GAO Views on H.R. 2580

Legislation has been proposed which would amend the Property and Administrative Services Act to reform contracting procedures and contract supervisory practices of the Federal Government. The bill is aimed at preventing or providing penalties for the types of fraud and abuse that occurred at the General Services Administration (GSA) in the past few years. It prescribes improved procurement and contract administration practices, more stringent audit and reporting requirements, and changes to the procedures for approval of alterations to leased facilities. Under the bill, every person who enters into a contract or agreement with respect to a procurement, transfer, or disposition of property or services must certify that he: (1) has furnished all material information required by the Administrator, GSA, and will furnish all such information; and (2) has not or will not furnish false or misleading information. GAO believes that there is a need to clarify the intended relationship between the bill's requirements for advertised procurements and the existing provisions of the Federal Procurement Regulations. The scope and applicability are unclear in the provision requiring the GSA Administrator to establish and maintain control of all contracts and agreements for the procurement of property under the Act. GAO believes that the requirement for the periodic, regular review of agencies' contracting activities by GSA could create a significant burden on GSA resources. Therefore, the Subcommittee on Government Activities and Transportation may wish to consider modifying this provision to allow for more flexible review requirements. While the section on alteration of leased facilities appropriately addresses GAO concerns on the need for closer congressional scrutiny of alterations to leased space, GAO suggested an addition to this section to repeal the 25-percent Economy Act limitation on alterations to leased buildings.