GSA Schedule Unqualified Labor Continues to Be A Significant Issue for Vendors

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The use of unqualified labor is rampant problem within the GSA schedule vendor community. We have seen a large uptick in this issue across the board with vendors and this is a reminder that it is responsibility of the schedule holder to provide qualified labor for its GSA Schedule task orders or they can face criminal and civil penalties.

From a recent OIG GSA report: We are also concerned about the recurring problem of contractors providing unqualified labor on schedule contracts, resulting in overcharges to GSA’s customer agencies. In particular, during FY 2015, we found 32 percent of audited services contractors provided labor that did not meet the contract’s minimum qualification requirements.

Contractors are responsible for billing in accordance with contract terms. Likewise, contractors are responsible for providing labor that meets contract-stipulated minimum education and experience qualifications to ensure the quality and timeliness of services performed on government projects. GSA faces the challenge of ensuring that contractors comply with contract terms so that customer agencies receive the level of services they are paying for.

GSA requires each approved Schedule labor category to have a description that includes the minimum experience, minimum education and functional responsibility for the category. The hourly rate for each category is negotiated, in part, based on these qualifications.

The GSA Inspector General has noted on reports to Congress on the Schedules Program that the utilization of unqualified labor is a common finding during audits.

As a result, vendors will notice increase scrutiny during assessment visits and OIG pre award audits in which these offices are requesting to review resumes, timesheets, and other personnel documentation to compare and ensure that the contractor provides individuals who meet or exceed the level of education, experience and expertise approved on your GSA contract. Please note that this review may include subcontractor employees mapped to awarded labor categories on the prime’s GSA contract.

If an individual does not meet the qualifications listed on your GSA contract, this is considered utilization of unqualified labor, and could result in further investigation into the discrepancy by GSA. In most cases, GSA classifies the use of unqualified personnel as an overcharge to the government, which may result in financial, legal and bid protest liability under the false claims act.

When a contractor provides labor that fails to meet these contractual requirements, customer agencies do not receive the level of services they pay for and overpay for the labor that they receive.

Per the agreed upon terms and conditions from the original proposal which was incorporated into your GSA Schedule award:

For each proposed labor category, the Offeror must provide a detailed position description. Position descriptions must include functional responsibilities,

minimum years of experience, minimum educational/degree requirements, and any applicable training or certification requirements.

If you have any questions about labor mapping and GSA Schedule compliance please contact the GCO Consulting Group @ www.govconops.com or scott.davidson@govconops.com

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