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