Tag Archives: audit

GSA IG Recommends Pricing Review of over 300 Migrated Professional Services Schedule Contracts

The General Services Administration (GSA)’s Office of Inspector General (OIG) published a report on March 21, 2017, titled “Audit of Price Evaluations and Negotiations for the Professional Services Schedule Contracts.” According to the IG audit, GSA’s process to consolidate eight pre-existing schedules into the Professional Services Schedule (PSS) resulted in the award of new contracts without establishing price reasonableness. Contracting officers also used a combined “Pre and Price Negotiation Memorandum” template that does not conform to Federal Acquisition Regulations (FAR) and Federal Acquisition Service (FAS) policy. Finally, contract files lack sufficient documentation to determine fair and reasonable pricing. In February 2017, GSA’s FAS initiated price reevaluations for all 322 migrated contracts to ensure prices awarded were fair and reasonable.

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DCAA Skeletons Come Out to Play!

The ban on using DCAA staff for non-DoD agencies has been lifted.  DCAA may once again provide full audit support to other agencies effective October 1, 2016, as posted on September 30th as a Memorandum for Regional Directors (MRD).

DCAA lifted the ban because they reached their 18 month goal to reduce the Incurred Cost Submission (ICS) inventory.

What will this mean for contractors?  Will halted previous agency audits rise from the dead?  Or will DCAA review accounting and business systems for upcoming proposals? Time will tell if this is more of a sweet treat or terrible trick.

For more information about Aronson please contact Donna Dominguez at ddominguez@aronsonllc.com or (301) 222-8232.

GSA has Not Effectively Digitized its Schedule Contract Files

In a recent audit of Federal Acquisition Services (FAS)’s transition to electronic files, the General Services Administration (GSA) Office of Inspector General (OIG) concluded that “FAS has not effectively digitized Federal Supply Schedules contract files.” The objective of the OIG audit was to determine whether: (1) FAS completed all stages of the Federal Supply Schedules (FSS) contract digitization process, and (2) FAS’s official electronic contract files contain all contract documentation in a usable format and structure as required by federal regulations and FAS policy.

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GAO Decides GSA Schedule Labor Category Descriptions Limit Technical Scope of Responsive Proposals

GSA Schedule contractors need to pay careful attention to a recent protest decision issued by the Government Accountability Office (GAO) in the matter of AllWorld Language Consultants, Inc., B-411481.3 (GAO Jan. 6, 2016). AllWorld filed its protest in response to the issuance of a task order to SOS International, Ltd. (SOSI). The order was awarded by the General Services Administration (GSA), on behalf of the Department of the Air Force, to acquire linguistic support services to be performed in southwest Asia.

The GAO found that SOSI was not responsive to the requirements of the solicitation because the functional descriptions of the Schedule labor categories SOSI proposed did not meet the technical requirements of the RFQ. The GAO held that SOSI’s quotation did not “contemplate providing personnel qualified to perform the solicited requirements.” This decision affirms several contracting principles relevant to Federal Supply Schedule (FSS) vendors. These principals, if ignored can result not only in rejected proposals but potentially, even where the proposal is successful, a protracted post-award protest.

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GSA Faces Management Challenges within the GSA Schedules Program

In its Semiannual Report to the Congress for the period from April 1, 2015 to September 30, 2015, GSA’s Office of Inspector General (OIG) warns the agency faces major challenges in pricing and contractor compliance within the Schedules Program. The OIG reached this conclusion based, in part, on the results of the 30 GSA Schedule pre-award audits performed during the reporting period on contracts with an estimated value in excess of $3.1B. Of the total estimated value, the OIG recommended that $195M be put to better use.

The GSA Schedule contracts continue to generate significant sales and the OIG cites commercial sales practice disclosures and Price Reductions Clause monitoring as significant risk areas. Recently, OIG auditors have also focused their attention on labor categories and ensuring that contractors are fulfilling tasks orders with personnel who meet the qualifications stated on their GSA Contract. Significant findings in the audits from this period included (1) commercial sales practices information that was not current, accurate or complete; (2) proposed labor rates that were overstated; (3) ineffective Price Reductions Clause compliance monitoring; and (4) the use of unqualified labor.

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