Multi-Million-Dollar Construction Projects’ Contract Provisions Comply with Federal Guidance, AOC Policies and Industry Standards Although Improvements Can Be Added

Submitting OIG:

Architect of the Capitol OIG

Date Issued:

Friday, July 29, 2022

Agency Reviewed / Investigated:

Architect of the Capitol

Submitting OIG-Specific Report Number:

OIG-AUD-2022-07

Location(s):

Washington, DC

United States

Type of Report:

Audit

Questioned Costs:

Funds for Better Use:

Number of Recommendations:

View Document:

Attachment	Size
Contract-Provisions-Audit-Final-7292022-Signed.pdf	1.88 MB

Related Open Recommendations

Recommendation Number	Recommendation Status	Significant Recommendation
1	Open	No
We recommend that the Architect of the Capitol (AOC) consider structuring future Guaranteed Maximum Price contracts as 1) fixed-price amounts for general conditions and general requirements and 2) cost reimbursement for subcontracts that are fixed-price amounts between the general contractor and subcontractors, to assist in alleviating the AOC’s administrative burden in properly administering the contract.
2	Open	No
We recommend that the Architect of the Capitol (AOC) issue contract modifications for the sampled contracts to include any applicable clauses that the AOC did not include in the contract at the time of award or in any modifications already issued, if the AOC determines that it is feasible to do so.
5	Open	No
We recommend that the Architect of the Capitol (AOC) issue contract modifications to remove the inapplicable clauses included in the contract, if the AOC determines that it is beneficial and feasible to do so.
6	Open	No
As a part of the Architect of the Capitol (AOC) annual review of active contracts to determine whether any contract modifications are necessary, we recommend that the AOC incorporate a review to identify (1) applicable clauses erroneously omitted during the formulation of the contract, (2) applicable contract clauses issued after contract award, and (3) inapplicable contract clauses.
7	Open	No
We recommend that the Architect of the Capitol (AOC) consider requiring its contractors to carry builder’s risk policies on a project-by-project basis, based on an evaluation of the risks that each project poses to the AOC.

Architect of the Capitol OIG

Architect of the Capitol

Vision

The Architect of the Capitol's (AOC) Office of Inspector General (OIG), promotes efficiency and effectiveness to deter and prevent fraud, waste, and abuse in AOC operations and programs. We do this through value-added, transparent, and independent audits, inspections and evaluations, and investigations. The OIG is a high-performing team, promoting positive change and striving for continuous improvement in AOC management and operations. We foster an environment that inspires AOC workforce trust and confidence in our work.

Mission

The OIG promotes efficiency and effectiveness to deter and prevent fraud, waste and mismanagement in AOC operations and programs. We do this through value-added, transparent and independent audits, evaluations and investigations. We strive to positively affect the AOC and benefit the taxpayer while keeping the AOC and Congress fully informed.

The AOC Inspector General (IG) Act of 2007, codified at 2 U.S.C. § 1808, established the OIG. This legislation applies some sections of the IG Act of 1978 as amended, specifically Sections 4, 5 (other than Subsections (a)(13) and (3) and (e)(1)(B) thereof), 6 (other than Subsection (a)(7) and (8) thereof), and 7. The IG is under the general supervision of the Architect of the Capitol. The mission of this independent office is to:

1. Conduct, supervise, and coordinate audits, inspection and evaluations, and investigations relating to AOC programs and operations.

2. Review existing and proposed legislation and regulations that impact AOC programs and operations and comment in the semiannual report regarding the impact on the economy, efficiency, or the prevention and detection of fraud and abuse of such legislation and regulations.

3. Recommend policies for AOC activities to promote economy and efficiency or prevent and detect fraud and abuse in its programs and operations.

4. Provide a means of keeping the Architect of the Capitol and the Congress fully and currently informed about problems and deficiencies relating to the administration of Agency programs and operations and the need for and progress of corrective action. This is generally done by issuing the Semiannual Report to Congress.

“Legislative Branch agencies including the Architect of the Capitol are not subject to the Whistleblower Protection Act or the Whistleblower Protection Enhancement Act; however, AOC employees are covered under the Congressional Accountability Act of 1995, as amended.”

The AOC OIG is a member of the Council of Inspectors General for Integrity and Efficiency.

https://aocoig.oversight.gov/

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Multi-Million-Dollar Construction Projects’ Contract Provisions Comply with Federal Guidance, AOC Policies and Industry Standards Although Improvements Can Be Added

Related Open Recommendations