The General Services Administration’s Multiple-Award Schedules contracts are troubled by three persistent problems requiring attention, the GSA’s inspector general recently declared.

      The three problem areas are schedules contractors having inadequate sales monitoring and billing systems; contractors having inaccurate and outdated commercial sales disclosures; and GSA achieving less than half of recommended savings, Theodore Stehney, GSA’s assistant inspector general for auditing, wrote in the March 25 memo.

      The issues were identified in preaward audits dating from fiscal 2012 and need management attention now, he added. The IG audited $10.9 billion of estimated sales and recommended $566 million in cost avoidances in fiscal 2012.

      The audit identified gaps in schedules contractor systems.

      “Nearly half of the contractors audited in fiscal 2012 did not have adequate sales monitoring and billing systems,” the IG wrote. Two thirds of the audits identified specific sales and billing deficiencies, and the IG advised recovery of about $2.6 million related to such shortcomings.

      Another problem is that schedules contractor commercial sales disclosures tend to be outdated, inaccurate or incomplete, the IG wrote. Of 25 disclosures reviewed, 21 had one or more of those problems. The flaws and gaps in pricing information make it difficult for contracting officers to obtain fair and reasonable pricing, the memo said.

      For example, in one case, the contractor did not submit pricing for installation services, which may be performed separately by a dealer. However, the same contractor was doing free installations for commercial accounts.

      Finally, although the IG recommended $566 million in cost avoidances, and GSA contracting officers agreed with those, the officers only were able to achieve 43% of the savings, the IG wrote.

More information: IG memo http://goo.gl/KTyZ9s