Federal Reports

We audited costs claimed by the North Dakota Game and Fish Department under grants awarded by the U.S. Fish and Wildlife Service Wildlife and Sport Fish Restoration Program.

ICE did not adequately justify the need for the sole source contract to house migrant families and spent approximately $17 million for hotel space and services at six hotels that went largely unused between April and June 2021.

Our objective was to determine whether U.S. Customs and Border Protection (CBP) complied with the National Standards on Transport, Escort, Detention, and Search (TEDS).

We are issuing this management alert to advise the Federal Emergency Management Agency (FEMA) that its Coronavirus disease 2019 (COVID-19) Funeral Assistance Program operating procedures contradict FEMA’s previous interpretation of long-standing regulations for ineligible funeral expenses established in FEMA’s Individual Assistance Program and Policy Guide (IAPPG). This interpretation of regulations for ineligible funeral expenses remains unchanged in FEMA Policy 104-21-0001 (COVID-19-specific policy).

This report presents a summary of the results of our self-initiated audits assessing mail delivery, customer service, and property conditions at three select delivery units in the Columbus, OH, region (Project Number 22-052). These delivery units include the Lewis Center Main Post Office (MPO) in Lewis Center, OH, and the South Columbus Station and East City Annex in Columbus, OH. We previously issued interim reports to district management for each of these delivery units regarding the conditions we identified. In addition, we issued a report on the efficiency of operations at the Columbus, OH, Processing and Distribution Center (P&DC), which services these three delivery units.All three delivery units are in the Ohio 2 District of the Central Area. The three delivery units have a combined total of 74 city routes and 20 rural routes. Staffing at the delivery units during our audit included 82 full-time city carriers, 12 part-time city carriers, 17 full-time rural carriers, 14 part-time rural carriers, 12 full-time clerks, and 11 part-time clerks (see Table 1).

The Office of Inspector General (OIG) evaluated the U.S. Small Business Administration’s (SBA) procedures to award a contract for data analysis and loan recommendation services for Economic Injury Disaster Loan (EIDL) applications and Targeted EIDL Advance applications related to the Coronavirus Disease 2019 (COVID-19) pandemic.To increase loan processing capabilities and quickly disburse loans during the pandemic, SBA used an existing contract awarded to RER Solutions and its subcontractor Rocket Loans set aside for small businesses. SBA initially set a contract ceiling of $100 million and then used emergency contracting authority to increase the contract ceiling to $850 million. This increase was done in a noncompetitive process to quickly administer the COVID-19 EIDL program.To quickly award loans during the COVID-19 economic crisis, SBA relied on an earlier 2018 contract but did not follow the proper procedures to ensure that contract provided the best value to the government. SBA awarded the contract for data analysis and loan recommendation services without adequately ensuring the contract prices were fair and reasonable in accordance with Federal Acquisition Regulation and agency policy.SBA’s needs had changed significantly from the 2018 disaster loan contract to the requirements for processing COVID-19 EIDLs, and those changes were not fully taken into consideration when awarding following contracts. As a result, there is no assurance that the rates SBA paid for services under the data analysis and loan recommendation contract were fair and reasonable.SBA also did not ensure the contractor complied with established size standards to be eligible for a small business set-aside award. In addition, SBA did not ensure the contractor complied with subcontracting limitations, exceeding the limit by $13 million. These awards are intended to help small businesses compete and win government contracts. Instead, the COVID-19 contract was noncompetitively awarded and largely performed by an affiliate of one of the nation’s largest mortgage lenders.We made six recommendations to strengthen SBA’s procurement policies and enhance controls to ensure compliance with SBA’s contracting program requirements. SBA agreed or partially agreed with all six recommendations.