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Report File
Date Issued
Submitting OIG
General Services Administration OIG
Agencies Reviewed/Investigated
General Services Administration
Report Number
A230058P5R25006
Report Type
Audit
Agency Wide
Yes
Number of Recommendations
4
Questioned Costs
$0
Funds for Better Use
$0
Report updated under NDAA 5274
No

Open Recommendations

This report has 4 open recommendations.
Recommendation Number Significant Recommendation Recommended Questioned Costs Recommended Funds for Better Use Additional Details
1 Yes $0 $0

We recommend that the Acting PBS Commissioner provide PBS project teams with annual training on the CMc project delivery method and any updated policies or guidance implemented in response to the audit findings. Training should provide PBS project teams with sufficient information to: 1. obtain adequate price competition for construction work under the GMP; 2. negotiate fees for contract modifications (overhead and profit) based on actual overhead rates and the degree of cost risk for each change; and 3. comply with FAR and GSAR accounting and auditing requirements to ensure that the government only pays actual costs under the GMP.

2 Yes $0 $0

We recommend that the Acting PBS Commissioner update existing controls to ensure proper award and administration of CMc contracts. Revise the existing contract file checklist to include specific requirements for CMc contracts. Implement procedures to review, authorize, and monitor all contract changes that impact the GMP. Implement procedures to delegate Cost Accounting Standards administration responsibilities within PBS to a cognizant federal agency official. Implement procedures for interagency coordination when PBS is not the cognizant federal agency for a contractor. Develop and implement consistent monthly reconciliation procedures to ensure that contractors properly accumulate and record incurred project costs. PBS should also incorporate these procedures in the scope of work for all contracts involved in the monthly reconciliation process.

3 Yes $0 $0

We recommend that the Acting PBS Commissioner implement a comprehensive review and approval process governing the use of the CMc project delivery method for new projects and those projects in the early stages of development (e.g., acquisition planning phase). At a minimum, the process should ensure that: 1. the assigned project teams clearly understand the requirements of the CMc project delivery method; and 2. effective internal controls are in place to properly award and administer the underlying CMc contracts.

4 Yes $0 $0

We recommend that the Acting PBS Commissioner review PBS’s open CMc contracts to determine if PBS can make retroactive adjustments to recover the taxpayer dollars that have been used to pay excessive fees on CMc contracts.

General Services Administration OIG

United States