http://www.oig.dot.gov/rss.jsp?subject=2 The 10 most recent releases on the U.S. DoT OIG web site related to Acquisition & Procurement en-US webmaster@oig.dot.gov (OIG Webmaster) http://www.oig.dot.gov/images/dot.gif http://www.oig.dot.gov/rss.jsp?subject=2 http://www.oig.dot.gov/item.jsp?id=2581 The Office of Inspector General is initiating an audit of the Federal Aviation Administrations acquisition workforce. This effort is part of our riskbased oversight strategy developed to help the Department of Transportation address management challenges in their acquisition function. Mon, 23 Nov 2009 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2581 http://www.oig.dot.gov/item.jsp?id=2558 The Office of Inspector General is initiating an audit of the Federal Highway Administrations (FHWA) FederalAid Highway Program Oversight of Procurement Practices for American Recovery and Reinvestment Act (ARRA)Funded Contracts at State Departments of Transportation (DOT). Our objective is to assess the adequacy of FHWAs oversight of state DOT contracting practices for awarding ARRA contracts. Wed, 28 Oct 2009 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2558 http://www.oig.dot.gov/item.jsp?id=2582 The Office of Inspector General (OIG) issued a management advisory to the Federal Transit Administration (FTA) on a potentially serious safety issue related to the adequacy of foundations at a segment of the Dulles Corridor Metrorail Project. This issue remains unresolved a year after we first brought it to FTAs attention in a November 2008 Hotline complaint. A credible source contacted OIG asserting that the Metropolitan Washington Airports Authority, the project sponsor, had not conducted sufficient testing on eleven pier foundations and their underlying steel piles that were built 30 years ago, and will support a portion of the projects new guiderail. The FTAs response to our Hotline complaint was incomplete and inconsistent with subsequent engineering information that FTA provided to us. In our management advisory, we prompted FTA to conduct a review of project management performance to assess whether adequate oversight is being conducted on the project. In addition, we urged FTA to develop a plan outlining how it will ensure that sufficient testing of the existing foundations will take place before additional construction is undertaken at the locations in question. Finally, we encouraged FTA to outline additional steps it plans to take to enhance future oversight of the project. We will consider actions taken as a result of this management advisory as part of our planned audit of FTAs Dulles Project oversight, which we announced on November 19, 2009. Thu, 22 Oct 2009 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2582 http://www.oig.dot.gov/item.jsp?id=2549 The Office of Inspector General is initiating an audit of the Department of Transportations (DOT) acquisition function. This effort is part of our riskbased oversight strategy developed to assist DOT address management challenges in its acquisition function. Our objective will be to assess DOTs acquisition function and identify vulnerabilities that could impact DOTs ability to implement an effective and efficient approach consistent with best practices that include Office of Management and Budget guidelines on conducting acquisition assessments under Circular A123. Mon, 19 Oct 2009 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2549 http://www.oig.dot.gov/item.jsp?id=2473 The Transportation Office of Inspector General is working to identify potential business risks for the more than $48 billion in stimulus funds allocated to the Department of Transportation (DOT). One important tool for preventing such risk is the DOT Suspension and Debarment Program that protects the government from doing business with dishonest, unethical, or irresponsible businesses and individuals that pose a risk to the government. The Office of Inspector General issued an advisory report emphasizing the need for timelier processing and reporting of DOT suspension and debarment actions. Greater attention to these areas is needed to ensure government funds, including Recovery Act dollars, are awarded to responsible businesses and individuals. Mon, 18 May 2009 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2473 http://www.oig.dot.gov/item.jsp?id=2454 On April 24, 2009, we issued our report on the audit of the Department of Transportations implementation of earned value management (EVM), and the supportability of estimated security costs for major information technology (IT) investments. An independent firmKPMG, LLP, of Washington, D.C. under contract to the Office of Inspector General (OIG) assessed the effectiveness of DOTs program and practices in these areas, specifically to determine if (1) the earned value management measures included in OMB Exhibit 300 submissions properly reflected project performance, and (2) security costs included in the submissions were supported.KPMG concluded that the Department applied EVM controls inconsistently throughout the Operating Administrations. The Department lacked a standard EVM approach for implementation and was not consistent with requirements specified by OMB; consequently, the EVMSrelated processes used to collect and report the EVM measures included in Exhibit 300 submissions could not be relied upon to properly reflect project performance. Additionally, KPMG found the Department has not established a standard method to accurately and consistently estimate the costs of implementing IT security. As a result, the security cost estimates for Exhibit 300 submissions cannot be fully supported.We made specific recommendations to address these weaknesses. The DOT Chief Information Officer concurred with our findings and recommendations, and has provided plans to take specific actions to implement them. Fri, 24 Apr 2009 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2454 http://www.oig.dot.gov/item.jsp?id=2418 On February 5, 2009, we issued our audit report on the Federal Highway Administrations (FHWA) implementation of Section 307 of the National Highway Systems Designation Act (NHSDA). Section 307 of NHSDA requires the use of the Federal Acquisition Regulation as criteria to determine cost allowability when performing indirect cost rate audits of design and engineering (D&E) firms. Indirect rates are comprised of costs such as executive compensation; employee fringe benefits and wages; facilities charges; and insurance, legal, consultant, and travel costs. State departments of transportation (DOT) use indirect cost rates for reimbursing D&E firms for allowable costs incurred, establishing final contract costs, and negotiating new contracts. Our audit objectives were to evaluate the implementation of NHSDA Section 307 audit requirements, and test the allowability of executive compensation and other high risk indirect cost elements billed by D&E firms on state DOT contracts.Indirect cost rate claims from 21 of our sample of 41 D&E firms included unallowable costssome expressly unallowabletotaling about $15.7 million. About $10.7 million of the $15.7 million were unallowable executive compensation and about $5 million were other unallowable costs. Of the total, state DOT contracts were charged about $5.5 million, of which about $4.4 millionthe Federal sharewas reimbursed with Federalaid funds. Based on the sample test results, we projected that, overall, D&E firms overcharged state DOT contracts for unallowable executive compensation of $41.2 million (the Federal share charged to state DOT contracts is $32.9 million). Lack of accountability at D&E firms and insufficient transaction testing by Certified Public Accountant (CPA) firms were the immediate causes of unallowable costs we found. Further, FHWA and state DOT oversight did not ensure effective monitoring of D&E firms indirect cost rate claims or indirect cost rate audits performed by CPA firms. We recommended that FHWA: (1) require D&E firms to certify their claims and authorize state DOTs to assess penalties when D&E firms claim known unallowable costs; (2) assign responsibility to specific states for overseeing CPA audit work; (3) issue guidance on how to effectively procure audit services; (4) establish an oversight program and process for monitoring state DOTs implementation of Section 307 of NHSDA; and (5) recover the unallowable executive compensation costs and other unallowable expenses identified in this audit. Thu, 05 Feb 2009 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2418 http://www.oig.dot.gov/item.jsp?id=2368 On October 7, 2008, we issued an interim report regarding FAAs System Engineering and Technical Assistance II Contract as part of our ongoing audit of the Use of CostPlusAwardFee (CPAF) contracts within the Department. We found that the performance evaluation plan did not include measurable criteria needed to adequately evaluate contractor performance. Also, descriptions defining adjectival ratings were vague and did not clearly define the basis for rating performance, and performance evaluators were not required to document the rationale for the performance ratings. This allows for unsupported personal opinions for judging contractor performance.The effect of having evaluation criteria without clearly defined metrics, vague definitions of adjectival ratings, and no documentation to support performance ratings could result in inflated contractor performance evaluations and inappropriately approved award fees. Additionally, contracting officials did not justify the cost effectiveness of selecting a CPAFtype contract by evaluating administrative costs versus expected benefits to the Government. Without this evaluation, FAA had no assurance that a CPAF contract was appropriate. Senior FAA officials are implementing actions to meet the intent of our recommendations. Tue, 07 Oct 2008 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2368 http://www.oig.dot.gov/item.jsp?id=2365 On October 6 we issued our report on the Maritime Administrations (MARAD) implementation of controls over payments to Maritime Security Program (MSP) contractors. Our objective was to determine whether payments to MSP contractors were reduced when minimum operating requirements (related to number of days in foreign trade and participation in other Federal programs) were not met. We determined that payments were properly reduced when minimum operating requirements were not met and, further, that MARADs controls are sufficient to ensure that payments to contractors are processed in the correct amounts. However, we made two observations for MARADs consideration regarding (1) MARADs assurance that MSP vessels adhered to cargo preference limitations and (2) MARADs exclusion of liquid cargo from its application of the cargo preference limitation. Neither of these issues affected our results because no MSP vessels have carried the cargo in question. MARAD agreed with our first observation and implemented the necessary procedures during the course of the audit. OIG Counsel is working with MARAD Counsel to resolve the second observation. Mon, 06 Oct 2008 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2365 http://www.oig.dot.gov/item.jsp?id=2339 In a letter dated January 31, 2008, Senator Tom CoburnRanking Member of the Senate Subcommittee on Federal Financial Management, Government Information, Federal Services, and International Securityrequested that we review the San Francisco city governments use of Federal transit funds for the citys bus and transit system, the Municipal Railway (Muni). Specifically, Senator Coburn asked that we determine if the city had used those funds for unauthorized purposes, including directly paying for lobbying activities or replacing city transportation funds diverted for lobbying activities. Federal regulations prohibit the use of Federal funds for such activities. In summary, we found no evidence that the city had used Federal transit funds for unauthorized purposes. We also found that Federal Transit Administration and Muni controls were adequate to ensure proper use of these funds. Wed, 20 Aug 2008 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2339