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Summary of Management Challenges

Summary of Inspector General’s Assessment of GSA’s Major Management Challenges
Acquisition Programs Two issues have been identified within GSA’s acquisition programs. First, pricing and compliance under the Multiple Award Schedule (MAS) program is of concern given that over the past few years, the Office of Inspector General (OIG) found flaws in many of the MAS contractors’ proposals audited, amounting to over $1 billion in proposed contract price reductions and tens of millions in recoveries. Additionally, in April 2009, a MAS vendor agreed to pay the U.S. government $128 million to resolve alleged false claims and contract fraud. Second, the timely transition from the FTS2001 and Crossover contracts to the Networx contracts is of concern since it is one of the largest transitions in telecommunications services ever undertaken by the federal government.
Financial Reporting GSA systems, including its financial system of record (Pegasys), continue to have deficiencies in interoperability and interfaces. As a consequence, GSA management continues to rely heavily on manual workarounds and significant adjusting entries to prepare the financial statements and related note disclosures.
Information Technology GSA’s information technology (IT) challenges include three key issues: (1) the need for improved planning, development and implementation of IT systems; (2) the need for improvements in GSA’s IT Security Program; and (3) the need for increased contract oversight and coordination of managed service offerings and lines of business.
Human Capital Two issues have been identified: (1) succession management strategies to mitigate the risk of projected retirements of the leadership cadre; and (2) the critical gaps in the acquisition workforce, particularly with the implementation of the American Recovery and Reinvestment Act (Recovery Act) of 2009.
Protection of Federal Facilities and Personnel Challenges exist concerning efforts to safeguard federal facility assets and to provide a secure work environment for federal employees because of shortcomings in the Federal Protective Service’s ability to provide security and the availability of funding for building security measures.
Federal Buildings Fund Challenges exist for capital projects and long-term funding. The OIG is concerned that the recent influx of funding from the Recovery Act for capital projects introduces new risks. Further, while GSA devotes its attention to the Recovery Act projects, it is important that long-term funding issues are addressed since funding beyond FY 2009 may not meet GSA’s needs to ensure that buildings are properly maintained.

For the full GSA’s Inspector General’s Assessment of Major Management Challenges and the Agency Management Comments on the Inspector General’s Assessment of Major Management Challenges, please click the links below.

GSA’s Inspector General’s Assessment of Major Management Challenges

Agency Management Comments on the Inspector General’s Assessment of Major Management Challenges

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