GSA administrative fees - Recent Audits - General Services Administration - Brief Article

TIG Brief: The Inspector General, Sept-Oct, 2003

Management personnel at a major command headquarters effectively managed military interdepartmental purchase requests in one of two areas reviewed.

Specifically, 75 open military interdepartmental purchase requests valued at over $222 million were valid.

However, command purchasers paid excess administrative fees by contracting directly with the General Services Administration. GSA fees usually range between 2 and 5 percent of the contracted amount.

Based on Audit Agency analysis, the government could receive a potential monetary benefit of $ 5.5 million over the six-year defense plan by using command contracting services which had prenegotiated administrative fees of 1 percent.

ROA F2003-0047-FDM000