Picture of General Services Administration citing that this report is: Administrator's Semiannual Management Report to Congress, No. 59 ________________________________________________________________________________________________ U.S. General Services Administration Emily W. Murphy Administrator Office of Administrative Services Robert Stafford Chief Administrative Services Officer Office of Executive Secretariat & Audit Management Theresa Ottery Director October 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 & Audit Management, Administrator's Semiannual Management Report to Congress, No. 59, 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 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 19 Open OIG Recommendations Not Fully Resolved as of September 30, 2018 20 Glossary of Terms 29 Appendix 31 ______________________________________________________________________________________________ Message from the Administrator I am pleased to submit this Semiannual Report to Congress summarizing audit-related actions and accomplishments of the U.S. General Services Administration (GSA) for the 6-month period ending September 30, 2018. GSA's responsibility for delivering value and savings in real estate, acquisition, technology, and other mission- support services across Government requires that GSA be highly effective and efficient in managing agency work. The more effectively we manage the programs and risks that this work comprises, the better able we are to help other agencies meet their mission needs on behalf of the American public. Our accomplishments during this 6-month period reflect the high priority placed on audit oversight processes that 1) hold GSA managers and supervisors accountable for ensuring timely development and implementation of corrective actions and 2) improved tracking and data analysis tools. This dual focus has enhanced GSA's internal control framework and improved audit issue analysis and audit resolution monitoring. As measures of the progress made during this reporting period, GSA took final action on 36 contract audits, both pre-award and post-award, and took final action on 48 Office of Inspector General (OIG) audits, a closure rate that is 23 percent higher than the previous reporting period. GSA's actions represent the recovery of $7,098,740 in Government funds, a more than fivefold increase over the previous reporting period. Additionally, GSA resolved several important management audits, of which the below are key: * Strengthened the training and warranting program for Contracting Officers. * Ensured appropriate enforcement of security clearance requirements at the Keating Federal Building. * Expanded process, review, and system controls to ensure effective administration of the Computers for Learning program. * Resolved security configuration issues for GSA's Enterprise Acquisition System Integrated (known as EASi). * Addressed software and technical security control issues for the Federal Acquisition System Sales Reporting Portal. 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. Administrator's Signature ___________________________________________________________________________________________________ Overview This report, GSA's 59th 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 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. 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 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. In addition, GSA's management, which is held accountable for ensuring that appropriate corrective action, is taken in a timely manner, 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 overseen 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 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 Administrator on GAO recommendations as required by law; * 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 for GSA OIG and GAO draft and final reports; * Provide comments on audit decision papers prepared by the GSA 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 April 1, 2018, through September 30, 2018. 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 April 1, 2018, GSA had 113 contract and internal audit reports pending final action. These reports contained financial recommendations totaling $903,758,768 (section A, pages 7 and 8). * Financial recommendations for 100 contract audits totaled $903,758,768. * Financial recommendations for 13 internal audits totaled $0. Between April 1, 2018, and September 30, 2018, GSA finalized management decisions on 36 audit reports concerning nationwide GSA programs and operations. * In 30 of the 36 audits, a total of $2,419,053 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. * In 29 of the 36 audits, it was recommended that $59,527,176 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 48 audits. These audits represent the recovery of $7,098,740 (section C, page 8) in Government funds and the identification of $173,598,431 in potential future savings (section C, page 8). As of September 30, 2018, GSA had 103 open audit reports. Nine of these audits involve claims under appeal or in litigation. _____________________________________________________________________________________________________________ Audits with Disallowed Costs Final action for the six-month period Ending SEPTEMBER 30, 2018 A. Audit reports for which final action had not been taken by the commencement of the reporting period. Number of Audit Reports 113 Disallowed Costs $59,845,477 B. Audit reports on which GSA/OIG management decisions were made during the reporting period. Number of Audit Reports 36 Disallowed Costs $2,419,053 C. Audit reports on which final action was taken during the reporting period. Number of Reports 48 $9,782,598 (i) the dollar value of disallowed costs $7,098,740 - collections....................... $4,625,602 - offset .............................. $225,096 - property in lieu of cash... $0 - surplus ........................... $1,373,915 - other .............................. $874,127 (ii) the dollar value of disallowed costs that were written off by management. $2,683,858 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. Number of Reports 103 $51,331,586 ___________________________________________________________________________________________________ Audits with Better Use Funds (Potential Cost Savings) Final action for the six-month Ending SEPTEMBER 30, 2018 A. Audit reports for which final action had not been taken by the commencement of the reporting period. Number of Audit Reports 113 $843,913,291 B. Audit reports on which 36 management decisions were made during the reporting period. No budget Impact (Actual and Estimated) $59,527,176 Budget Impact $0 C. Audit reports on which final action was taken during the reporting period. 48 $173,598,431 (i) the actual dollar value of recommendations that were actually completed. $0 (ii) the actual dollar value of recommendations that management has subsequently concluded should not or could not be implemented or completed. $0 (iii) the actual dollar value of recommendations that management has subsequently concluded should not or could not be determined (calculated). $0 (iv) the estimated dollar value of ''funds to be put to better use'' as agreed to by GSA management and the OIG. $173,598,431 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. Number of Reports - 103 $708,725,665 _____________________________________________________________________________________________________________________________ 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 A160104P5X17028 M. A. Mortenson Company 02/22/2017 $0 A160106P2X17052 RK Mechanical, Inc. 09/13/2017 $0 A170066P4X18001 Piedmont-Independence Square, LLC 10/17/2017 $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 September 30, 2017, but with Final Action not taken as of September 30, 2018. 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 A100119Q6X11081 Noble Sales Co., Inc. 08/03/2011 $0 Price/settlement negotiated - Negotiations have been completed between Contracting Officer and contractor A130136Q3X14026 Fisher Scientific Company LLC 04/14/2014 $0 In negotiation - Negotiations are proceeding between Contracting Officer and contractor A110139Q9X14028 Alaska Structures, Incorporated 04/24/2014 $1,999,255 Investigation in process - An investigation has been opened by either the OIG or the Justice Department regarding actions taken by the contractor 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 _____________________________________________________________________________________________________________ Contract Audits Audits with Management Decisions made prior to September 30, 2017, but with Final Action not taken as of September 30, 2018. 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 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 In negotiation - A140149P4X15027 Donaldson Interiors, Inc. 03/27/2015 $0 Negotiations are proceeding between Contracting Officer and contractor A140039Q4X15029 High Performance Technologies Innovations, LLC 03/31/2015 $539,872 In negotiation - Negotiations are proceeding between Contracting Officer and contractor 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 In the process of collection - GSA is in the process of collecting funds owed the Government from the contractor A150083QAX16004 LCG Systems, LLC 11/10/2015 $149,663 __________________________________________________________________________________________________ Contract Audits Audits with Management Decisions made prior to September 30, 2017, but with Final Action not taken as of September 30, 2018. 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 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. Mediation in Progress - GSA and the vendor entered a period of mediation to resolve a dispute A140146P4X16017 Cauldwell Wingate Company, LLC 12/21/2015 $0 Mediation in Progress - GSA and the vendor entered a period of mediation to resolve a dispute A140145P4X16018 Pace Plumbing Corporation 12/28/2015 $0 Mediation in Progress - GSA and the vendor entered a period of mediation to resolve a dispute A140148P4X16022 Five Star Electric Corporation 01/29/2016 $0 In negotiation - A150104Q7X16026 Kipper Tool Company 02/23/2016 $57,177 Negotiations are proceeding between Contracting Officer and contractor ________________________________________________________________________________________________________________________________ Contract Audits Audits with Management Decisions made prior to September 30, 2017, but with Final Action not taken as of September 30, 2018. 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 A140147P2X16030 ASM Mechanical Systems, Inc. 03/30/2016 $1,120,928 Mediation in Progress - GSA and the vendor entered a period of mediation to resolve a dispute A160026Q7X16039 Skyline Unlimited, Inc. 05/12/2016 $35,373 In negotiation - Negotiations are proceeding between Contracting Officer and contractor A150085Q9X16043 Mathematica Policy Research, Inc. 06/24/2016 $172,827 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 A150107Q6X16056 Radiance Technologies, Inc. 08/04/2016 $529,097 Price/settlement negotiated - Negotiations have been completed between Contracting Officer and contractor ____________________________________________________________________________________________________________ Contract Audits Audits with Management Decisions made prior to September 30, 2017, but with Final Action not taken as of September 30, 2018. 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 A160046Q6X16057 Franconia Real Estate Services, Inc. 08/05/2016 $1,387 Price/settlement negotiated - Negotiations have been completed between Contracting Officer and contractor A160039Q3X16055 Carahsoft Technology Corporation 08/08/2016 $0 Unresolved - Agreement has not been reached between OIG and Contracting Officer on the Decision Record A150050Q5X16060 Trane U.S. Inc. 08/19/2016 $2,137 In negotiation - Negotiations are proceeding 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 In negotiation - Negotiations are proceeding between Contracting Officer and contractor A160027Q7X16068 Agilent Technologies, Inc. 09/08/2016 $3,352 In the process of collection - GSA is in the process of collecting funds owed the Government from the contractor A160049Q7X16071 Parsons Government Services, Inc. 09/14/2016 $49,989 ______________________________________________________________________________________________________________ Contract Audits Audits with Management Decisions made prior to September 30, 2017, but with Final Action not taken as of September 30, 2018. 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 A160068Q3X16072 Knight Point Systems, LLC 09/15/2016 $23,009 Price/settlement negotiated - Negotiations have been completed between Contracting Officer and contractor A160093Q7X16074 United Liquid Gas Company 09/19/2016 $3,321,947 Mediation in Progress - GSA and the vendor entered a period of mediation to resolve a dispute A140053Q2X16076 EMCOR Government Services, Inc. 09/29/2016 $0 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 Mediation in Progress - GSA and the vendor entered a period of mediation to resolve a dispute A150094Q6X17006 KeyPoint Government Solutions, Inc. 10/17/2016 $370,955 In negotiation - A140133Q9X17007 ARES Corporation 10/27/2016 $2,524,644 Negotiations are proceeding between Contracting Officer and contractor In negotiation - A150059P4X17013 PDS MICCO JV2, LLC 11/29/2016 $0 Negotiations are proceeding between Contracting Officer and contractor __________________________________________________________________________________________________________________________________ Contract Audits Audits with Management Decisions made prior to September 30, 2017, but with Final Action not taken as of September 30, 2018. 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 Mediation in Progress - GSA and the vendor entered a period of mediation to resolve a dispute 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 September 30, 2017, but with Final Action not taken as of September 30, 2018. 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 A160082QAX17038 Advanced Language Systems International, Inc. 04/28/2017 $0 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 A160092Q5X17040 Armag Corporation 05/19/2017 $254 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 ___________________________________________________________________________________________________________________ Contract Audits Audits with Management Decisions made prior to September 30, 2017, but with Final Action not taken as of September 30, 2018. 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 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 A170067Q3X17051 Catapult Technology, Ltd. 09/20/2017 $45,680 In negotiation - Negotiations are proceeding between Contracting Officer and contractor A160056QAX17053 Omniplex World Services Corporation 09/28/2017 $0 In negotiation - Negotiations are proceeding between Contracting Officer and contractor A160129Q6X17054 Galls, LLC 09/28/2017 $117,900 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 A170078Q7X17056 ADTRAV Corporation 09/28/2017 $20,723 In negotiation - Negotiations are proceeding between Contracting Officer and contractor __________________________________________________________________________________________________ Internal Audits Audits with Management Decisions Made Prior to September 30, 2017, but with Final Action not Taken as of September 30, 2018 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 10/31/2018 A170016P6R17005 The Robert A. Young Federal Building Needs Vehicle Collision Prevention Controls 05/10/2017 $0 Audit is in the Implementation Stage 01/31/2019 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. _______________________________________________________________________________________________________________________ Open OIG Recommendations Not Fully Resolved as of September 30, 2018 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 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 10/31/2018 A170016P6R17005 - Robert A. Young Federal Building Needs Vehicle Collision Prevention Controls 05/10/2017 002 Assess the overall building site to ensure it is adequately protected from vehicular threats. 02/28/2018 01/31/2019 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 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 working to achieve agreement on the recommendations for implementation 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 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. __________________________________________________________________________________________________ Open OIG Recommendations Not Fully Resolved as of September 30, 2018 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 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. GSA and OIG are working to achieve agreement on the recommendations for implementation 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 004B Implement internal controls to ensure ESPCs comply with DOE regulations and guidance including witnessing and independently verifying that baselines developed by the energy company are accurate. A150009P5R17006 - PBS National Capital Region's $1.2 Billion Energy Savings Performance Contract for White Oak was Not Awarded or Modified in Accordance with Regulations and Policy 08/24/2017 004C Implement internal controls to ensure ESPCs comply with DOE regulations and guidance including verifying that the financial Selection Memorandum from the energy company is certified as being the best value for the Government. 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. ____________________________________________________________________________________________________________ Open OIG Recommendations Not Fully Resolved as of September 30, 2018 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 005B Implement training for PBS NCR personnel responsible for price reasonableness determinations for ESPC contracting, including the development and use of independent Government estimates. GSA and OIG are working to achieve agreement on the recommendations for implementation 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 005C Implement training for PBS NCR personnel responsible for Contract file documentation requirements. A150009P5R17006 - PBS National Capital Region's $1.2 Billion Energy Savings Performance Contract for White Oak was Not Awarded or Modified in Accordance with Regulations and Policy 08/24/2017 005D Implement training for PBS NCR personnel responsible for Compliance with requirements to hold a Preaward Review Board review prior to award, or if waived, a Postaward Review Board review for applicable task orders. A150009P5R17006 - PBS National Capital Region's $1.2 Billion Energy Savings Performance Contract for White Oak was Not Awarded or Modified in Accordance with Regulations and Policy 08/24/2017 006 Once the procurement of a new O&M contract is secured, as stated in Finding 1, include the Limitation of Government Obligation clause on all non-ESPC O&M services. _________________________________________________________________________________________________ Open OIG Recommendations Not Fully Resolved as of September 30, 2018 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 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 12/31/2018 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 11/30/2018 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 A140006Q6P18001 - Audit of the GSA Federal Acquisition Service's Use of Outside Consultants 03/26/2018 001 The FAS Commissioner implement controls to ensure that all FAS contracting actions for consulting services comply with the FAR and FAS policies/procedures. 03/29/2019 03/29/2019 ___________________________________________________________________________________________________________________________ Open OIG Recommendations Not Fully Resolved as of September 30, 2018 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 A170040Q5P18002 - Audit of FAS's Office of Fleet Management in the Pacific Rim Region Did Not Comply with California State Emissions Regulations, Resulting in a $485,000 Fine 04/19/2018 001 Ensure management adheres to recently issued policy related to new or updated laws and regulations. This may include establishing action plans and consulting with legal counsel to proactively address changes in laws and regulations. 10/31/2018 10/31/2018 A170091P7R18001 - PBS's Leasing for the Eton Square Office Centre Was Not Effective or Compliant With Policies 06/07/2018 001 Necessary building improvements, as identified during market survey tours, are discussed during negotiations and incorporated into terms and conditions of future leases to ensure the lessor resolves the issues and makes those improvements prior to occupancy. GSA and OIG are working to achieve agreement on the recommendations for implementation plans. A170091P7R18001 - PBS's Leasing for the Eton Square Office Centre Was Not Effective or Compliant With Policies 06/07/2018 002 PBS employees follow the PBS Leasing Desk Guide procedures pertaining to accessibility requirements for potential and selected lease properties. _______________________________________________________________________________________________________________ Open OIG Recommendations Not Fully Resolved as of September 30, 2018 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 A160063QTP18003 - Audit of FAS's Wireless Federal Strategic Sourcing Initiative 06/14/2018 001 Use BPA task order prices to determine if the BPAs represent best value in FAS's annual rate review and require that BPA rates are lower than Schedule 70 contract rates. 12/31/2018 12/31/2018 A160063QTP18003 - Audit of FAS's Wireless Federal Strategic Sourcing Initiative 06/14/2018 002 Use BPA task order prices to assist in determining price reasonableness for any future wireless BPAs. 11/30/2018 11/30/2018 A160063QTP18003 - Audit of FAS's Wireless Federal Strategic Sourcing Initiative 06/14/2018 003 Implement controls to ensure that contractors are billing ordering agencies in compliance with the pricing terms of the BPAs. 12/31/2018 12/31/2018 A160063QTP18003 - Audit of FAS's Wireless Federal Strategic Sourcing Initiative 06/14/2018 004 Assess the BPA deliverable requirements to determine the most appropriate recipient(s) of the deliverable information. 11/30/2018 11/30/2018 A160063QTP18003 - Audit of FAS's Wireless Federal Strategic Sourcing Initiative 06/14/2018 005 Implement controls to ensure that all BPA deliverables include required information and are provided to the required recipients. 01/31/2019 01/31/2019 ________________________________________________________________________________________________________ Open OIG Recommendations Not Fully Resolved as of September 30, 2018 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 01/31/2019 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 01/31/2019 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 03/29/2019 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. OIG response is due to GSA on 11/7/2018. 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. A150026PRR18003 - Audit of PBS's American Recovery and Reinvestment Act Sustainability Results 09/21/2018 001 Ensure that senior management provides oversight of the implementation of the minimum performance criteria in future capital projects, including documenting approval to waive these criteria. GSA's response to OIG's final report is due 11/19/2018. _____________________________________________________________________________________________________________________________ Open OIG Recommendations Not Fully Resolved as of September 30, 2018 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 A150026PRR18003 - Audit of PBS's American Recovery and Reinvestment Act Sustainability Results 09/21/2018 002 Review Recovery Act projects and implement building improvements needed to meet the minimum performance criteria. GSA's response to OIG's final report is due 11/19/2018. A150026PRR18003 - Audit of PBS's American Recovery and Reinvestment Act Sustainability Results 09/21/2018 003A Assess results of implemented high- performance green building measures in future capital projects by: Using appropriate and consistent baselines for energy and water use. A150026PRR18003 - Audit of PBS's American Recovery and Reinvestment Act Sustainability Results 09/21/2018 003B Gathering necessary data and information from contractors and delegated agencies to gauge compliance with criteria. A150026PRR18003 - Audit of PBS's American Recovery and Reinvestment Act Sustainability Results 09/21/2018 003C Ensuring methods are in place to compare actual building performance against all minimum performance criteria. A180031ORF18005 - Audit of GSA's Fiscal Year 2017 Travel Card Program 09/25/2018 001 Specify a timeframe for distributing the Travel Card Policy Office's travel card questionable charges report to the OAS regional coordinators. GSA's response to OIG's final report is due 11/23/2018. _______________________________________________________________________________________________________________________ Open OIG Recommendations Not Fully Resolved as of September 30, 2018 Audits with Management Decisions and Approved Due Dates Number and Title of Report Report Issue Date Recommendatio n Number Entire Recommendation Original Due Date Current Due Date A180031ORF18005 - Audit of GSA's Fiscal Year 2017 Travel Card Program 09/25/2018 002A Implement a process to ensure that OAS regional coordinators follow up on questionable charges. The process should include provisions to: Monitor resolution of the questionable charges in accordance with the required timeframe. GSA's response to OIG's final report is due 11/23/2018. A180031ORF18005 - Audit of GSA's Fiscal Year 2017 Travel Card Program 09/25/2018 002B Ensure that regional coordinators receive and review the validity of responses from cardholders' supervisors to the questionable charges reports. A180031ORF18005 - Audit of GSA's Fiscal Year 2017 Travel Card Program 09/25/2018 002C Require and enforce the restriction of travel card use when cardholder supervisors are unresponsive to the travel card questionable charges reports. ____________________________________________________________________________________________________ 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 October 18, 2018 MEMORANDUM FOR THERESA OTTERY DIRECTOR, AUDIT MANAGEMENT DIVISION (H1 EB) FROM: L A 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. April 1, 2018 through September 30, 2018. The totals are based on H1EB/JA Data Match Report, dated October 3, 2018 and JA's AIS database. The OIG's management decision statistics are, as follows: Amount of Amount of Type of Number of Better Use Disallowed Audit Audits Funds Cost Preaward 29 $ 59,527,176 $ 1,840,318 Postaward 1 $ 0 $ 578,735 Internal 5 $ 0 $ 0 Totals 35 $ 59,527,176 $ 2,419,053