ACC653_Fraud_Case_Solution (GSA Contract)(1).doc - CASE STUDY SUGGESTED SOLUTION GSA TERM-CONTRACTING IRREGULARITIES Comment Term-contract abuses

ACC653_Fraud_Case_Solution (GSA Contract)(1).doc - CASE...

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CASE STUDY SUGGESTED SOLUTION GSA TERM-CONTRACTING IRREGULARITIES Comment Term-contract abuses uncovered in the GSA scandals were able to grow and flourish to a large degree because of conditions and procedures inherent to the term contracting program at that time: · The ordering official on a term-contract work order could also be the inspecting and certifying official. · In many cases, term contracts did not include all the items necessary to complete a given task creating a situation where quantities were inflated to compensate for unspecified items of work. · There was a general practice on the part of management to accept procurement violations in issuing term-contract work orders in an environment of getting the job done as the number one priority. · Term contracting was used for projects that were more economically and contractually suited for formal advertising. · The solicitation process in many cases impeded corrective action by providing inaccurate and incomplete information to bidders. To correct these problems in the term-contracting process in GSA as well as addressing many other unique and localized problems, the Office of the Inspector General issued a Management Report to the administrator. This report recommended sweeping changes in the scope, solicitation, award, and administration of term contracts and that a centralized policy be developed clearly identifying the procurement objectives of term contracting and specifically outlining the purposes for using term contracting in lieu of other means of obtaining services. Specifically, the report recommended that this centralized policy place definite limitations on the dollar value of term-contract work orders, restrict dollar amounts that a building manager could authorize, require the ordering-inspecting-certifying process to be split between separate contracting officials, and placed a focus on procurement violations by including such practices as workorder splitting and trade-offs in GSA's penalty guide.
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