Review of Negotiation by GSA's Boston Region of Contracts for A-E and Construction Services

LCD-78-304: Published: Jan 17, 1978. Publicly Released: Jan 17, 1978.

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A 1975 General Services Administration (GSA) internal audit report found violations of Federal Procurement Regulations in contracts awarded by the GSA Boston Region (Region I) Construction Management Division. The circumstances and adequacy of the internal audit report and the effectiveness of Region I's actions to implement improvements recommended in the internal audit report were examined. In addition, Federal Bureau of Investigation (FBI) reports on allegations by a GSA employee of fraud and collusion in Region I's procurements were examined.

The internal audit report noted six deficient areas in architecture and engineering (A-E) procurement: selection of A-E firms, GSA estimates for A-E services, records of price negotiations, submission of cost or pricing data, overpayment to contractor, and certifications of A-E qualifications. The audit report's findings were well founded and indicated management control weaknesses requiring corrective action. However, the auditor did not determine how widespread the deficiencies were. The allegations of fraud by the GSA employee were based on alleged false justifications for using negotiated contracts. These allegedly false justifications appeared to be primarily an internal GSA management matter. It appears that the restrictive solicitations and reports detailed in the audit report are not now prevalent in either advertised or negotiated contracts.

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