The U.S. General Services Administration (GSA) has come under scrutiny for bypassing competitive bidding requirements in a $5.6 million pavement services contract at several northern U.S. border stations. The GSA's Office of the Inspector General (OIG) criticized the agency for using an inappropriate preexisting contract for the work, which included road and parking lot construction at six land ports of entry along the U.S.-Canada border.

Improper Use of Preexisting Contract

The GSA’s Public Buildings Service for the Northeast and Caribbean Region (PBS Region 2) used an operations and maintenance services blanket purchase agreement to handle the pavement project, a contract that specifically excluded new construction and non-routine repair services. According to the OIG’s Tuesday report, the project fell outside the contract’s scope and should have been subject to competitive bidding, as required by the Competition in Contracting Act.

The GSA justified its approach by citing the need to expedite the project due to weather conditions in New York State and the deteriorating condition of the border roads. However, the OIG dismissed these reasons, stating they did not justify bypassing federal competition rules.

Small Business Pass-Through Issue

The watchdog report also highlighted concerns that PBS Region 2 created a "pass-through" environment. The women-owned small business that held the original maintenance contract subcontracted nearly all the work to larger firms, undermining the small business contracting set-aside.

This arrangement not only excluded other potential bidders but also raised questions about whether the project was completed at a fair price. The OIG concluded that PBS Region 2’s actions violated federal contracting rules and denied fair competition for the construction work.

Drone Use and National Security Concerns

In addition to the contracting violations, the OIG raised concerns about the use of Chinese-made drones for before-and-after photography at sensitive border facilities. While the drones were used before the government officially banned the manufacturer, the Department of Defense had already flagged the company as a security risk, further complicating the issue.

GSA Response and Disagreements

In response to the report, the GSA acknowledged some of the OIG’s recommendations but disagreed with the watchdog’s interpretation of the contract. The agency argued that the underlying maintenance deal included resurfacing work and deemed the project noncomplex, meaning it did not require competitive procurement.

Despite these disagreements, the GSA committed to improving its oversight of future projects funded by the Infrastructure Investment and Jobs Act (IIJA), which financed the border station pavement work. The OIG warned that rushed project approvals under the IIJA could result in further risks to compliance and fair competition.