We hired the CPA firm of Ollie Green and Company (Ollie Green) to perform agreed-upon procedures to verify contract personnel qualifications on a PBGC contractor, Zimmerman Associates, Inc. Contract No. PBGC01-CT-04-0727, a cost plus fixed fee contract to provide professional staff to manage and operate the Benefits Administration and Payment Department (BAPD) Document Management Center (DMC). The contract was valued at $5.4 million for Fiscal Years ended September 30, 2006 and 2007. The contract became effective September 30, 2005 with four option year periods.
The objective was to determine whether Zimmerman Associates, Inc. processes were adequate to ensure that qualified personnel are assigned on the PBGC contract covering fiscal years ended September 30, 2006 and 2007. Ollie Green found that Zimmerman Associates did not always verify that assigned personnel met experience requirements specified in the contract because there is no contractual requirement to verify experience.
We recommended to PBGC’s Contracting Officer that Zimmerman Associates, Inc. officials be required to implement internal controls and procedures to ensure that required experience is verified and documented in personnel files for all employees prior to assigning personnel to PBGC contracts.
PBGC’s response has been incorporated in its entirety as an appendix to the report. PBGC provided an alternative corrective action in response to our recommendation. We agree with the PBGC’s proposed corrected action for the report’s recommendation.
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