GSA PBS JOC Program Management Audit – Issues Continue

By peter.cholakis@verizon.netWhy LEAN Construction Matters

GSA PBS JOC Program Management Audit – Issues Continue:  The General Services Administration (GSA) Public Buildings Service (PBS) has faced scrutiny and criticism in the past for various financial and management issues, including those related to Job Order Contracting (JOC) programs.

Financial Management Issues

  1. Budget Overruns: There have been instances where projects managed by GSA PBS exceeded their budget estimates, leading to increased costs and financial inefficiencies.
  2. Mismanagement of Funds: Audits and reports have sometimes highlighted improper use or allocation of funds, affecting the overall financial health of the agency.
  3. Lack of Accountability: Poor financial tracking and reporting mechanisms have occasionally resulted in a lack of accountability for spending, making it difficult to identify and rectify financial mismanagement.

Job Order Contracting (JOC) Program Management Issues

  1. Inefficient Contracting Processes: Delays and inefficiencies in the contracting process have been a recurring issue, affecting the timely execution of projects.
  2. Lack of Oversight: Inadequate oversight and monitoring of JOC projects can lead to quality control issues and deviations from project specifications.
  3. Contractor Performance: Problems with contractor performance, including failure to meet deadlines and deliver quality work, have been reported. This can be attributed to both the selection process and insufficient management of contractors.
  4. Cost Control: Challenges in controlling costs within the JOC program have led to budget overruns and financial inefficiencies, similar to broader financial management issues within the GSA PBS.  GSA continues to use national average cost data and location factoring for JOC Programs, despite the availability of objective, verifiable, current, granular construction labor, material, and equipment construction task data that is locally researched.

Addressing these issues often requires systemic changes, improved oversight, and stronger accountability mechanisms to ensure better financial and program management.

GSA PBS JOC

GSA PBS continues to faces challenges with the management of JOC Programs and cost control. A recent assessment highlighted deficiencies in pricing for the PBS Southeast Sunbelt Region’s Job Order Construction contracts. The audit revealed inflated or unsustainably low pricing due to flaws in price analyses. Inappropriate use of flawed pricing also impacted project cost estimates. Find out more in the memorandum: [Link to the memorandum](https://lnkd.in/eVmEKpgz)