GAO (Government Accountability Office)

What is GAO (Government Accountability Office)?

The Government Accountability Office (GAO) is an independent, non-partisan agency that works for Congress. In the realm of government contracting, the GAO plays a critical role in ensuring accountability and transparency in how federal agencies spend taxpayer money on goods and services acquired through contracts.

Definition

The GAO, often referred to as the "congressional watchdog," is empowered to investigate virtually any aspect of the federal government, including contracting activities. This includes reviewing contract awards, evaluating program performance, auditing financial transactions, and investigating allegations of fraud, waste, and abuse. Their legal authority stems primarily from the Budget and Accounting Act of 1921, as amended, and subsequent legislation. For government contractors, understanding the GAO's role is essential because their findings can directly impact contract performance, future bidding opportunities, and even a contractor's reputation and eligibility for government work. The GAO also resolves bid protests filed by contractors who believe they were unfairly denied a contract award.

Key Points

• Oversight Authority: The GAO has broad authority to review federal agencies' programs and activities, including procurement and contracting.
• Bid Protests: The GAO resolves bid protests, providing an avenue for contractors to challenge contract awards they believe are improper. The process is governed by strict timelines and procedures outlined in GAO regulations.
• Reports and Recommendations: The GAO publishes reports detailing its findings and recommendations for improving government efficiency and effectiveness. These reports often highlight issues related to contracting and can lead to legislative or regulatory changes.
• Contractor Cooperation: Contractors are generally expected to cooperate with GAO investigations. Failure to do so can have serious consequences, potentially leading to suspension or debarment.

Practical Examples

1. Bid Protest Resolution: A company believes it was unfairly denied a contract award because the agency improperly evaluated proposals. The company files a bid protest with the GAO, which investigates the procurement process and issues a decision upholding or denying the protest.
2. Contract Audit and Performance Review: The GAO conducts an audit of a major IT contract to determine whether the contractor is meeting performance goals and delivering the expected value for the government. The GAO's report identifies deficiencies in contract management and recommends improvements to the agency.
3. Investigation of Improper Payments: The GAO investigates allegations of improper payments made to a contractor, potentially uncovering fraud or mismanagement. This can lead to civil or criminal penalties for the contractor and corrective action by the agency.