Federal Reports

At the request of the Tennessee Valley Authority's (TVA) Supply Chain, we examined the cost proposal submitted by a company for civil projects and coal combustion residual program management work at TVA's steam electric power plants. Our examination objective was to determine if the company's cost proposal was fairly stated for a planned <br> $300 million contract. In our opinion, the company's cost proposal was overstated. Specifically, we found the company's proposed costs for a Cumberland Fossil Plant (CUF) project and proposed unit rates for a Bull Run Fossil Plant (BRF) project included overstated temporary living assignment (TLA) costs, equipment costs, performance and payment bond costs, labor costs, and insurance costs. In addition, the company (1) understated its small tools rate for the CUF project due to errors in the company's estimate and (2) proposed a fee rate for the CUF project that exceeded the maximum allowable fee rate in TVA's request for proposal (RFP). We also found the company's proposed markup rate for employees who receive no benefits was overstated. We estimated TVA could avoid about $9.62 million on the planned $300 million contract by (1) negotiating appropriate reductions to TLA, equipment, performance and payment bond, labor, and insurance costs; (2) limiting the company's fee rate on the CUF project to the RFP's maximum allowable rate; and (3) negotiating appropriate reductions to unit rates in the BRF proposal. In addition, we suggest TVA negotiate revised markup rates for employees who receive no benefits. (Summary Only)

National Credit Union Administration OIG Semiannual Report to the NCUA Board and the Congress highlighting our accomplishments and ongoing work for the six-month period ending September 30, 2017.

This report summarizes work we initiated and completed during this semiannual period on a number of critical Departmental activities. Over the past 6 months—in addition to issuing our annual Top Management and Performance Challenges Facing the Department of Commerce—OIG completed nine audits, inspections, and public investigative reports. These products addressed programs and personnel associated with the Economic Development Administration (EDA), Economics and Statistics Administration (ESA), Minority Business Development Agency (MBDA), National Oceanic and Atmospheric Administration (NOAA), National Telecommunications and Information Administration (NTIA), and the Department itself.

On September 27, 2017, a former Amtrak electrician pleaded guilty in the Circuit Court of Cook County, Illinois, to theft of Amtrak property. He was sentenced to two days in jail (time considered served), two years of probation and was ordered to pay $1,199.57 in restitution.

The Office of Inspector General (OIG) conducted an audit of Amtrak’s (the company) website security program. Our audit objective was to assess whether current controls provide reasonable assurance that the company’s publicly accessible websites are secure.The company uses numerous information technology (IT) applications accessible to the public via the Internet. Given the company’s reliance on publicly accessible websites, we compared its practices for IT website security to leading practices from the private and public sectors, including those of the National Institute of Standards and Technology.

OIG reviewed purchase card practices within Veterans Integrated Service Network (VISN) 15 based on a September 2015 request from the former Chairman of the House Committee on Veterans’ Affairs. VISN 15 purchase cardholders did not use purchase cards improperly by exceeding the micro-purchase threshold or splitting purchases on a VISN 15 contract for restroom supplies. However, after the contract expired, purchase cardholders made 18 split purchases valued at approximately $73,000 when placing Federal Supply Schedule (FSS) orders to buy restroom supplies from the same vendor that had performed the expired restroom supply contract. These split purchases resulted in unauthorized commitments as well as improper payments. This occurred because purchase cardholders continued to act as if they were still operating under the contract for restroom supplies after it had expired—by placing orders with the same vendor using a General Services Administration (GSA) FSS contract. Although the GSA FSS orders were similar to the orders allowable under the terms of the expired requirements contract, they were now considered split purchases under the terms of the Federal Acquisition Regulation because they were no longer governed by the contract. The split purchases also occurred because the purchase cardholders did not have a clear understanding of what constituted a split purchase. VISN 15’s oversight of these purchase card transactions was ineffective and approving officials did not question what appeared to be the same routine purchases of restroom supplies, which had been occurring year after year subsequent to the expiration of the contract. As of July 2016, VISN 15 officials were not awarding separate contracts to purchase commodity items such as restroom supplies. We recommended the VISN 15 Director submit ratification requests for FY 2015 unauthorized commitments identified in the report, conduct additional focused training on split purchases, and establish more rigorous monitoring mechanisms over the VISN 15 purchase card program.

SIGTARP identifies the most serious management and performance challenges and threats facing the Government in TARP. Our selection is based on the significance and duration of the challenge/threat to the mission of TARP and Government interests; the risk of fraud or other crimes, waste or abuse; the impact on agencies in addition to Treasury; and Treasury’s progress in mitigating the challenge/threat.