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s	U.S. Environmental Protection Agency	2006-P-00035
£ %M \ Office of Inspector General	September 19,2006
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%; At a Glance
Why We Did This Review
We conducted this audit to
assess the effectiveness of the
U.S. Environmental Protection
Agency's (EPA's)
management of Government
furnished property (GFP).
We specifically sought to
determine whether EPA
properly manages GFP.
Background
As of September 30, 2005,
EPA's contractor-supplied
records indicated about
$110 million in EPA-provided
GFP for 153 contracts. Of this
amount, about $70 million
was for items costing $25,000
or more. EPA can either
perform GFP property
administration functions itself
or have the functions
performed by the Defense
Contract Management Agency
(DCMA) through an
interagency agreement.
For further information,
contact our Office of
Congressional and Public
Liaison at (202) 566-2391.
To view the full report,
click on the following link:
www.epa.qov/oiq/reports/2006/
20060919-2006-P-00035.pdf
Catalyst for Improving the Environment
EPA Needs to Strengthen Oversight of
Government Furnished Property
What We Found
EPA's Office of Acquisition Management (OAM) needs to improve its
management and administrative controls over GFP. OAM did not have accurate
and reliable records to indicate:
•	Which contractors had received EPA-provided GFP,
•	The dollar value of the GFP provided, or
•	Whether contractors had performed the required annual inventories.
OAM also needs to improve the administration of its interagency agreement with
DCMA. OAM did not have accurate records of contracts with GFP to compare
against the DCMA listing of contracts that DCMA was overseeing. As a result,
some contracts with GFP were not being administered by either OAM or DCMA,
and OAM had paid DCMA to administer GFP for some contracts that did not have
any GFP. These conditions generally occurred due to outdated policies and
procedures that did not assign specific responsibility for GFP property
administration. Improved management controls will enable EPA to better manage
its $110 million of GFP provided to contractors and reduce GFP vulnerability to
loss.
What We Recommend
OAM agreed to strengthen its policies and procedures, as well as its administration
of the interagency agreement with DCMA, and initiated corrective actions while
our audit was in progress. We recommend that the Assistant Administrator for
Administration and Resources Management ensure OAM completes current
efforts to update policies and procedures regarding management of GFP, including
the need to maintain accurate records and properly administer interagency
agreements with DCMA. The Assistant Administrator's response indicated
general agreement with our report and concurrence with our recommendation.

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