A Weekly Summary of GAO Reports for the Week of 23 September 2024

Federal Accessibility: OMB Is Tracking Agency Implementation of Its Guidance on Information and Communication Technology

The GAO report found that federal agencies are facing widespread challenges in meeting ICT accessibility standards under Section 508 of the Rehabilitation Act, with low compliance across various aspects such as program management, knowledge building, and accessible ICT creation. The implications for federal government contractors include increased scrutiny on the accessibility of procured ICT products, as agencies are now encouraged to integrate accessibility requirements more thoroughly into procurement processes and are held accountable for ensuring that purchased products meet federal standards. https://www.gao.gov/products/gao-24-107031

Defense Health Agency: Improved Oversight of Contractors Needed to Better Ensure the Quality of TRICARE Network Providers

The GAO report (GAO-24-106434) found that the Defense Health Agency (DHA) needs to improve oversight of its contractors, as some ineligible providers, including those with adverse actions against them, were not excluded from the TRICARE network due to incomplete credentialing processes. This has significant implications for federal government contractors managing healthcare services, as it highlights the need for more rigorous credentialing and monitoring practices to ensure the quality and safety of services provided to TRICARE beneficiaries. https://www.gao.gov/products/gao-24-106434

Charitable Food Assistance: USDA Can Enhance Guidance and Improve Program Performance Assessment

The GAO report (GAO-24-106539) concluded that the USDA needs to enhance its guidance and improve program performance assessment for two key nutrition assistance programs: The Emergency Food Assistance Program (TEFAP) and the Commodity Supplemental Food Program (CSFP). The report highlights the lack of consolidated guidance and measurable performance goals, which could lead to inefficiencies in food distribution and challenges for federal contractors involved in the food supply chain, indicating a need for better oversight and streamlined operations to ensure timely food delivery and program success. https://www.gao.gov/products/gao-24-106539

Environmental Hazards: A Framework for Risk-Informed Decision-Making

The GAO report (GAO-24-107595) focuses on the need for federal agencies to apply a risk-informed decision-making framework to manage environmental hazards, balancing risks to human health, environmental costs, and legal obligations. For federal government contractors, this highlights the increasing importance of structured decision-making processes in contracts related to environmental cleanup, requiring a transparent, participatory approach that can affect both bidding strategies and operational compliance. https://www.gao.gov/products/gao-24-107595

Air Traffic Control: FAA Actions Are Urgently Needed to Modernize Aging Systems

The GAO report (GAO-24-107001) highlights the Federal Aviation Administration's (FAA) urgent need to modernize aging air traffic control (ATC) systems, with many critical systems deemed unsustainable due to issues like spare part shortages and outdated technology. For federal contractors, this report indicates upcoming opportunities and challenges in supporting the FAA’s modernization efforts, requiring attention to stringent timelines, technology updates, and risk mitigation strategies in system upgrades and maintenance. https://www.gao.gov/products/gao-24-107001

Cyber Resiliency: CrowdStrike Outage Highlights Challenges

The GAO report (GAO-24-107733) found that a July 2024 software update from cybersecurity firm CrowdStrike caused widespread system failures across millions of Windows systems, highlighting vulnerabilities in supply chain risk management, testing, and contingency planning. For federal contractors, this underscores the importance of robust cybersecurity practices, especially in testing and managing supply chain risks, as failures can lead to significant disruptions in critical infrastructure and federal operations. https://www.gao.gov/products/gao-24-107733

Department of Education: Preliminary Results Show Strong Leadership Needed to Address Serious Student Aid System Weaknesses

The GAO report found that the Department of Education's modernization of the FAFSA processing system was plagued by delays and defects due to poor leadership, inadequate oversight, and failure to follow disciplined system acquisition practices. For federal contractors, this highlights the critical need for strong leadership and adherence to system development and testing protocols, as failures in these areas can result in significant project delays, costly defects, and contract management issues. https://www.gao.gov/products/gao-24-107783

Temporary Assistance for Needy Families: Preliminary Observations on State Budget Decisions, Single Audit Findings, and Fraud Risks

The GAO report (GAO-24-107798) found that states increasingly shifted TANF spending from direct cash assistance to non-assistance services, while also accumulating large unspent balances and facing unresolved single audit findings, some of which have persisted for years. This has implications for federal contractors involved in TANF-related programs, as there may be heightened scrutiny on financial management and increased opportunities in non-assistance service areas, but also increased risks associated with audit findings and compliance requirements. https://www.gao.gov/products/gao-24-107798

Commercial Real Estate: Trends, Risks, and Federal Monitoring Efforts

The GAO report (GAO-24-107282) found that the commercial real estate (CRE) sector is facing heightened risks due to shifts in remote work and rising interest rates, which have led to declining property values and increasing delinquency rates, particularly in office properties. For federal contractors, this report signals potential opportunities and challenges in government contracts related to real estate, as regulators are intensifying oversight on banks with high CRE concentrations, and contractors may need to navigate stricter financial and operational scrutiny. https://www.gao.gov/products/gao-24-107282

DOD Financial Management: Benefits to Date of Financial Statement Audits and Need to Improve Financial Management Systems

The GAO report (GAO-24-107593) found that while the Department of Defense (DOD) has seen benefits from financial statement audits, such as improved financial systems and operational readiness, it continues to struggle with financial management system weaknesses, including outdated legacy systems and incomplete remediation plans. For federal contractors, this report highlights potential opportunities in system modernization and compliance efforts, but also signals the need for robust financial controls and cybersecurity measures when engaging with DOD contracts. https://www.gao.gov/products/gao-24-107593

Financial Management: DOD Has Identified Benefits of Financial Statement Audits and Could Expand Its Monitoring

The GAO report (GAO-24-106890) found that the Department of Defense's (DOD) financial statement audits have led to significant operational and financial improvements, including enhanced visibility over assets, better inventory management, and mitigation of cybersecurity risks. For federal contractors, this signals both challenges and opportunities in supporting DOD’s ongoing audit remediation efforts, especially in areas requiring modernization of legacy systems and stricter compliance with audit findings to enhance transparency and efficiency. https://www.gao.gov/products/gao-24-106890

Contaminated Excess Facilities: Use of Key Practices Would Strengthen DOE's Disposition Planning Efforts

The GAO report (GAO-24-107173) found that the Department of Energy (DOE) needs to improve its planning for deactivating and decommissioning contaminated excess facilities, as its 2022 plan failed to fully address statutory requirements and incorporate key planning practices, such as prioritizing cost savings and risk reduction. For federal contractors, this highlights opportunities in facility decommissioning and remediation work, but also underscores the importance of effective project management and compliance with regulatory expectations for environmental cleanup and safety. https://www.gao.gov/products/gao-24-107173

Persistent Chemicals: Additional EPA Actions Could Help Public Water Systems Address PFAS in Drinking Water

The GAO report (GAO-24-106523) found that public water systems face significant challenges in treating PFAS (per- and polyfluoroalkyl substances) contamination in drinking water, including difficulties in selecting treatment methods, managing PFAS-contaminated waste, and communicating health risks to the public. For federal contractors, the implications include opportunities in the development of PFAS treatment solutions and waste management strategies, but also the need for adherence to evolving EPA regulations and guidelines, particularly in areas related to environmental health and safety. https://www.gao.gov/products/gao-24-106523

Federal Air Marshal Service: Recommendations to Address Organizational Performance and Workforce Challenges Largely Implemented

The GAO report (GAO-24-107824) found that the Federal Air Marshal Service (FAMS) has largely implemented the recommendations to address organizational performance and workforce management challenges, including improving its ability to assess aviation security countermeasures and managing its workforce health. For federal contractors, this highlights the importance of aligning with evolving federal security requirements, offering opportunities in supporting workforce management and performance optimization within federal agencies. https://www.gao.gov/products/gao-24-107824

FAFSA: Education Needs to Improve Communications and Support Around the Free Application for Federal Student Aid

The GAO report (GAO-24-107407) found that the Department of Education's rollout of the simplified FAFSA was delayed by three months and plagued by technical problems, which reduced the number of FAFSA submissions, especially among lower-income students. For federal contractors, this signals potential opportunities in supporting system improvements and call center management but also highlights the need for effective project management to avoid similar disruptions in critical public services. https://www.gao.gov/products/gao-24-107407

Small Business Innovation Research: Most Agencies Did Not Implement Required Commercialization Pilot

The GAO report (GAO-24-107155) found that most federal agencies participating in the Small Business Innovation Research (SBIR) program did not implement the Commercialization Assistance Pilot Program (CAPP), primarily due to a lack of eligible small businesses or similar existing programs. For federal contractors, this signals that opportunities for additional funding through CAPP are limited, but those working with the Department of Energy, which has implemented CAPP, may benefit from extended research and commercialization funding if they secure matching investments from third parties. https://www.gao.gov/products/gao-24-107155

Federal Lands: Effects of Interior's Policies on Foreign-Made Drones

The GAO report (GAO-24-106924) found that the Department of the Interior's policies restricting the use of foreign-made drones significantly reduced non-emergency drone operations and led to challenges in replacing aging drones due to increased costs and procurement delays. For federal contractors, this implies heightened opportunities in providing compliant drone solutions and services, particularly in emergency management and environmental monitoring, while also navigating strict security and procurement requirements imposed by the new regulations. https://www.gao.gov/products/gao-24-106924

U.S. Customs and Border Protection: Efforts to Improve Recruitment, Hiring, and Retention of Law Enforcement Personnel

The GAO report (GAO-24-107029) found that U.S. Customs and Border Protection (CBP) faced challenges in recruiting, hiring, and retaining law enforcement personnel due to factors such as remote work locations, increased demands on staff, and a decline in the physical fitness of applicants. For federal contractors, this indicates potential opportunities in providing recruitment and retention services or technological solutions to streamline hiring processes, as CBP continues to focus on improving recruitment outcomes and addressing attrition challenges. https://www.gao.gov/products/gao-24-107029

Transition to Civilian Life: Additional Data Analysis and Reporting Would Improve Special Operations Forces Experiences

The GAO report (GAO-24-106587) found that Special Operations Forces (SOF) service members face challenges in transitioning to civilian life, including issues such as high operational tempo and the need for comprehensive medical documentation, which hinder their ability to fully utilize transition programs like TAP. For federal contractors, this underscores potential opportunities in providing tailored transition assistance services to SOF personnel and highlights the need for data-driven improvements in program administration to better support veterans as they transition to the civilian workforce. https://www.gao.gov/products/gao-24-106587

Tracking the Funds: Sample of Fiscal Year 2022 Projects Shows Funds Were Awarded for Intended Purposes but Recipients Experienced Some Challenges

The GAO report (GAO-24-106334) found that fiscal year 2022 Community Project Funding (CPF) and Congressionally Directed Spending (CDS) funds were largely used for their intended purposes, though some recipients experienced challenges such as navigating federal processes and receiving timely agency communications. For federal contractors, this highlights the importance of understanding the complexities of federal funding requirements and the necessity of providing efficient project management to mitigate delays and improve coordination with federal agencies. https://www.gao.gov/products/gao-24-106334

Nonemergency Medical Transportation: Leading Practices Would Help the Federal Transit Administration Evaluate Its Pilot Program

The GAO report (GAO-24-106847) found that while the Federal Transit Administration (FTA) provides funding for nonemergency medical transportation (NEMT), its pilot program, ICAM, lacks an evaluation plan, assessment methodology, and scalability criteria, limiting the agency’s ability to assess the program's overall impact. For federal contractors, this indicates opportunities in NEMT-related services, but also highlights the need for clear performance metrics and long-term sustainability plans when engaging with federal transportation programs. https://www.gao.gov/products/gao-24-106847

Federal Programs: OMB Needs a Structure to Govern and a Plan to Develop a Comprehensive Inventory

The GAO report (GAO-24-107656) found that while the Office of Management and Budget (OMB) has made progress in developing an inventory of federal programs, it has not yet fully implemented a comprehensive inventory or established an effective data governance structure. For federal contractors, this indicates potential opportunities in supporting federal agencies with data management and transparency efforts, as well as a need to stay informed about how OMB's evolving inventory framework may impact reporting and compliance requirements in federal contracts. https://www.gao.gov/products/gao-24-107656

Federal Contractors: Actions Needed to Improve Quality of Performance and Integrity Data

The GAO report (GAO-24-106911) found that the Federal Awardee Performance and Integrity Information System (FAPIIS) contained significant data gaps, particularly in reporting contract terminations and administrative agreements, due to inconsistent awareness and adherence to reporting requirements across various agencies. https://www.gao.gov/products/gao-24-106911

Conservation Reserve Program: Improving How USDA Selects Land Could Increase Environmental Benefits

The GAO report (GAO-24-106311) found that the USDA’s Conservation Reserve Program (CRP) could further improve environmental benefits by refining its land selection methods, such as increasing points for conservation practices that support pollinators and periodically reviewing these methods for effectiveness. For federal contractors, this presents opportunities in offering more targeted environmental solutions and supporting the USDA’s efforts to enhance the cost-effectiveness of conservation initiatives, particularly by contributing expertise in land management and environmental sustainability practices. https://www.gao.gov/products/gao-24-106311

Commercial Aviation: Trends in Air Service to Small Communities

The GAO report (GAO-24-106681) found that small communities across the U.S. experienced a decline in departing flights between 2018 and 2023, driven by workforce shortages, increased airline operating costs, and a shift towards larger aircraft with more seats per departure. For federal contractors, this trend implies potential opportunities to assist in addressing workforce challenges and innovating in transportation services to improve connectivity and efficiency for small community air service programs. https://www.gao.gov/products/gao-24-106681

Clean Water Act: Costs of Compensatory Mitigation Activities for Losses of Aquatic Resources

The GAO report (GAO-24-107493) found that compensatory mitigation activities under the Clean Water Act, such as restoring wetlands and streams, incur various costs for the federal government, third-party mitigators, and permittees. These costs, which include design, approval, land acquisition, site work, maintenance, and long-term stewardship, present implications for federal contractors involved in environmental projects, highlighting opportunities in mitigation services but also the need to manage these multifaceted costs effectively. https://www.gao.gov/products/gao-24-107493

Improper Payments: USDA's Oversight of the Supplemental Nutrition Assistance Program

The GAO report (GAO-24-107461) found that USDA's Supplemental Nutrition Assistance Program (SNAP) had an improper payment rate of 11.7% in 2023, largely due to states failing to verify program eligibility requirements such as citizenship and employment. For federal contractors, this underscores the importance of providing strong oversight and technical assistance in state-administered programs, highlighting opportunities for contractors to support improvements in eligibility verification and payment accuracy systems. https://www.gao.gov/products/gao-24-107461

Presidential Transitions: GSA's Reported Cost for the 2020–2021 Transition and Its Budget Request for the 2024–2025 Election Cycle

The GAO report (GAO-24-107518) found that the General Services Administration (GSA) spent approximately $34.6 million to support the 2020–2021 presidential transition, including costs for office space, IT equipment, and appointee orientation. For federal contractors, this highlights potential opportunities in areas such as office space management, IT infrastructure, and administrative support services for future presidential transitions, as GSA's budget for these activities continues to evolve with inflation adjustments and specific service requirements. https://www.gao.gov/products/gao-24-107518

Climate Resilience: Congressional Action Needed to Enhance Climate Economics Information and to Limit Federal Fiscal Exposure

The GAO report (GAO-24-106937) found that climate change is projected to significantly increase federal fiscal exposure due to rising costs associated with natural disasters and the economic impacts of extreme weather events, such as floods and hurricanes. For federal contractors, this highlights potential opportunities in providing solutions for climate resilience and disaster mitigation, but it also signals increased scrutiny on the cost-effectiveness of climate-related federal investments. https://www.gao.gov/products/gao-24-106937

World Bank Procurement: Risk Monitoring Can be Enhanced as U.S. Businesses Face Challenges Competing

The GAO report (GAO-24-106718) found that U.S. businesses face challenges when competing for World Bank borrower contracts, including preferences for low-cost bids over value-for-money assessments, limited borrower capacity for complex procurements, and concerns over procurement transparency. For federal contractors, this highlights the need for strategies that align with borrower procurement preferences, as well as opportunities to engage in improving procurement oversight and capacity-building for international development projects. https://www.gao.gov/products/gao-24-106718

VA Acquisition Management: Additional Actions Needed in Serving Veterans with Sleep Apnea

The GAO report (GAO-24-107010) found that the VA’s initiative to centralize the distribution of Positive Airway Pressure (PAP) devices for veterans with sleep apnea addressed inefficiencies, inconsistent pricing, and supply availability but still lacks clear performance metrics to assess its success. For federal contractors, this highlights opportunities in healthcare logistics and supply chain management while underscoring the importance of tracking performance metrics to ensure efficiency and improved patient outcomes in government contracts. https://www.gao.gov/products/gao-24-107010

Ukraine: DOD Could Strengthen International Military Training Coordination by Improving Data Quality

The GAO report (GAO-24-107776) found that the Department of Defense's (DOD) coordination of international military training for Ukrainian forces could be improved by addressing data quality issues in its tracking systems, such as blank and mislabeled fields. For federal contractors, this highlights potential opportunities in enhancing data management and system efficiency for training programs, especially in high-stakes defense and international collaboration environments. https://www.gao.gov/products/gao-24-107776

Status of Open GAO Recommendations to the Director of National Intelligence

The GAO report (GAO-24-107671) found that while the Office of the Director of National Intelligence (ODNI) has made progress in implementing some GAO recommendations, 36% of recommendations since 2011 remain open, particularly in areas like workforce management, intelligence infrastructure, and personnel vetting. For federal contractors, this emphasizes opportunities in supporting ODNI through improvements in data management, cybersecurity, and infrastructure, while also pointing to the need for sustained attention to compliance and security reforms within the intelligence community. https://www.gao.gov/products/gao-24-107671

Hanford Cleanup: Alternatives for Treating and Disposing of High-Level Waste Could Save Billions of Dollars and Reduce Certain Risks

The GAO report (GAO-24-106989) found that the Department of Energy's (DOE) current approach to treating high-level radioactive waste at the Hanford Site remains costly and inefficient, with unresolved technical challenges and limited analysis of alternative methods that could reduce both costs and risks. For federal contractors, this indicates potential opportunities in exploring less expensive and more effective waste treatment technologies, particularly if DOE reconsiders its current strategy and incorporates risk-informed decision-making to optimize cleanup efforts and meet legal requirements. https://www.gao.gov/products/gao-24-106989

Foreign Disinformation: Defining and Detecting Threats

The GAO report (GAO-24-107600) found that foreign disinformation, particularly from Russia, China, and Iran, continues to pose a significant threat to U.S. national security, with tactics including fake social media accounts, cyber-enabled methods, and state-sponsored propaganda. For federal contractors, this highlights the importance of being aware of disinformation risks when working with federal agencies, as well as the potential to support government efforts in countering foreign malign influence through technological solutions and cybersecurity expertise. https://www.gao.gov/products/gao-24-107600

COVID-19 Relief: States' and Localities' Fiscal Recovery Funds Spending as of March 31, 2024

The GAO report (GAO-24-107301) found that states and localities had obligated 84% and 76% of their respective Coronavirus State and Local Fiscal Recovery Funds (SLFRF) awards by March 31, 2024, with the majority of the funds used for replacing lost revenue and addressing negative economic impacts from COVID-19. For federal contractors, this indicates potential opportunities in providing services related to economic recovery, infrastructure projects, and government services as recipients work to spend the remaining funds before the final 2026 deadline. https://www.gao.gov/products/gao-24-107301

Biomedical Research: Improvements Needed to the Quality of Information About DOD and VA Contributions to Drug Development

The GAO report (GAO-24-107061) found that both the Department of Defense (DOD) and Veterans Affairs (VA) have contributed significantly to biomedical research and development, but gaps in reporting patents and clinical trial results hinder the full assessment of their impact. For federal contractors, this highlights opportunities to support improved reporting processes, compliance with patent disclosure requirements, and better management of clinical trial information, ensuring transparency and alignment with legal mandates in federally funded research projects. https://www.gao.gov/products/gao-24-107061

Public Safety Officers' Benefits Program: Transparency, Claims Assistance, and Program Management Improvements Needed

The GAO report (GAO-24-105549) found that the Public Safety Officers' Benefits (PSOB) program faced challenges with transparency, claims assistance, and program management, including delays in reporting and insufficient outreach to potential beneficiaries. For federal contractors, this highlights opportunities to support the PSOB in improving reporting processes, outreach efforts, and performance management systems, especially in developing strategies that enhance claims processing efficiency and ensure that eligible public safety officers are aware of and able to access their benefits.  https://www.gao.gov/products/gao-24-105549

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