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Office of Inspector General |
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| Title: | FAA Administration and Oversight of Regionally Issued Contracts |
| Date: | September 28, 2004 |
| Type: | Audit |
| AV-2004-094 | |
| Summary: | We issued our final report on FAA’s oversight of regionally issued contracts based on our review of 45 randomly selected contracts worth $29.1 million at three regional offices. We found significant weaknesses in internal controls that could make FAA susceptible to potential fraud, specifically: (1) unauthorized individuals were negotiating, approving, and signing contractual agreements; (2) independent cost estimates to ensure contractor bids were reasonable and complete were not done before contracts were awarded; (3) completed contracts remained open for up to 4 years with unneeded funds; and (4) contract files lacked basic documentation critical for safeguarding the Government’s interests. The internal control weaknesses we identified occurred largely because there was no clear delineation of accountability for the administration and oversight of regional contracting functions. During our review, FAA took timely actions to address our concerns and substantially improve its administration and oversight of regional contracts. |
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