Federal Home Loan Bank Board's Management of Its Procurement Activities Should Be Improved

PLRD-81-18: Published: May 13, 1981. Publicly Released: May 20, 1981.

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GAO reviewed certain areas concerning the Federal Home Loan Bank Board's acquisition and management of its new headquarters building and certain personnel activities. The specific concerns were: whether a food concession agreement was being administered properly, deficiencies and irregularities found during an internal audit on the building's construction, Board compliance with federal procurement regulations in its real property transactions, building code violations, compliance with the Architectural Barriers Act, controls over employee merit awards, employee travel controls, and controls over the use of Board vehicles. GAO also reviewed the circumstances surrounding the termination settlement of a design contract.

Due to a lack of authority to lease its property for commercial purposes, the Board is currently seeking a court order declaring the agreement invalid and requiring a food concession to vacate its premises. Because the matter is in litigation, GAO would not discuss whether the concession agreement was being administered properly. GAO believes that the Board included all reportable findings in its audit report on its review of an interior construction and finishing contract. The Board terminated a consultant contract because of problems with time schedules, contract overruns, the budget, and coordination with construction teammembers. The settlement paid included claims which were not substantiated as allowable, resulting in unnecessary costs to the Board. The Board did not adhere to good procurement practices when it designated members who were not disinterested employees to a settlement review board, and did not request its audit office to review the settlement claim before payment. GAO found that the Board did not follow good procurement practices in four past procurements. Building inspections have not been completed and the building is not fully accessible to the physically handicapped. Better controls are needed over Board vehicles. However, Board procedures for justifying and approving employee awards are properly managed. GAO did not review controls over employee travel.

Recommendations for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Chairman of the Federal Home Loan Bank Board should direct the Board's administrative office to require building inspections for that part of the Board's headquarters building where insufficient evidence exists to show that the building has been inspected and complies with GSA building codes.

    Agency Affected: Federal Home Loan Bank Board

  2. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Chairman of the Federal Home Loan Bank Board should require procurement officials to take action, to the extent possible, to bring current contracts in compliance with the Federal Procuremnt Regulations.

    Agency Affected: Federal Home Loan Bank Board

  3. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Chairman of the Federal Home Loan Bank Board should direct Board personnel to establish additional controls to ensure the proper use of credit cards and vehicles.

    Agency Affected: Federal Home Loan Bank Board

  4. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Chairman of the Federal Home Loan Bank Board should require contracting personnel to adopt and comply with the Federal Procurement Regulations on future procurements of real and related personal property.

    Agency Affected: Federal Home Loan Bank Board

  5. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Chairman of the Federal Home Loan Bank Board should direct the Board's administrative office to correct deficiencies found during additional inspections and document such actions.

    Agency Affected: Federal Home Loan Bank Board

  6. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Chairman of the Federal Home Loan Bank Board should direct Board personnel to reduce motor pool costs by: (1) determining the number of vehicles and the operational equipment needed, considering applicable Federal Personnel Management Regulation requirements on mileage and operational equipment restrictions and the cost of other alternatives; (2) devising a more efficient system for using vehicles, considering planned daily trips on a scheduled basis and limiting use by request to only special occasions; and (3) analyzing provisions of current leases to determine the most economical way to reduce the number of leased vehicles.

    Agency Affected: Federal Home Loan Bank Board

 

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