A Summary of GAO Reports for the week of September 9, 2024

GAO REPORTS:

GPS Modernization: Delays Continue in Delivering More Secure Capability for the  Warfighter

The GAO report identifies significant delays in the Department of Defense's (DOD) efforts to modernize the Global Positioning System (GPS) with a more secure, military-specific signal, known as M-code. The primary reason for these delays stems from technical challenges in developing the space, ground, and user equipment segments, especially with the software for the operational control system and the integration of M-code receivers. These delays have significant implications for federal contractors, particularly those involved in GPS technology development and production, as they may face increased costs, extended project timelines, and potential shortages of critical components like GPS chips and cards, impacting their ability to deliver to the DOD. https://www.gao.gov/products/gao-24-106841

Artificial Intelligence: Agencies Are Implementing Management and Personnel Requirements

The GAO report on artificial intelligence (AI) management and talent requirements finds that federal agencies have fully implemented key provisions of Executive Order 14110 by addressing AI management and talent recruitment, including the creation of AI task forces, talent recruitment initiatives, and AI usage guidelines. The implications for federal government contractors include increased opportunities to collaborate on AI projects, especially with the General Services Administration (GSA) prioritizing AI projects for federal funding, and the need to align with emerging government AI standards and frameworks. https://www.gao.gov/products/gao-24-107332

DOD and VA Transition Programs: Recommendations for Improving Mental Health Support

The GAO report on DOD and VA transition programs highlights deficiencies in mental health support for transitioning service members and veterans, particularly through programs like inTransition and Solid Start. The findings point to challenges in outreach methods and program assessment, which could result in federal contractors facing increased demand for innovative solutions in mental health support services, enhanced outreach strategies, and data-driven program management. https://www.gao.gov/products/gao-24-107752

Science & Tech Spotlight: Generative AI in Health Care

The GAO report finds that federal agencies have implemented key artificial intelligence (AI) management and personnel requirements outlined in Executive Order 14110, including establishing AI task forces and creating recruitment pathways for AI talent. The implications for federal contractors include potential opportunities to collaborate with agencies on AI-related projects, as the government prioritizes AI innovation and the development of secure AI frameworks, particularly for emerging technologies like generative AI and cloud-based solutions. https://www.gao.gov/products/gao-24-107634

Nuclear Waste Cleanup: Adopting Leading Practices Could Strengthen DOE's Engagement with Stakeholders and Governments

The GAO report on nuclear waste cleanup highlights that the Department of Energy's Office of Environmental Management (EM) lacks a national framework for engaging stakeholders and governments, leading to inconsistent practices across cleanup sites. This gap in standardized engagement practices could create challenges for federal contractors involved in the cleanup efforts, as they may face variability in expectations, communication, and regulatory engagement depending on the specific site and leadership involved. https://www.gao.gov/products/gao-24-106014

Ridesharing and Taxi Safety: Information on Background Checks and Safety Features

The GAO report on ridesharing and taxi safety finds that there are significant variations in background check requirements across states and localities, with 46 states requiring checks for ridesharing drivers and only 10 states mandating them for taxi drivers. This creates implications for federal contractors involved in the transportation and security industries, as they may need to navigate varying compliance frameworks for background checks, especially in providing solutions for safety features and systems across jurisdictions. https://www.gao.gov/products/gao-24-107093

Small Business Research Programs: Opportunities Exist for SBA and Agencies to Reduce Vulnerabilities to Fraud, Waste, and Abuse

The GAO report on small business research programs finds that the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are vulnerable to fraud, waste, and abuse due to control weaknesses, including a lack of fraud risk assessments by agencies and inadequate data verification. The implications for federal contractors include increased scrutiny and the need for enhanced compliance measures, as the SBA and agencies work to strengthen oversight and reduce vulnerabilities, potentially impacting eligibility and funding opportunities. https://www.gao.gov/products/gao-24-105470

Navy Readiness: Actions Needed to Improve Support for Sailor-Led Maintenance

The GAO report on Navy readiness identifies persistent personnel shortages and inadequate sailor training as significant barriers to completing sailor-led ship maintenance, compounded by outdated logistics systems and insufficient parts. For federal contractors, this presents opportunities in areas like logistics IT modernization and supply chain management, as the Navy seeks to address these deficiencies to improve maintenance processes and ship readiness. https://www.gao.gov/products/gao-24-106525

IRS Workforce: Actions Needed to Address Barriers to Diversity, Equity, Inclusion, and Accessibility

The GAO report on the IRS workforce identifies persistent barriers to diversity, equity, inclusion, and accessibility (DEIA), with disparities in promotion, salary, and separation outcomes for historically disadvantaged racial or ethnic groups, women, and persons with disabilities. For federal contractors, this indicates potential opportunities to support the IRS in addressing these barriers by providing expertise in DEIA-focused program development, performance measurement, and data analytics to help the agency better identify and address workforce inequities. https://www.gao.gov/products/gao-24-105785

SUPPLEMENTAL MATERIAL FOR GAO-24-105785: IRS Workforce Demographic Composition and Employee Outcomes

The GAO report on the IRS workforce highlights disparities in promotion, salary, and separation outcomes for historically disadvantaged racial or ethnic groups, women, and individuals with disabilities. These findings suggest that federal contractors offering DEIA (Diversity, Equity, Inclusion, and Accessibility) consulting or workforce management solutions may find opportunities to support the IRS in addressing these gaps through better data analytics, program design, and performance metrics. https://www.gao.gov/products/gao-24-107365

Emergency Relief Program 2022: FSA Should Publicly Report Progress in Issuing Payments

The GAO report on the Emergency Relief Program 2022 highlights that the Farm Service Agency (FSA) has not publicly reported the progress of payments issued under the program, despite having issued $1.42 billion out of the $3.7 billion allocated by Congress. This lack of transparency in reporting the status of payments could impact federal contractors involved in agricultural support services, as stakeholders may have limited visibility into program performance and funding disbursement, potentially delaying contractor engagement and service delivery. https://www.gao.gov/products/gao-24-107345

Critical Materials: Action Needed to Implement Requirements That Reduce Supply Chain Risks

The GAO report highlights that the Department of Defense (DOD) faces significant risks due to its reliance on foreign sources, particularly China, for rare earth elements and other critical materials essential to national security. For federal contractors, this means navigating new procurement regulations and disclosure requirements that will be implemented between 2025 and 2027, impacting supply chains and compliance efforts. https://www.gao.gov/products/gao-24-107176

Payment Integrity: Significant Improvements Are Needed to Address Improper Payments and Fraud

The GAO report on payment integrity highlights that improper payments and fraud remain significant issues in the federal government, with agencies estimating about $236 billion in improper payments in FY 2023, primarily in Medicare, Medicaid, and unemployment insurance. This ongoing issue indicates that federal contractors working with high-risk programs may need to implement stronger fraud detection and prevention measures, as well as maintain compliance with evolving government payment integrity requirements to avoid improper payments. https://www.gao.gov/products/gao-24-107660

Environmental Sustainability: DOD Should Take Actions to Reduce Single-Use Plastics

The GAO report on environmental sustainability finds that the Department of Defense (DOD) has not yet taken substantial actions to comply with Executive Order 14057's directive to reduce single-use plastics, primarily due to the lack of department-wide guidance and uncertainty about roles and responsibilities for implementing the reduction. This has significant implications for federal contractors as they may encounter emerging requirements related to the procurement of plastic alternatives and sustainability measures, creating opportunities for those offering environmentally friendly products and services. https://www.gao.gov/products/gao-24-106823

National Defense Stockpile: Actions Needed to Improve DOD's Efforts to Prepare for Emergencies

The GAO report on the National Defense Stockpile finds that the Department of Defense (DOD) lacks sufficient data to model the requirements for over 40% of the strategic and critical materials, which poses risks in ensuring adequate stockpiling for emergencies. The implications for federal contractors include potential opportunities in supply chain management and data provision, as the DOD seeks to address these gaps by identifying reliable sources and improving data collection to reduce reliance on foreign materials, particularly from adversarial nations. https://www.gao.gov/products/gao-24-106959

Defense Budget: Additional Information about Military Personnel Realignments Would Facilitate Congressional Oversight

The GAO report on military personnel realignments finds that from 2013 to 2023, the Department of Defense (DOD) realigned nearly $32.9 billion within Military Personnel (MILPERS) appropriations due to changes in cost estimates and emergent requirements, such as the COVID-19 response and overseas operations. The lack of detailed program-level reporting on these realignments hinders congressional oversight, which could impact federal contractors by requiring more detailed financial reporting and adjustments to funding management in defense-related contracts. https://www.gao.gov/products/gao-24-106979

Federal Real Property: Actions Needed to Better Assess Office Sharing Pilot's Broader Applicability

The GAO report on federal real property highlights that while the General Services Administration (GSA) has launched a federal office-sharing pilot to address underused space, it has not developed criteria to assess the scalability or long-term cost savings of the program. This presents implications for federal contractors involved in real estate or facilities management, as GSA may seek contractor assistance in refining data collection, evaluating pilot performance, and helping federal agencies adopt space-sharing solutions that promote cost efficiency and optimized use of federal properties. https://www.gao.gov/products/gao-24-106919

Work Hours and Health: Research Shows That Very Long Hours May Modestly Increase the Risk of Certain Health Outcomes

The GAO report on work hours and health finds that working very long hours (55 or more per week) is associated with a modestly increased risk of stroke and ischemic heart disease, but more research is needed to fully understand the causal relationship. For federal contractors, particularly those involved in workforce management or healthcare services, this report emphasizes the importance of promoting work-life balance and potentially developing programs that mitigate health risks associated with long work hours. https://www.gao.gov/products/gao-24-106772

Behavioral Health: Information on Cost-Sharing in Medicare and Medicare Advantage

The GAO report on behavioral health in Medicare and Medicare Advantage (MA) reveals that beneficiaries in both programs had cost-sharing requirements for a range of behavioral health services in 2024, with traditional Medicare typically applying deductibles and coinsurance, while most MA plans used co-payments. The findings suggest that federal contractors working with healthcare providers or insurers could explore opportunities to help reduce the burden of cost-sharing, offer supplemental behavioral health benefits, or provide administrative support to MA plans in managing compliance with CMS cost-sharing limits. https://www.gao.gov/products/gao-24-106794

Digital Surveillance of Workers: Tools, Uses, and Stakeholder Perspectives

The GAO report on digital surveillance tools used by employers finds that such tools are widely employed across various industries to monitor worker productivity, performance, safety, and workplace security, with privacy concerns being the most frequently raised issue among stakeholders. For federal contractors, particularly those offering technology or HR solutions, the implications include addressing potential privacy risks, ensuring compliance with evolving surveillance regulations, and developing transparent tools that mitigate bias and improve workplace safety without compromising worker well-being. https://www.gao.gov/products/gao-24-107639

Child Care Accessibility: Agencies Can Further Coordinate to Better Serve Families with Disabilities

The GAO report on child care accessibility finds that families with disabilities face significant barriers in accessing and participating in child care programs due to insufficient information, limited availability of appropriate services, and a lack of accommodations. For federal contractors, especially those involved in child care or disability services, this presents opportunities to develop inclusive child care solutions and assist federal agencies in enhancing coordination and resource dissemination to better serve families with disabilities. https://www.gao.gov/products/gao-24-106843

SUPPLEMENTAL MATERIAL FOR GAO-24-106843: Strengthening Federal Government Coordination to Help Families with Disabilities Access Child Care

The GAO report identifies that families with disabilities face significant barriers in accessing child care, including limited availability of inclusive programs, lack of full-time care, and challenges with physical accessibility and staff training. For federal contractors, this highlights opportunities to support federal agencies in improving child care services for families with disabilities by providing accessible solutions, training for child care providers, and developing infrastructure that meets the diverse needs of these families. https://www.gao.gov/products/gao-24-107735

Oak Ridge Mercury Cleanup: Opportunities Exist to Enhance Risk Management and Technology Development

The GAO report on mercury cleanup at Oak Ridge reveals that the Department of Energy's Office of Environmental Management (OREM) faces significant challenges due to the complexity of mercury contamination and outdated risk management approaches, leading to delays and cost increases in cleanup efforts. For federal contractors, this creates opportunities in areas such as risk management, mercury technology development, and waste disposal solutions, as OREM seeks to improve worker safety and reduce the cost and schedule of the cleanup. https://www.gao.gov/products/gao-24-107096

International Infrastructure Projects: China's Investments Significantly Outpace the U.S., and Experts Suggest Potential Improvements to the U.S. Approach

The GAO report on international infrastructure projects highlights that China’s Belt and Road Initiative (BRI) investments significantly outpace U.S. efforts, with China providing $679 billion compared to the U.S.'s $76 billion from 2013 to 2021. For federal contractors, this emphasizes the importance of increasing risk tolerance to attract private sector investment and enhancing U.S. capacity to implement infrastructure projects abroad, particularly by improving timeliness and coordination across agencies. https://www.gao.gov/products/gao-24-106866