Entire Recommendation Original Due Date Current Due Date A130019C6F15001 GSA's Program for Managing Virtual Employees and Teleworkers Needs Improvement3 01/16/2015 002 Verify official duty stations for all virtual employees and correct any errors, including collection of amounts owed or payment of amounts due. 09/30/2015 08/31/2018 A130019C6F15001 GSA's Program for Managing Virtual Employees and Teleworkers Needs Improvement3 01/16/2015 005 Ensure that GSA employees complete required telework training in accordance with GSA policy prior to beginning or continuing to telework. Employees failing to complete all required telework training within a reasonable time period should be removed from telework. 08/31/2015 06/29/2018 Grant Central Office portfolio training coordinators system A140008Q9P15002 FAS Needs to Strengthen its Training and Warranting Program for Contracting Officers 06/26/2015 004 access to generate reports in the Federal Acquisition Institute Training Application System that track Federal Acquisition 06/15/2016 06/25/2018 Certification in Contracting and warrant compliance for their assigned staff. A150120P2R16002 PBS is not Enforcing Contract Security Clearance Requirements on a Project at the Keating Federal Building3 03/17/2016 003 Direct management in PBS's Upstate Service Center to determine and implement the appropriate corrective actions needed for not enforcing the contract's security clearance requirements. 09/26/2016 04/30/2018 3 Recommendations reopened based on results of an OIG Implementation Review. Open Recommendations Not Fully Resolved as of March 31, 2018 Number and Title of Report Report Issue Date Recommendation Number Entire Recommendation Original Due Date Current Due Date 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. 09/11/2017 04/28/2018 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. 02/28/2018 09/28/2018 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. 08/01/2018 08/01/2018 Ensure that the security control weaknesses identified in our audit are mitigated in accordance with applicable standards, guidelines, and recommendations established by the National Institute of Standards and Technology and the Center for Internet Security. A160112OTF17002 Limited Scope Audit of the System Security Controls for Enterprise Acquisition System Integrated (EASi) 08/09/2017 001 06/29/2018 06/29/2018 A160112OTF17002 Limited Scope Audit of the System Security Controls for Enterprise Acquisition System Integrated (EASi) 08/09/2017 002 Review and apply GSA's Information Technology baseline security hardening requirements to EASi's server operating systems, web application, and database. 06/29/2018 06/29/2018 Open Recommendations Not Fully Resolved as of March 31, 2018 Number and Title of Report Report Issue Date Recommendation Number Entire Recommendation Original Due Current Due 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 OIG is working with GSA to achieve an approved audit resolution package. 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. 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 Institute the necessary management controls to ensure that procurements for the campus comply with the Competition in Contracting Act of 1984 and Federal Acquisition 08/24/2017 003 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. Open Recommendations Not Fully Resolved as of March 31, 2018 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 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. GSA OIG is working with GSA to achieve an approved audit resolution package. 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. 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 [ESPC] Regulations and Policy 08/24/2017 005D Implement training for PBS NCR personnel responsible for Compliance with requirements to hold a Pre-award Review Board review prior to award, or if waived, a Post-award Review Board review for applicable task orders. Open Recommendations Not Fully Resolved as of March 31, 2018 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 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. GSA OIG is working with GSA to achieve an approved audit resolution package. A150150BRF18001 Audit of the Completeness, Timeliness, Quality, and Accuracy of GSA's 2017 DATA Act Submission 11/08/2017 001 Consistently apply the DATA Act elements and definitions applicable to GSA throughout Agency procurements. 09/28/2018 09/28/2018 A150150BRF18001 Audit of the Completeness, Timeliness, Quality, and Accuracy of GSA's 2017 DATA Act Submission Incorporate DATA Act elements into routine reviews similar to GSA's annual verification and validation efforts of FPDS-NG data. 11/08/2017 002 07/31/2018 07/31/2018 A150150BRF18001 Audit of the Completeness, Timeliness, Quality, and Accuracy of GSA's 2017 DATA Act Submission Work with DATA Act stakeholders to correct Government-wide issues. 11/08/2017 003 06/29/2018 06/29/2018 Implement policies and procedures to monitor and track facility security assessment reports. This should include developing an automated methodology to track whether PBS received the facility security assessment reports. A160101O7F18002 GSA Should Monitor and Track Facility Security 12/04/2017 001A 11/30/2018 11/30/2018 Assessments A160101O7F18002 GSA Should Monitor and Track Facility Security Assessments 12/04/2017 002 Require training for PBS property managers on the use of facility security assessment reports. 11/30/2018 11/30/2018 A170024OTF18003 Limited Scope Audit of the Technical Security Controls for the FAS Sales Reporting Portal 01/19/2018 001 Ensure that the missing software updates are applied to the SRP system environment in accordance with NIST, GSA's Information Technology Security Policy, and GSA IT procedural guides. GSA response submitted; awaiting OIG-approved audit resolution package. Open Recommendations Not Fully Resolved as of March 31, 2018 Recommendation Number Original Due Date Number and Title of Report Report Issue Date Current Due Date Entire Recommendation Ensure that future software patches are applied to the SRP system environment in a timely manner in accordance with NIST, GSA's Information Technology Security Policy, and GSA IT procedural guides. GSA response submitted; awaiting OIG-approved audit resolution package. A170024OTF18003 Limited Scope Audit of the Technical Security Controls for the FAS Sales Reporting Portal 01/19/2018 002 Ensure that the technical security control configuration weaknesses identified in this audit report are mitigated in accordance with recommendations established by NIST, CIS, and GSA IT. A170024OTF18003 Limited Scope Audit of the Technical Security 01/19/2018 003 Controls for the FAS Sales Reporting Portal GSA's leadership should include the anti-gag provision required by the Whistleblower Protection Enhancement Act of 2012 in GSA's order on congressional and intergovernmental inquiries and relations. GSA response submitted; awaiting OIG-approved audit resolution package. JE18-002 - Evaluation of GSA Nondisclosure Policy 03/08/2018 001 JE18-002 - Evaluation of GSA Nondisclosure Policy 03/08/2018 002 GSA's leadership should clarify GSA's policy on communications with Members of Congress in GSA's order on congressional and intergovernmental inquiries and relations. A140006Q6P18001 Audit of the GSA Federal Acquisition Service's Use of Outside Consultants 03/22/2018 001 The FAS Commissioner implement controls to ensure that all FAS contracting actions for consulting services comply with the FAR and FAS policies and procedures. GSA�s response to the OIG Final Report to be submitted by due date of 05/18/2018. Glossary of Terms 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. Glossary of Terms 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 matched with 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 Memorandum from the GSA Office of Inspector General citing the total management decisions for the period October 1, 2017 through March 31, 2018. The totals are based on the H1EB/JA Data Match Reprot, dated April 11, 2018 and JA's AIS Database. Type of Audit: Preaward; Number of Audits 20; Amount of Better Use Funds $292,651,662; Amount of Disallowed Cost $9,216,203. Type of Audit: Postaward; Number of Audits 2; Amount of Better Use Funds $0; Amount of Disallowed Cost $894,850. Type of Audit: Internal; Number of Audits 8; Amount of Better Use Funds $0; Amount of Disallowed Cost $0. Totals = 30 Audits Better Use Funds - $292,651,662.00 Disallowed Cost - $10.111.053.00 This memorandum was signed by both Director's of H1EB and JA on April 17, 2018. GSA Seal Picture of the back of the building with new completed construction.jpg U.S. General Services Administration 1800 F Street NW Washington, DC 20405 www.gsa.gov