Two days after scrapping a major energy conference because of cost questions, the General Services Administration finds itself under scrutiny again because of big spending on an agency conference, this time a one-day gathering just outside of Washington, D.C. that cost taxpayers almost $270,000.
"This is another sad day for the taxpayer," said Rep. John Mica (R-FL), who told reporters that lawmakers had just been notified earlier on Thursday of this latest spending excess.
"Some of the expenses are just astounding," Mica added, noting the $20,578.24 spent on 4,000 drumsticks - the ones you use on a drum, not for eating - which were given to attendees, along with the $28,364.45 for 4,000 "time temperature picture frames" that were also handed out.
"We are very disappointed to find out that there are more of these parties," said Rep. Jeff Denham (R-CA), who vowed to hold a hearing on this latest GSA story in the next two weeks.
“Instead of clowns and mind readers, we’ve got violinists and guitarists – GSA has really classed up their act," Denham added.
This GSA gathering was a performance reward for employees - many were from the Washington, D.C. area, but others traveled to town for the gathering, which was held just across the Potomac River in Virginia.
The Inspector General of the GSA told lawmakers in a letter that he just learned of this conference last week; Brian Miller said his office has now started a preliminary inquiry.
Here is Miller's letter to Reps. Mica and Denham with more details on what was spent at this conference in November of 2010:
"Pursuant to our reporting obligations to Congress, I write to inform you of an incident that was brought to my attention by Acting Administrator Dan Tangherlini on July 11, 2012. On November 17, 2010, the Federal Acquisition Service (FAS) division of the General Services Administration (GSA) held a one-day performance award ceremony in the Washington, D.C., metropolitan area, featuring a drum band exercise by a third party vendor and speeches from current and former GSA officials. We have begun a preliminary analysis of the information we have received from the Agency and have opened an administrative investigation. Our initial findings show costs upwards of $268,732 for the one-day ceremony. Although these figures may be subject to change, our preliminary review showed the following.
• $34,073.38 for the ceremony venue at the Crystal Gateway Marriott including:
• $20,738.78 in catering charges
• $13,334.60 in AV and room rental charges
• $7,697.22 for a "Commissioner's Reception" at the Key Bridge Marriott including:
• Hors d'oeuvres, beverages, and miniature pastries for 200 attendees
• A violinist and a guitarist
• $140,464.06 for "coordination and logistical management" by Gallagher & Gallagher, Inc. including:
• $104,484.17 for logistics and management services
• $20,578.24 for 4,000 drumsticks given to attendees
• $5,390 for five 55-passenger buses, two mini-buses, and a van
• $10,010.65 for "Mission Possible Agent X" management
• $28,364.45 for 4,000 "time temperature picture frames" provided by Small Wonders.
• $7,810.24 for 68 shadowbox frames provided by Award Crafters.
• $8,587.73 for "Agent X appearance" by JDG Communications, Inc.
• $41,734.93 for travel for 49 attendees.
My office will continue to look into this ceremony in addition to our ongoing audits and investigations into other previous conferences."
"We’ve known that there is a culture of waste, fraud and abuse within the many layers of GSA, and this proves that this is a systemic problem that is rooted deeply within this organization," said Denham, though it also raised an additional question - is it rooted in other agencies as well?
My story last week about $670,000 being spent on one conference by a small unit of the Commerce Department is still percolating on Capitol Hill, along with other inquiries from lawmakers about Brand USA and travel next month by the Ninth Circuit Court of Appeals.
"This out of control agency is not above the law," said Mica.
He might be talking about more than just the GSA.
As for the GSA, here is a statement released on Thursday to reporters:
Statement from GSA Communications Director, Betsaida Alcantara, on the 2010 Crystal City FAS Awards Ceremony:
This event took place in 2010 and has been in existence going back to 2002.
Today, under the new GSA leadership, this event and type of spending is not tolerated. As of April 2012 all spending for events, including training conferences, leadership events, team building exercises, award ceremonies, were suspended.
These events indicate an already recognized pattern of misjudgment which spans several years and administrations. It must stop, and is why Acting Administrator Tangherlini has instituted several stringent new policies on spending to put an end to this misuse of taxpayer dollars.
This week, Tangherlini cut executive bonuses and instituted a hiring freeze across the agency. Additionally, Tangherlini has consolidated oversight of conference and travel expenses in the new Office of Administrative Services. He cancelled 36 conferences, saving millions in taxpayer dollars, and directed the new office to review each and every planned future conference to make sure that they and any related travel is justified.
The new leadership at the GSA is leaving no stone unturned in investigating any misuse of taxpayer dollars. When we find serious issues we refer them to the Office of Inspector General, as we did in this case. We look forward to the recommendations and findings of the OIG's investigation.
We continue with our rigorous top-to-bottom review of all agency operations and further reforms are forthcoming.
