Administration of Repair Contracts Needs Improvement

PSAD-76-179: Published: Dec 27, 1976. Publicly Released: Dec 27, 1976.

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An examination of contracts for repair and overhaul of government property revealed the need for improvement. The General Services Administration (GSA) awarded time and materials contracts, which call for specified rates for labor performed, amounting to $24.4 in fiscal year 1975.

Improper charges were found in eight contracts audited by GAO. Overhead labor charges were improperly added to contract costs. Many contractors failed to show how government-furnished material was used, and some billed GSA for materials not used on orders. GSA did not question contract ceilings based on contractors' estimates, and failed to follow-up results of audits on improper billings. GSA was in general agreement with GAO findings and has initiated action to collect $464,000.

Recommendation for Executive Action

  1. Status: Closed

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

    Recommendation: The Administrator, GSA, should: (1) establish procedures to prevent overcharges on time and material contracts, obtaining more staff if necessary; (2) follow-up on matters uncovered in GSA audit reports; and (3) review contracts to determine needs for further audits.

    Agency Affected:

 

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