Excluded Parties List System: Suspended and Debarred Businesses and Individuals Improperly Receive Federal Funds
GAO-09-174
Published: Feb 25, 2009. Publicly Released: Feb 26, 2009.
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Highlights
To protect the government's interests, any agency can exclude (i.e., debar or suspend) parties from receiving federal contracts or assistance for a range of offenses. Exclusions of companies or individuals from federal contracts or other funding are listed in the Excluded Parties List System (EPLS), a Web-based system maintained by GSA. Recent allegations indicate that excluded parties have been able to receive federal contracts. As a result, GAO was asked (1) to determine whether these allegations could be substantiated and (2) to identify the key causes of any improper awards and other payments detected. GAO investigated parties that were excluded for offenses such as fraud, theft, and violations of federal statutes and received awards in excess of $1,000.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| General Services Administration | To improve the effectiveness of the suspension and debarment process, the Administrator of General Services should issue guidance to procurement officials on the requirement to check EPLS prior to awarding contracts and to suspension and debarment officials on the 5-day entry and contractor identification number requirements. | In February 2009, we reported on control weaknesses associated with the General Services Administration's (GSA) Excluded Parties List System (EPLS). We recommended that GSA issue guidance to suspension and debarment officials on the 5-day entry and contractor identification number requirements. In response to our recommendation, GSA issued a memorandum in April 2010 to GSA suspension and debarment personnel, which states that GSA's new goal for the GSA Suspension and Debarment program is to make EPLS entries within 2 working days, but no later than 3 working days after a decision letter is signed. Further, the GSA memorandum reminds suspension and debarment personnel that all firm... listings in EPLS must include a firm's Data Universal Numbering System (DUNS) contractor identification number. GSA has taken important steps toward improving the internal controls associated with the EPLS by issuing guidance on timeframes for EPLS entries and requirements for including a firm's contractor identification number in the EPLS.
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| General Services Administration | To improve the effectiveness of the suspension and debarment process, the Administrator of General Services should ensure that the EPLS database requires contractor identification numbers for all actions entered into the system. | In February 2009, we reported on control weaknesses associated with the General Services Administration's (GSA) Excluded Parties List System (EPLS). We recommended that GSA improve the effectiveness of the suspension and debarment process by ensuring that the EPLS database requires contractor identification numbers for all actions entered into the system. In response to our recommendation, and according to GSA's work release notes, GSA noted that between June and September 2010, GSA added a capability to EPLS that requires that a firm's contracting identification number from the Data Universal Numbering System (DUNS) be entered when an EPLS user adds a new firm record or updates a firm's...
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| General Services Administration | To improve the effectiveness of the suspension and debarment process, the Administrator of General Services should strengthen EPLS search capabilities to include common search operators, such as AND, NOT, and OR. | In February 2009, we reported on improper contracts and payments that we attributed to ineffective management of the General Services Administration's (GSA) Excluded Parties List System (EPLS). Specifically, we found that GSA's EPLS contained insufficient search capabilities for agencies to use to identify suspended and disbarred companies or individuals prior to approving contract awards or payments made to them. We recommended that GSA strengthen the EPLS's search capabilities so that the EPLS can support the use of search operators such as AND, NOT, and OR. In federal fiscal year 2011, and in response to our recommendation, GSA strengthened the EPLS's search capabilities by including...
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| General Services Administration | To improve the effectiveness of the suspension and debarment process, the Administrator of General Services should take steps to ensure that the EPLS points of contact list is updated. | In February 2009, we reported on control weaknesses associated with the General Services Administration's (GSA) Excluded Parties List System (EPLS). We recommended that GSA improve the effectiveness of the suspension and debarment process by taking steps to ensure that the EPLS points-of-contact (POC) list is updated. In February 2010, and in response to our recommendation, GSA completed steps to institute a capability where the EPLS sends quarterly emails to listed POCs to update and verify their status and information. POCs have 30 days to respond to the notice. After 30 days, a report is sent to the EPLS Administrators that provides a list of agencies who have verified their...
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| General Services Administration | To improve the effectiveness of the suspension and debarment process, the Administrator of General Services should place a warning on the Federal Supply Schedule Web site indicating that prospective purchasers need to check EPLS to determine whether vendors are excluded and explore the feasibility of removing or identifying excluded entities that are listed on the GSA Schedule. | In February 2009, we reported on control weaknesses associated with the General Services Administration's (GSA) Excluded Parties List System (EPLS). We recommended that GSA improve the effectiveness of the suspension and debarment process by placing a warning on the Federal Supply Schedule Website, indicating that prospective purchasers need to check EPLS to determine whether vendors are excluded, and explore the feasibility of removing or identifying excluded entities that are listed on the GSA Schedule. In January 2010, GSA implemented a capability on its GSA Advantage Website that automatically warns prospective purchasers about excluded contractors identified in the EPLS, provides an...
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Assignment of contract proceedsContractor debarmentDatabase management systemsDatabasesErroneous paymentsFederal agenciesFederal fundsFederal procurementFederal records managementFunds managementGovernment contractsImproper award of contractInvestigations by federal agenciesInvestigations into federal agenciesPrivate sectorProcurement policyProcurement practicesQuestionable procurement charges