GSA's Personal Property Repair and Rehabilitation Program:

A Potential for Fraud?

PSAD-80-5: Published: Nov 14, 1979. Publicly Released: Nov 14, 1979.

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The General Services Administration's (GSA) personal property repair and rehabilitation program was established to eliminate duplication of contracting efforts by government agencies and to obtain lower prices through volume contracting and competitive bidding. GSA, through the Federal Property Resources Service and its 11 regional offices, awards indefinite quantity term contracts primarily to small businesses. In fiscal year (FY) 1978, the program reported billings of about $60 million.

The program is not functioning properly and should be greatly improved or reduced to a manageable size. A review revealed the following problem areas: (1) a potential for fraud; (2) unsupported contractor invoices and overcharges; (3) a lack of management controls; and (4) a lack of adherence to contract provisions. GSA management of the program is weak, and the program also lacks: trained contract administrators, adequate preaward contractor reviews, sufficient internal audit coverage, and contract monitoring. In addition, contractors and customer agencies are unsure of their respective responsibilities under the program. The review of 27 contractors with estimated FY 1978 billings of $7.7 million identified questionable charges in almost every case. GAO believes that these problems permeate the entire program.

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