Budget would sustain GSA auditors' role in pre-award contract reviews

The proposed fiscal 2008 budget for the General Services Administration would provide the agency's inspector general with $5 million in reimbursements for scrutinizing the prices offered by vendors seeking multiple award schedules contracts.

The move comes after agency officials had signaled that they might attempt to limit the IG's role in such pre-award audits.

The budget proposal would give the IG reimbursable authority for pre-award audits and surveys of multiple award schedule contracts and governmentwide contracts under the Federal Acquisition Service, but with the understanding that the IG would work with FAS to "pilot alternative methods for reviewing contract-related activities."

Also included is $1 million for the IG's suspension and debarment team, which ensures that GSA follows the law on doing business with contractors that are the subject of federal investigations. GSA's chief acquisition officer leads the effort and the IG supports that work.

"There's been a real increase in that type of activity over the last two years," GSA Budget Director Debi Schilling said Tuesday.

Overall, the GSA auditing office received $47.4 million in the fiscal 2008 proposal, which is slightly less than the $47.8 million proposed in pre-decisional documents obtained by Government Executive late last year. The document indicated that the IG had originally requested $53.6 million.

Language in the bill (H.J. RES. 20) that passed the House last week to fund domestic agencies through the rest of the fiscal year would raise appropriations for the IG office by $8 million from what was in the agency's request for fiscal 2007, from $44.3 million to $52.3 million. Contrary to published reports, House Oversight and Government Reform Committee Chairman Henry Waxman, D-Calif., was not responsible for the language, his spokeswoman said.

GSA Administrator Lurita Doan said Tuesday that she is proud of the agency's overall budget for 2008 and that since her first week at the agency, balancing the budget has been a top priority.

"For many, this detailed and collaborative approach was a new experience," Doan said. "We identified programs that weren't working, and we cut them entirely. Nearly every division within GSA found more innovative ways to accomplish its mission at a reduced cost to the taxpayers. Morale soared."

According to GSA officials, the budget proposal would end "10-15 activities" because they have not produced results.

GSA's fiscal 2008 planned expenditures total about $20.1 billion, with about 1 percent, or $217 million, coming from direct appropriations. GSA also is seeking $344.5 million for its Federal Buildings Fund. Most of GSA's funds come from reimbursements or rent from agency customers.

FAS is projected to have a revenue increase of $348 million, or 4 percent, in fiscal 2008, which is slightly ahead of inflation. GSA officials said they believe this "conservative estimate of revenues" reflects the continuing efforts to build the new FAS organization. The operating expenses for GSA are expected to increase by just $58.6 million for fiscal 2008, which is a 3 percent increase over fiscal 2007.

According to budget documents, GSA's fiscal 2006 net operating surplus was $15 million, but that dropped to $671,000 in fiscal 2007. For fiscal 2008, GSA is estimating a $1.4 million net operating surplus.

Despite past statements denying that GSA was seeking to eliminate the direct appropriation for its Office of Governmentwide Policy, the budget proposal would combine the fund with GSA's operating expenses fund.

The new policy and operations fund would be set at $144.3 million, of which $45 million would be set aside for the Office of Governmentwide Policy. In fiscal 2007, the fund was estimated to receive $52 million in direct appropriations.

Schilling said the policy and the operating expense accounts were combined since the 1990s and that it was not until fiscal 2004 that they were separated. "For such small accounts, it really makes sense to have them combined so we can better address emerging needs," Schilling said. "It makes more sense."