Federal Manager's Daily Report

Auditors found 10 previously flagged and suppressed items still being sold under different part numbers. Image: William Potter/Shutterstock.com

Agencies buying items through the GSA multiple award schedule program were left “at risk of unauthorized surveillance by foreign adversaries” by its failure to screen out telecom and video surveillance services or equipment, an inspector general report has said.

It said that GSA’s Federal Acquisition Service uses two main methods to prevent procurement of certain items from certain sources banned by law and the Federal Acquisition Regulation—self-certification from suppliers and an internal screening process. However, the IG found that the former is “inadequate” and the latter is “insufficient to prevent contractors from including prohibited telecom items on their MAS contract price lists.”

That internal process does not flag all potentially prohibited items nor does it assure that contractors remove prohibited items if they are identified, the auditors said, finding 10 previously flagged and suppressed items still being sold “under slightly different part numbers.”

The report also said that the FAS: “encountered lengthy delays to remove prohibited items from MAS contracts and contract price lists”; “has not taken adequate actions against contractors that repeatedly violate the FAR restrictions on providing or using prohibited telecom items;” does not have a process in place to notify customer agencies about their purchases of prohibited telecom items; and did not initially comply with FAR requirements to include subsidiaries and affiliates of named entities in its efforts to identify prohibited telecom items on MAS contracts.

It said GSA management agreed with its recommendations including to tighten its internal screening process, impose stricter penalties on contractors that repeatedly attempt to offer banned items, and require refunds to agencies that purchased prohibited items.

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