$13.7M No-Bid Deal Sparks GSA Showdown Over Federal Rule Breach

0
55
GSA $13.7M Federal Rule Breach

A $13.7 million federal task order has thrust the General Services Administration (GSA) into the spotlight after the agency bypassed procurement protocols, used unauthorized contract channels, and ignored internal warnings, according to a searing watchdog report released Thursday.

The GSA’s Office of Administrative Services allegedly awarded a sole-source contract in February 2024 using a Defense Department blanket purchase agreement (BPA) it had no legal authority to access—effectively signing a check without a valid bank.

“Miracle” Maneuver Raised Red Flags

The report from the Office of Inspector General (OIG) was prompted by a hotline complaint. It revealed that concerns were raised early by a contracting officer who cautioned against the proposed sole-source route, even telling a senior adviser that a competitive bid might be legally required unless someone could “pull a rabbit out of a hat.”

Signup for the USA Herald exclusive Newsletter

That “rabbit,” the OIG says, came in the form of a contract award placed against a DoD BPA the GSA had no jurisdiction to use.

Despite an August 2024 warning from the OIG directly to the GSA’s chief administrative services officer that the arrangement was invalid, the agency continued work under the task order, ultimately spending $2.6 million, including $1.5 million after the stop-work alert.