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Report: Poor Contract Handling Leads EPA to Pay ‘Unallowable’ Fees

1 min read
Jeff Brody

A new watchdog report shows the Environmental Protection Agency overpaid contractors in a $100 million information technology contract due to poor contract management controls. The audit issued Monday by EPA’s office of inspector general reviewed 11 of 64 invoices released between March 2018 and February 2019 through a single task order under the contract with SRA International. The IG said it received a complaint about EPA’s invoices and payments. 

All files reviewed “did not comply with contract requirements” and led to more than $5,100 “unallowable fixed fee” paid by the EPA, the report states. The IG associated the overbilling to staffing problems, high turnover, poor contract file management disorganization and inadequate oversight. 

“However, without adequate review of all invoices… the EPA does not know whether there are further unallowable costs that it has paid for under the task order,” the watchdog said. 

EPA’s Office of Acquisition Solutions plans to investigate the report and to require the contractor to refund the extra amount. 

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