Front Cover
A picture of General Services Administration with the following title
ADMINISTRATOR'S SEMIANNUAL MANAGEMENT REPORT TO CONGRESS
REPORT NO. 60
OCTOBER 1, 2018�MARCH 31, 2019
U.S. General Services Administration
Emily W. Murphy
Administrator
Office of Administrative Services Robert Stafford
Chief Administrative Services Officer
Office of Executive Secretariat and Audit Management
Theresa Ottery
Director
May 2019
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 & Audit Management, Administrator's Semiannual Management Report to Congress, No. 60, Washington, DC 20405.
Copies of this report can be obtained using any of the following:
Mail: Office of Executive Secretariat & Audit Management
Office of Administrative Services
U.S. General Services Administration 1800 F Street NW
Washington, DC 20405
E-mail: GAO-IGAuditMgmtDiv@gsa.gov
Online: Semiannual Management Report to Congress
Telephone: (202) 384-2511
Contents
Message from the Administrator 3
Overview 4
U.S. General Services Administration Organization 4
Organization of Audit Follow-up Program 5
Agency Audit Follow-up Official 5
Chief Administrative Services Officer (CASO) 5
Heads of Services and Staff Offices, Regional Administrators 5
Synopsis of Audit Activity 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 March 31, 2019 19
Glossary of Terms 30
Appendix 32
Message from the Administrator
I am pleased to provide this Semiannual Management Report to Congress summarizing audit-related actions
and accomplishments of the U.S. General Services Administration (GSA) for the 6-month period ending March
31, 2019.
GSA's unique responsibility for delivering value and savings in real estate, acquisition, technology, and other
mission-support services across Government requires that all levels of GSA manage agency work effectively
and efficiently, to help ensure that other agencies can meet their mission needs on behalf of the American
public.
GSA's accomplishments during this period reflect the high priority the agency has placed on continued
strengthening of audit oversight and internal control processes. These enhancements hold GSA managers
and supervisors accountable for ensuring timely development and implementation of corrective actions across
audit-subject offices and related offices. These enhancements also reinforce GSA's internal control
framework, as well as GSA's audit resolution and follow-up analysis and monitoring.
During the past 6 months, GSA took final action on 30 Office of Inspector General (OIG) contract audits, both
pre-award and post-award. While the Government's partial shutdown slightly affected GSA's closure rate,
GSA significantly reduced the number of newly issued and pending contract audit reports for which no action
has been taken in 12 months to a 4-year low of just 95 contract audits.
Additionally, GSA resolved several OIG operational audits, of which the below are key:
Partnered with Digital Accountability and Transparency Act of 2014 (DATA Act) stakeholders to include
routine reviews similar to GSA's annual verification and validation efforts of Federal Procurement Data
System-Next Generation (FPDS-NG) data;
Ensured appropriate enforcement of the restrictions for GSA SmartPay� travel charge card usage and
increased monitoring efforts for the resolution of questionable charges;
Strengthened controls concerning Federal acquisition and the use of outside consultants;
Heightened oversight of the implementation of the minimum performance criteria concerning capital
projects; and
Implemented tighter controls to ensure that contractors bill ordering agencies in compliance with the
pricing terms of Blanket Purchase Agreements for GSA's Wireless Federal Strategic Sourcing
Initiative.
GSA is committed to providing customer agencies with maximum value on behalf of the American taxpayer.
We value the work and insights of the 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.
signed by Emily W. Murphy
Overview
This report, GSA's 60th 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 and effective role in the effective 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 specific Government-wide policies and regulations. GSA's 11 regions provide local support to Federal agencies nationwide, while GSA's several staff offices provide support to other GSA organizations and 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 also are responsible for the execution of programs and services within their offices, under the leadership of the Administrator.
Organization of Audit Follow-up Program
GSA has effective systems in place for tracking and managing audit recommendations, and enhancement and modification of these systems is ongoing. GSA's management, which is held accountable for ensuring that appropriate corrective action is taken promptly, 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 overseen by the Agency Audit Follow-up Official. The descriptions of the duties of the GSA officials involved in the audit follow-up process are below.
Agency Audit Follow-up Official
The GSA Deputy Administrator as the Agency Audit Follow-up Official has overall responsibility for the audit follow-up program. This includes responsibility for ensuring the adequacy of the agency's follow-up system, monitoring the resolution of audit recommendations, and ensuring timely implementation of corrective actions. The incumbent in this position also makes final decisions to resolve differences between agency management and the GSA 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 GSA 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 Heads of Service and Staff Offices or the Administrator, as required;
* Ensure timely resolution and implementation of internal and external audit recommendations made by the GSA 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 to GSA OIG and GAO draft and final reports;
* Provide comments on audit decision papers prepared by the GSA OIG to accurately state management's position on unresolved audit recommendations.
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, 2018, through March 31, 2019. Included in the report are summaries of GSA audit activities concerning the following:
* GSA implementation of GSA 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, 2018, GSA had 103 contract and internal audit reports pending final action. These reports contained financial recommendations totaling $760,057,251 (section A, pages 7 and 8).
* Financial recommendations for 91 contract audits totaled $760,057,251.
* Financial recommendations for 12 internal audits totaled $0.
Between October 1, 2018, through March 31, 2019, GSA finalized management decisions on 21 audit reports concerning nationwide GSA programs and operations.
* In 15 of the 21 audits, a total of $126,261 in pre-award contracts and internal program spending was found to have been incorrectly charged to the Government and determined to be disallowed costs. GSA OIG did not issue any post-award audits during this reporting period.
* In 15 of the 21 audits, it was recommended that $121,066,323 could be used more effectively (better use funds) if management took action to implement and complete the GSA OIG recommendations (see Appendix).
During this 6-month reporting period, GSA successfully took final action on 38 audits. These audits represent the recovery of $5,973,132.84 (section C, page 8) in Government funds and the identification of $214,357,765 in potential future savings (section C, page 8), of which $19,790,000 affected GSA�s budget.
As of March 31, 2019, GSA had 95 open audit reports. Ten of these audits involve claims under appeal or in litigation.
Audits with Disallowed Costs
Final action for the six-month period
Ending March 31, 2019
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
103
21
Disallowed Costs
$51,331,586
$126,261
C. Audit reports on which final action was taken during the reporting period.
(i) the dollar value of disallowed costs
- collections������.$3,810,525.00
- offset������������..$0.00
- property in lieu of cash���� ..$0.00
- surplus�������...$2,162,603.84
- other��.����..�����...$4.00
(ii) the dollar value of disallowed costs that were written off by management.
38
$6,736,966.84
$5,973,132.84
$763,834
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.
95
$50,173,774
Audits with Better Use Funds (Potential Cost Savings)
Final action for the six-month Number of Audit
Ending March 31, 2019 Reports
A. Audit reports for which final 103
action had not been taken by the commencement of the reporting period.
B. Audit reports on which 21
management decisions were made during the reporting period.
No budget Impact (Actual and Estimated)
$708,725,665
$121,066,323
Budget Impact
$0
$0
C. Audit reports on which final
38
$194,567,765
($19,790,000)
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
$214,357,765
''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.
95
$632,337,719
$0
1 Total Award amount GSA to pay to vendors according to Civilian Board of Contract Appeals decisions in cases 5344, 5400, 5605, and 5323/5652.
Audits under Appeal/Litigation
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
Disallowed Costs
Better Use Funds
A140110P4X15003
Suffolk Construction Company, Inc.
11/10/2014
$0
A140116P4X15016
City Lights Electrical Company, Inc.
01/30/2015
$0
A140074Q6X15037
Engility Corporation
06/10/2015
$1,886,901
A140118P4X16005
N.B. Kenney Company, Inc.
11/13/2015
$0
A160093Q7X16074
United Liquid Gas Company
09/19/2016
$3,321,947
A120149Q4X17015
Lockheed Martin Integrated Systems, Incorporated
12/29/2016
$12,221,921
A160104P5X17028
M. A. Mortenson Company
02/22/2017
$0
A160106P2X17052
RK Mechanical, Inc.
09/13/2017
$0
A170108P3X18011
RK Mechanical, Incorporated
12/21/2017
$0
A160105P4X18017
NCES-Nuprecon JV
02/22/2018
$0
Contract Audits
Audits with Management Decisions made prior to March 31, 2018, but with
Final Action not taken as of March 31, 2019.
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
A090042Q9X09019
Computer Sciences Corporation
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
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
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
Contract Audits
Audits with Management Decisions made prior to March 31, 2018, but with
Final Action not taken as of March 31, 2019.
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
Price/settlement negotiated - Negotiations have been completed 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
A140074Q6X15037
Engility Corporation
Litigation in
process - The
contractor has appealed the Contracting Officer's decision
and the audit is
now in the litigation
process
06/10/2015
$1,886,901
A150083QAX16004
LCG Systems, LLC
11/10/2015
$149,663
In the process of
collection - GSA is
in the process of collecting funds owed the
Government from
the 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
A150113P4X16008
Matsuo Engineering Centerre Construction, A Joint Venture
11/20/2015
$0
Mediation in Progress - GSA and the vendor entered a period of mediation to resolve a dispute
Contract Audits
Audits with Management Decisions made prior to March 31, 2018, but with
Final Action not taken as of March 31, 2019.
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
Price/settlement negotiated - Negotiations have been completed between Contracting Officer and contractor
A140146P4X16017
Cauldwell Wingate Company, LLC
12/21/2015
$0
Price/settlement negotiated - Negotiations have been completed between Contracting Officer and contractor
A140145P4X16018
Pace Plumbing Corporation
12/28/2015
$0
Price/settlement negotiated - Negotiations have been completed between Contracting Officer and contractor
A140148P4X16022
Five Star Electric Corporation
01/29/2016
$0
A140147P2X16030
ASM Mechanical Systems, Inc.
03/30/2016
$1,120,928
Price/settlement negotiated - Negotiations have been completed 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
Contract Audits
Audits with Management Decisions made prior to March 31, 2018, but with
Final Action not taken as of March 31, 2019.
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
A160039Q3X16055
Carahsoft Technology Corporation
08/08/2016
$0
Unresolved - Agreement has not been reached between OIG and Contracting Officer on the Decision Record
A160027Q7X16068
Agilent Technologies, Inc.
09/08/2016
$3,352
In negotiation -
Negotiations are proceeding between Contracting Officer
and contractor
A160093Q7X16074
United Liquid Gas Company
09/19/2016
$3,321,947
Litigation in
process - The
contractor has appealed the Contracting Officer's decision
and the audit is
now in the litigation
process
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
Price/settlement negotiated - Negotiations have been completed between Contracting Officer and contractor
A140133Q9X17007
ARES Corporation
10/27/2016
$2,524,644
In negotiation -
Negotiations are proceeding between
Contracting Officer
and contractor
Contract Audits
Audits with Management Decisions made prior to March 31, 2018, but with
Final Action not taken as of March 31, 2019.
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
A120149Q4X17015
Lockheed Martin Integrated Systems, Incorporated
12/29/2016
$12,221,921
Litigation in
process - The
contractor has appealed the Contracting Officer's decision
and the audit is
now in the litigation
process
A160095Q9X17022
Ogilvy Public Relations Worldwide
01/24/2017
$29,766
In negotiation -
Negotiations are proceeding between Contracting Officer
and contractor
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
A160104P5X17028
M. A. Mortenson Company
02/22/2017
$0
Litigation in
process - The
contractor has appealed the Contracting Officer's decision
and the audit is
now in the litigation
process
A160111Q3X17029
Ambit Group, LLC
03/03/2017
$1,075
In negotiation -
Negotiations are proceeding between
Contracting Officer
and contractor
Contract Audits
Audits with Management Decisions made prior to March 31, 2018, but with
Final Action not taken as of March 31, 2019.
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
A150001Q2X17033
Noble Sales Co., Inc.
03/30/2017
$285,906
In negotiation -
Negotiations are proceeding between
Contracting Officer
and contractor
A160069Q2X17034
Security Engineered Machinery Company, Inc.
04/05/2017
$9,940
In negotiation -
Negotiations are proceeding between Contracting Officer
and contractor
A160088QAX17039
CSRA, Inc.
05/17/2017
$0
In negotiation -
Negotiations are proceeding between
Contracting Officer
and contractor
A160117Q6X17043 StrategicHealthSolutions, LLC
06/20/2017
$169,269
In negotiation -
Negotiations are proceeding between
Contracting Officer
and contractor
A170067Q3X17051 Catapult Technology, Ltd.
09/07/2017
$45,680
In negotiation -
Negotiations are proceeding between
Contracting Officer
and contractor
A160106P2X17052
RK Mechanical, Inc.
09/13/2017
$0
Litigation in
process - The
contractor has appealed the Contracting Officer's decision
and the audit is
now in the litigation
process
A160056QAX17053
Omniplex World Services Corporation
09/28/2017
$0
In negotiation -
Negotiations are proceeding between
Contracting Officer
and contractor
Contract Audits
Audits with Management Decisions made prior to March 31, 2018, but with
Final Action not taken as of March 31, 2019.
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
A170078Q7X17056 ADTRAV Corporation
09/28/2017
$20,723
In negotiation -
Negotiations are proceeding between
Contracting Officer
and contractor
A170065Q6X17055
National Government Services, Inc.
09/28/2017
$0
Unresolved - Agreement has not been reached between OIG and Contracting Officer on the Decision Record
A160129Q6X17054
Galls, LLC
09/28/2017
$117,900
In negotiation -
Negotiations are proceeding between
Contracting Officer
and contractor
A160136Q6X18005
Insight Public
Sector, Inc.
11/16/2017
$4,743,334
In negotiation -
Negotiations are proceeding between
Contracting Officer
and contractor
A170058QAX18006
August Schell Enterprises,
Inc.
12/14/2017
$2,466
In negotiation -
Negotiations are proceeding between
Contracting Officer
and contractor
A170108P3X18011
RK Mechanical, Incorporated
12/21/2017
$0
Litigation in
process - The
contractor has appealed the Contracting Officer's decision
and the audit is
now in the litigation
process
Contract Audits
Audits with Management Decisions made prior to March 31, 2018, but with
Final Action not taken as of March 31, 2019.
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
A160105P4X18017
NCES-Nuprecon JV
02/28/2018
$0
Litigation in
process - The
contractor has appealed the Contracting Officer's decision
and the audit is
now in the litigation
process
A160052P2X18019
Concentric Security, LLC
03/08/2018
$0
In negotiation -
Negotiations are proceeding between
Contracting Officer
and contractor
A170059Q5X18020
Technical Communities, Inc. dba Testmart
03/21/2018
$224,992
In negotiation -
Negotiations are proceeding between
Contracting Officer
and contractor
A170099Q5X18021
DHA Group, Inc.
03/23/2018
$1,402,985
In negotiation -
Negotiations are proceeding between
Contracting Officer
and contractor
A170087QAX18022
International Business Machines Corporation
03/29/2018
$0
In negotiation -
Negotiations are proceeding between
Contracting Officer
and contractor
Internal Audits
Audits with Management Decisions Made Prior to March 31, 2018, but with Final Action not Taken as of March 31, 2019.
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
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
04/30/2019
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
$0
Audit is in the Working Stage
No established date at this time.
A160101O7F18002
GSA Should Monitor and Track Facility Security Assessments
12/04/2017
$0
Audit is in the Implementation Stage
04/04/2019
Open OIG Recommendations Not Fully Resolved as of March 31, 2019
Audits with Management Decisions and Approved Due Dates
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
(Reopened for an implementation review)
9/28/2016
001
Review and certify GSA's September 18, 2015, breach notification efforts and determine if any additional action is needed to ensure all affected individuals have been notified.
12/31/2018
04/30/2019
A160028OTF16003
Audit of GSA's Response to the Personally Identifiable Information Breach of September 18, 2015
(Reopened for an implementation review)
9/28/2016
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 are identified as deficient.
03/29/2019
04/30/2019
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
04/30/2019
Open OIG Recommendations Not Fully Resolved as of March 31, 2019
Audits with Management Decisions and Approved Due Dates
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
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 and OIG are continuing with discussions to finalize an Implementation Plan concerning these recommendations.
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
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.
Open OIG Recommendations Not Fully Resolved as of March 31, 2019
Audits with Management Decisions and Approved Due Dates
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
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.
GSA and OIG are continuing with discussions to resolve an Implementation Plan concerning these recommendations.
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.
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.
Open OIG Recommendations Not Fully Resolved as of March 31, 2019
Audits with Management Decisions and Approved Due Dates
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
005C
Implement training for
PBS NCR personnel responsible for contract file documentation requirements.
GSA and OIG are continuing with discussions to resolve an Implementation Plan concerning these recommendations.
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.
A160101O7F18002
GSA Should Monitor and Track Facility Security
Assessments
12/04/2017
001A
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.
11/30/2018
04/01/2019
Open OIG Recommendations Not Fully Resolved as of March 31, 2019
Audits with Management Decisions and Approved Due Dates
Number
and Title of Report
Report Issue Date
Recommendation Number
Entire Recommendation
Original Due Date
Current Due Date
A140143QTP18004
Audit of Transactional Data Reporting Pilot Evaluation Plan and Metrics
07/25/2018
001
Revise the TDR pilot objectives to include specific statements of accomplishment to measure performance.
01/31/2019
04/12/2019
A140143QTP18004
Audit of Transactional Data Reporting Pilot Evaluation Plan and Metrics
07/25/2018
002
Establish performance targets for each pilot metric.
01/31/2019
04/12/2019
A140143QTP18004
Audit of Transactional Data Reporting Pilot Evaluation Plan and Metrics
7/25/2018
003
Ensure that TDR data is available, accurate, and reliable for use in and evaluation of the pilot.
03/29/2019
04/12/2019
A160133P6R18002
Audit of GSA's Public Buildings Service Does Not Track and Report All Unused Leased Space as Required
08/10/2018
001
Develop and implement a process to ensure that PBS reports and mitigates all unused space for all non-cancelable occupancy agreements in its lease portfolio.
GSA and OIG are continuing with discussions to resolve an Implementation Plan concerning these recommendations.
A160133P6R18002
Audit of GSA's Public Buildings Service Does Not Track and Report All Unused Leased Space as Required
08/10/2018
002
Take action to ensure that existing and future non-cancelable occupancy agreements comply with PBS's policy.
A170097Q7P19001
FAS Cannot Evaluate the FASt Lane Program's Performance for Contract Modifications
10/24/2018
001
Implement a process to evaluate and accurately report the FASt Lane Program performance for contract modifications that identifies and tracks FASt Lane modifications upon submission of the modification requests.
10/31/2019
10/31/2019
Open OIG Recommendations Not Fully Resolved as of March 31, 2019
Audits with Management Decisions and Approved Due Dates
Number
and Title of Report
Report Issue Date
Recommendation Number
Entire Recommendation
Original Due Date
Current Due Date
A160134P2R19001
Audit of the Public Buildings Service's Use of Contract Employees in the New England and Northeast and Caribbean Regions
12/12/2018
001
Implement, and maintain the management controls and policies and procedures necessary to ensure that PBS is not awarding and administering contracts in a manner that creates prohibited personal services contracts.
GSA issued its response concerning the audit report and is awaiting GSA OIG's feedback.
A160134P2R19001
Audit of the Public Buildings Service's Use of Contract Employees in the New England and Northeast and Caribbean Regions
12/12/2018
002
Direct Regional
Management to ensure that: a. Controls are strengthened to ensure that personnel in charge of service contracts adhere to and enforce contract requirements. b. Contract time limits are adhered to. c. Contracting officers are aware of schedule timeframe limitations prior to awarding any contract, especially for Temporary Administrative and Professional Staffing
contracts. d. The Region recoups the $2,515 overpayment identified in this audit. e. Contracting officers analyze proposed prices for accuracy prior to award. f. Contracting officers and CORs review invoices and supporting documentation prior
to making any payments to contractors. g. CORs are properly certified and designated prior to being assigned contract oversight responsibilities.
Open OIG Recommendations Not Fully Resolved as of March 31, 2019
Audits with Management Decisions and Approved Due Dates
Number
and Title of Report
Report Issue Date
Recommendation Number
Entire Recommendation
Original Due Date
Current Due Date
A170120OTF19001
Limited Scope Audit of the Technical Security Controls for the Enterprise Content Management System
12/19/2018
001
Ensure that the technical security control weaknesses identified by our audit are mitigated in accordance with the applicable standards, guidelines, and recommendations as defined by GSA IT, NIST, and CIS.
12/31/2019
12/31/2019
A170120OTF19001
Limited Scope Audit of the Technical Security Controls for the Enterprise Content Management System
12/19/2018
002
Assess applicable GSA IT policies to determine the most appropriate technical security.
12/31/2019
12/31/2019
A170027P6R19002
Audit of Environmental Issues at the Goodfellow Federal Complex in St. Louis, Missouri
03/15/2019
001
Conduct a comprehensive assessment of the PBS Occupational Safety and Health Program, focusing on the program's ability to ensure compliance with applicable occupational safety and health requirements. Take corrective action to address any weaknesses identified through the assessment.
GSA is developing its response concerning the audit report. The due date is 5/15/2019.
A170027P6R19002
Audit of Environmental Issues at the Goodfellow Federal Complex in St. Louis, Missouri
03/15/2019
002
Finalize updates to the GSA Occupational Safety and Health Program Order to ensure transparency and adherence to OSHA reqs regarding environmental contamination in PBS facilities.
Open OIG Recommendations Not Fully Resolved as of March 31, 2019
Audits with Management Decisions and Approved Due Dates
Number
and Title of Report
Report Issue Date
Recommendation Number
Entire Recommendation
Original Due Date
Current Due Date
A170027P6R19002
Audit of Environmental Issues at the Goodfellow Federal Complex in St. Louis, Missouri
03/15/2019
003
Institute controls to ensure that the safety of tenants, contractors, and visitors to the Goodfellow complex is protected by preventing exposure to all hazards and posting safety plans when appropriate.
GSA is developing its response concerning the audit report. The due date is 5/15/2019.
A170027P6R19002
Audit of Environmental Issues at the Goodfellow Federal Complex in St. Louis, Missouri
03/15/2019
004
Institute controls to ensure that PBS has a complete and publicly accessible repository for all environmental studies conducted on any and all of its properties in the Heartland Region.
A170027P6R19002
Audit of Environmental Issues at the Goodfellow Federal Complex in St. Louis, Missouri
03/15/2019
005
Institute controls to ensure that all health, safety, and environmental studies are distributed upon completion of the occupants of any Heartland Region property where studies are performed.
A170027P6R19002
Audit of Environmental Issues at the Goodfellow Federal Complex in St. Louis, Missouri
03/15/2019
006
Institute controls to ensure that corrective action is taken and publicly disclosed in response to all health, safety, and environmental studies performed within the Heartland Region.
Open OIG Recommendations Not Fully Resolved as of March 31, 2019
Audits with Management Decisions and Approved Due Dates
Number
and Title of Report
Report Issue Date
Recommendation Number
Entire Recommendation
Original Due Date
Current Due Date
A170047PRR19003
Audit of the PBS National Capital Region's Lease Financial Performance
03/20/2019
001
Quantify potential losses to GSA due to vacant space when planning space consolidation projects, and incorporate this risk analysis into business decisions.
GSA is developing its response concerning the audit report. The due date is 5/20/2019.
A170047PRR19003
Audit of the PBS National Capital Region's Lease Financial Performance
03/20/2019
002
Develop a control to identify when termination rights are upcoming for a lease in order to have time to confirm with the tenant agency if space will still be required.
A170047PRR19003
Audit of the PBS National Capital Region's Lease Financial Performance
03/20/2019
003
Implement a process to ensure timely and accurate execution of lease actions, such as lease awards, extensions, terminations, and tenant improvement adjustments.
A170047PRR19003
Audit of the PBS National Capital Region's Lease Financial Performance
03/20/2019
004
Implement a control to pass through recoveries to tenant agencies as required by PBS policy.
A170047PRR19003
Audit of the PBS National Capital Region's Lease Financial Performance
03/20/2019
005
Reimburse tenant agencies for overpayments from the past 5 years.
A170047PRR19003
Audit of the PBS National Capital Region's Lease Financial Performance
03/20/2019
006
Work with the Office of the Chief Financial Officer to correct accounting errors in the lease FFO tracking process.
Open OIG Recommendations Not Fully Resolved as of March 31, 2019
Audits with Management Decisions and Approved Due Dates
Number
and Title of Report
Report Issue Date
Recommendation Number
Entire Recommendation
Original Due Date
Current Due Date
A170023QTP19002
Audit of the Federal Risk and Authorization Management Program, Program Management Office's Goals and Objectives
03/21/2019
001
Revise the FedRAMP PMO's mission statement to a concise, singular statement.
GSA is developing its response concerning the audit report. The due date is 5/21/2019.
A170023QTP19002
Audit of the Federal Risk and Authorization Management Program, Program Management Office's Goals and Objectives
03/21/2019
002
Revise the FedRAMP PMO's objectives to make them more specific and measurable.
A170023QTP19002
Audit of the Federal Risk and Authorization Management Program, Program Management Office's Goals and Objectives
03/21/2019
003
Review the FedRAMP PMO's mission, goals, and objectives to ensure they align in a cohesive manner.
A170092PRR19004
Audit of IT Security Requirements in GSA Leasing Support Services Contracts
03/21/2019
001
Coordinate with GSA IT to ensure that the IT requirements and solutions for the pending GLS Plus real estate broker solicitation accurately reflect the actual IT security requirements for contractor performance.
GSA is developing its response concerning the audit report. The due date is 5/20/2019.
Open OIG Recommendations Not Fully Resolved as of March 31, 2019
Audits with Management Decisions and Approved Due Dates
Number
and Title of Report
Report Issue Date
Recommendation Number
Entire Recommendation
Original Due Date
Current Due Date
A170092PRR19004
Audit of IT Security Requirements in GSA Leasing Support Services Contracts
03/21/2019
002
Identify other Public Buildings Service contracts through which contractors access
government data through GSA Google or Virtual Desktop Interface accounts to ensure: a. The contracts include terms and conditions necessary to protect the data; and b. Guidance is in place defining roles and responsibilities governing compliance
with applicable IT security requirements.
GSA is developing its response concerning the audit report. The date due is 5/20/2019.
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 GSA 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 are 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 are 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
MEMORANDUM FOR THERESA OTTERY
DIRECTOR
AUDIT MANAGEMENT DIVISION (H1EB)
FROM: LISA L. BLANCHARD
DIRECTOR
AUDIT PLANNING, POLICY, AND OPERATIONS STAFF (JAO)
Subject: Semiannual Report to the Congress on the Number
of Management Decisions
This memo is intended to relate the total management decisions for the period October 1, 2018 through March 31, 2019. The totals are based on H1EB/JA Data Match Report, dated April 3, 2019 and JA's AIS database. The OIG's
management decision statistics are, as follows:
Type of Audit Number of Audits Amount of Better Use Funds Amount of Disallowed Costs
Preaward 15 $121,066,323 $126,261
Postaward 0 $0.00 $0.00
Internal 6 $0.00 $0.00
Totals 21 $121,066,323 $126,261
U.S. General Services Administration � Semiannual Management Report to Congress Page 31
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U.S. General Services Administration � Semiannual Management Report to Congress