Examination of Costs Claimed Under EPA Cooperative Agreement 2a-83440701 Awarded Under the Recovery ACT to Cascade Sierra Solutions, Eugene, Oregon

We recommend that the Director for the Office of Grants and Debarment disallow and recover $9 million in questioned costs; consider suspension and debarment of CSS on current and future awards; require CSS to ensure that the use of funds meets federal criteria; require special conditions for future awards to CSS; and provide clarifying guidance to CSS on progress reporting requirements. We also recommend that the Director require CSS to comply with pertinent procurement requirements; disallow pre-2007 model year trucks as project costs; and assist CSS with developing a methodology to calculate number of jobs created and direct CSS to correct the numbers reported, with documentation. The Agency generally agreed with the findings and said that it has initiated corrective actions to address some of the weaknesses identified in the report. CSS disagreed with most of the findings and two of the recommendations. CSS partially agreed with one recommendation and neither agreed nor disagreed with six recommendations. CSS described actions planned to document compliance with EPA procurement regulations and is willing to work with EPA on developing a Recovery Act job reporting methodology.