The General Services Administration’s (GSA) decision to purchase 150 Chinese-made video conferencing cameras that did not comply with U.S. trade standards was based on “egregiously flawed” market research, according to a report released by the agency’s oversight office on Tuesday. The unnamed U.S.-based firm, designated as “Company A” in the report, provided the equipment that violates the 1979 Trade Agreements Act and poses security threats that need to be addressed.
The GSA’s Office of Inspector General was informed in 2022 by an unnamed employee about the purchase and use of the non-compliant cameras. The procurement was approved by GSA CIO David Shive and made through the Federal Acquisition Service’s Federal Systems Integration and Management Center (FEDSIM) in two separate orders – 70 purchased in March and an additional 80 in October 2022.
However, an IT security company alerted the GSA in June about five vulnerabilities in the equipment, and further added that it could be turned into “rogue wireless network gateways” that could be used to secretly access the camera owners’ networks, as per the oversight report. Such devices can pose severe threats to national security, sensitive information, and federal infrastructure.
The Inspector General’s report revealed that GSA’s market research failed to obtain adequate information to assess the products’ quality, quantity, or cost, contributing to its decision to purchase defective equipment. Additionally, the market research allegedly did not consider non-Chinese alternatives, despite the existence of numerous U.S. produced video conferencing cameras.
The Inspector General’s report further states that GSA risked national security, compromised its cybersecurity, and violated U.S. procurement laws. Critics argue that the agency’s procurement process calls for major review and suggests a lack of oversight regarding procurement policies.
The report concludes by providing various recommendations to GSA, including investing in robust market research, drafting effective procurement policies, conducting auditable third-party assessments of purchases, and increasing the awareness of procurement rules among its employees.
The case of the GSA impresses upon the importance of procurement policies and investing in robust market research. It demonstrates the need to exercise due diligence while sourcing technology, especially when national security and sensitive information are at risk. Therefore, procurement agencies ought to be cautious and selective when dealing with vendors while deploying state-of-the-art technology.
