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IUOCF'MENT REFSPEP
01112 - [A0590828]
Administration of Repair Contrar.ts Neds Improvement.
PSAD-76-179. December 27, 1976. 2 pp.
Report to the Congress; by Elmer B. Staats, Comptroller General.
Issue Area: Federal Prccurement of Goods and Services:
Reasonableness of Prices Under Negotiated Contracts and
Subcontracts (1904).
Contact: Procurement and Systems Acquisition Div.
Budget Function: General Governeent: Other General Government
(806).
Organization Concerned: General Services Adminis,.ration;
Mikelco, Inc.; Midwest Maintenance and Construction, Inc.;
Quality Mfq., Inc., Eastaboga, AL; Western Lift Truck, Inc.
Congressional Relevance: Congress.
An examinatior of contracts for repair and overhaul of
Government property revealed the need for improvement. GSA
awarded d1tine and materials contracts, which call for specitied
ratt. for labor performed, amounting to $24.4 in fiscal year
1975. Findings/Conclusionsi Improper charges were found in
eight contracts audited by GAO. Overhead labor chargc were
i.mproperl added tc contract costs. Manv contractors lailed to
show hcy Govarnaent-furnish5d material %as used, and some billed
GSA for materials not used on orders. GSk did not q1nestion
contract ceilings based on contractors' es~imates, and failed to
follow up results of hudits on imprczper billings. GSA was in
general agreempnt with GAO findings aLd hAs initiated action to
colleci $464,000. Recommendations: The Administration of CEA
should: establish procedures to prevent overcharges on time and
material contracts, obtaining more staff if necessary, followup
on matters uncovered in CSi audit reports; and review contracts
to determine needs for further audits. (H[W)](ViewImageLocal?handle=hein.gao/gaobaacai0001&div=1&collection=&method=preview&ext=.png&size=3)