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Lax oversight of VA project caused $17.7M overrun, construction collapse

The Office of Inspector General for the U.S. Department of Veterans Affairs issued a report that found both a contractor and VA hospital officials demonstrated “shoddy planning” and poor oversight of an $8.7 million generator project that is $17.5 million over budget.

The VA in June 2014 hired Florida-based BCI Construction for $8.7 million to install a generator system and accompanying structure to house the unit at the Jack C. Montgomery VA Medical Center in Muskogee, Oklahoma. According to the inspector general, the VA did not submit an excavation plan for approval before beginning work. Subsequently, a hillside and parking lot collapsed, and the damage will cost $17.5 million to fix.

Photos show noticeable deterioration of parking lot before collapse. (photos by VA Medical Center employee)

In addition to supervisory and procedural errors, the inspector general also found that BCI’s worksite to be unsafe. Safety inspections were sporadic, and 49 safety violations were never reported to the government contracting officer, which is a violation of VA policy.

The inspector general recommended requiring contracting officer representatives are qualified and follow VA regulations and mandating that employees follow safety inspection guidelines. The current Muskogee hospital director, hired after the collapse, said the facility has implemented the recommendations.

Keep reading this article at: https://www.constructiondive.com/news/report-lax-oversight-of-va-project-caused-177m-overrun-construction-col/520242/

Read the article in The Oklahoman newspaper on this subject at: http://newsok.com/article/5588662/construction-collapse-at-muskogee-va-hospital-will-cost-17.5-million-to-repair-and-was-the-result-of-poor-planning-federal-report-finds

Read the VA’s full OIG report at: https://www.oversight.gov/sites/default/files/oig-reports/VAOIG-15-04678-114.pdf

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OPM’s post-breach contracting efforts fall short again, IG says

The Office of Personnel Management inspector general again found flaws in the agency’s contracting for the credit monitoring and ID theft services it provides to the more than 21.5 million current, former and prospective federal employees affected by the 2015 data breaches.

OPM has gone through two different contracts for post-breach protections. The IG found “significant deficiencies” in the contracting process of the first one, a $20 million contract to Winvale Group and subcontractor CSID. When that contract expired, OPM opted for a contract with ID Experts to provide services for three years with a potential value of $330 million.

In a report released Tuesday, auditors found the agency’s Office of Procurement Operations bypassed some of the Federal Acquisition Regulation and the agencies’ purchasing rules for the ID Experts contract.

The IG found 15 areas of noncompliance, such as designating the contracting officer representative after the award, failing to check the System for Award Management and data-entry errors. Auditors also found incomplete or unapproved contractual documents, including the acquisition plan, market research plan and technical evaluation plan.

Keep reading this article at: http://www.nextgov.com/cybersecurity/2018/03/opms-post-breach-contracting-efforts-fall-short-again-ig-says/146475/

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ICE broke contracting rules in establishing its largest detention facility

The nation’s largest immigrant detention facility was procured improperly, according to a watchdog report, with Immigration and Customs Enforcement in 2014 using an existing agreement with a town in Arizona as a vehicle to establish the center 900 miles away in Texas.

Since 2014, ICE has spent $438,000 annually for Eloy, Ariz., to serve solely as a middleman for a 2,400-bed detention facility in Dilley, Texas, according to the Homeland Security Department’s inspector general. The agency first contracted with the city of Eloy in 2006 to establish the Eloy Detention Center, which the city subcontracted to a company called CCA. ICE reached the agreement with Eloy through a process known as an intergovernmental service agreement, or IGSA.

After an influx of unaccompanied minors and families illegally crossed the border in 2014, ICE looked to boost its detention capacity in south Texas. The agency asked CCA and another contractor to submit proposals for a facility, but only CCA responded. The contractor negotiated directly with ICE on the provisions of the agreement. Rather than create a new contract, ICE went to the city of Eloy and requested that it modify its IGSA to enable CCA to run the South Texas Family Residential Center. The Eloy City Council gave its consent, and the agreement was altered. The provision was set to expire in October 2016, but ICE extended it until 2021.

Keep reading this article at: http://www.govexec.com/oversight/2018/02/ice-broke-contracting-rules-establishing-its-largest-detention-facility/146278

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DHS OIG issues report on the suspension and debarment program

On January 25, 2018, the Department of Homeland Security’s (DHS) Office of Inspector General (OIG) issued report no. OIG-18-41, “DHS Needs to Strengthen Its Suspension and Debarment Program” (Report).  While many may feel that the review, findings, and recommendations of the DHS suspension and debarment program are of little or no consequence to them, there are some interesting takeaways that may provide some important signals to the government contracting community at large.

This Report stems from an October 2016 request by the ranking member of the House Committee on Homeland Security, Representative Bennie Thompson (D-MS), who requested the OIG review the suspension and debarment practices of DHS. As set out in the Report, the OIG found that:

  1. The DHS Suspension and Debarment Instruction is outdated and is missing needed information and guidance;
  2. DHS did not adequately document a majority (5 of 7) of administrative agreements approved between fiscal year 2012 and February of 2017;
  3. DHS did not have a centralized system to track suspension and debarment activities, which may have contributed to DHS’s inaccurate FY2016 reporting of suspension and debarments;
  4. For an 8-month period, FEMA’s suspension and debarment staff did not promptly update government-wide systems to reflect debarments and administrative agreements; and
  5. Staffing levels within DHS may be hindering efficient and effective handling of suspensions and debarments.

Keep reading this article at: https://www.lexology.com/library/detail.aspx?g=87d53f1f-3a3f-4efe-8dbe-cc61998edecd

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Watchdog: GSA assuming ‘unnecessary’ risk in telecom transition

The General Services Administration’s Federal Acquisition Service is engaging in risky business by providing $9 million in contract support services to agencies without securing interagency agreements that ultimately ensure payment.

Such interagency agreements are required by Federal Acquisition Regulation, but FAS provided services anyway in a rush to meet deadlines imposed by the Enterprise Infrastructure Solutions transition, according to an audit by the General Services Administration inspector general. Due to expiring contracts, all agencies must start buying telecommunications and network infrastructure from the EIS contract by 2020.

GSA awarded the $50 billion EIS telecommunications contract last year, and through the Transition Ordering Assistance task order, GSA is also responsible for helping agencies transition from the Networx contract to EIS. However, FAS “has not executed interagency agreements with transitioning agencies for services being provided under the TOA task order.”

Keep reading this article at: http://www.nextgov.com/it-modernization/2018/01/watchdog-gsa-assuming-unnecessary-risk-telecom-transition/145201/

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