Smithsonian's Controls Over the National Air and Space Museum Revitalization Project's Contract Modifications Process

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Date Issued

Thursday, September 26, 2024

Submitting OIG

Smithsonian Institution OIG

Other Participating OIGs

Smithsonian Institution OIG

Agencies Reviewed/Investigated

Smithsonian Institution

Components

National Air and Space Museum

Report Number

OIG-A-24-08

Report Type

Audit

Location

Washington,
United States

Number of Recommendations

Questioned Costs

$137,522

Funds for Better Use

Open Recommendations

This report has 10 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
OIG-A-24-08-01	Yes	$0	$0
For future projects using the CMc delivery method, strengthen the PCO review policies and procedures to ensure that the Cost Engineer properly reviews the details included in subcontractor and CMc proposals submitted for PCOs so that they do not allow the reimbursement of costs that are covered by contractual markups. Additionally, the policies and procedures should be modified to ensure that the Cost Engineer documentsthe review of proposals.
OIG-A-24-08-02	Yes	$137,522	$0
Determine, and document, the allowability of the questioned costs of $137,522 for direct costs that were also covered by contractual markups, and recover any amount determined to be unallowable.
OIG-A-24-08-03	Yes	$0	$0
Update the Change Management Plan for situations where the CCB’s decisions or directives overrule current guidance.
OIG-A-24-08-04	Yes	$0	$0
Document and complete CRFs as required by the Change Management Plan for future projects using the CMc delivery method.
OIG-A-24-08-05	Yes	$0	$0
For the questioned PCOs and future projects using the CMc delivery method, require the COTR to request the supporting documentation for proposed credits owed to SI that contains sufficient detail to detmine with the CMc and/or subcontractor applied overhead and profit markup used for their proposed price.
OIG-A-24-08-06	Yes	$0	$0
Determine, and document, the allowability of the questioned costs of $7,915 (or less if the proposed price used a markup that was less than 21 percent) in overhead and profit markup costs from the CMc and/or subcontractors that were not included in the $37,692 in credits from PCOs 810082, 810228 and 810310, and recover any amount determined to be unallowable.
OIG-A-24-08-07	Yes	$0	$0
Determine whether to modify existing directives that will authorize the COTR or Contracting Officer to allow the CMc and/or subcontractors to retain a certain amount of profit from credits on future projects using the CMc delivery method, depending on the size or complexity of the change.
OIG-A-24-08-08	Yes	$3,468	$0
Determine, and document, the allowability of the questioned costs of $3,468 in unallowable overhead and profit markups related to equipment rentals, and recover any amount determined to be unallowable.
OIG-A-24-08-09	Yes	$0	$0
Communicate to the CMc and the NASM Revitalization Project team the contract requirements for markups on equipment rentals for future projects using the CMc delivery method.
OIG-A-24-08-10	Yes	$0	$0
Consider incorporating FAR 31.105(d)(2)(i)(A) or similar language into construction and architect-engineer contracts to address company-owned equipment on future projects using the CMc delivery method.