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Feb. 9, 2017

Evaluation of Defense Contract Management Agency Contracting Officer Actions on DefenseContract Audit Agency Incurred Cost Audit Reports

We evaluated the appropriateness of Defense Contract Management Agency (DCMA) actions on Defense Contract Audit Agency (DCAA) findings reported in 22 incurred cost audit reports.

Feb. 7, 2017

The Air Force Did Not Adequately Determine or Document Fair and Reasonable Prices for Lot 7 Sole-Source Initial Spare Partsfor the C-5 Aircraft (Redacted)

We determined whether the Air Force Life Cycle Management Center (AFLCMC) purchased sole-source C-5 Reliability Enhancement and Re-Engining Program spare parts from Lockheed Martin Aeronautics Company (LM Aero) at fair and reasonable prices.

Feb. 1, 2017

Defense Organization Officials Did Not Consistently Comply With Requirements for Assessing Contractor Performance

We determined whether officials from Defense organizations completed comprehensive and timely contractor performance assessment reports (PARs) for nonsystems contracts as required by Federal and DoD policies. Nonsystems contracts include contracts for operations support, services, and information technology.

Jan. 31, 2017

Defense Logistics Agency Aviation Negotiated Fair and Reasonable Prices for F402 Engine Spare Parts, but Pricing Errors and Late Deliveries Occurred (Redacted)

We determined whether the Defense Logistics Agency (DLA) was purchasing sole-source spare parts at fair and reasonable prices for F402 engines in support of the AV-8B Harrier II aircraft.  The Marine Corps uses the Harrier to perform missions, including close air support of ground troops and armed reconnaissance.  We nonstatistically selected 17 of 408 spare parts for review, valued at $55.3 million of $85.1 million, to determine whether F402 engine spare parts prices were fair and reasonable.

Jan. 30, 2017

Evaluation of the Defense Cover Program's Oversight Process (Classified)

The report is Classified. To file a Freedom of Information Act request, please submit a request to FOIA Online.

Jan. 27, 2017

Medical Service Accounts at U.S. Army Medical Command Need Additional Management Oversight

Our objective was to determine whether U.S. Army Medical Command (MEDCOM) Uniform Business Office (UBO) effectively managed delinquent medical service accounts. This report is the sixth in a series on the management of medical service accounts. We nonstatistically selected and reviewed 20 high-dollar medical service accounts, valued at $2.7 million, transferred to MEDCOM by Brooke Army Medical Center UBO.

Jan. 26, 2017

Naval Facilities Engineering Command Management of Energy Savings Performance Contracts Needs Improvement

We determined whether the Department of the Navy was effectively managing energy savings performance contracts (ESPCs). This report is the third in a series on DoD ESPCs. ESPCs provide a way for the private sector to finance Federal Government energy's savings projects. Naval Facilities Engineering Command (NAVFAC) Expeditionary Warfare Center, Port Hueneme, California, manages the Navy ESPC program. We reviewed all 38 ongoing performance-‘phase ESPCs to determine whether NAVFAC officials appointed contracting officer’s representatives and developed quality assurance surveillance plans. In addition, we nonstatistically selected five ongoing performance-phase ESPC projects for a more detailed review to determine whether NAVFAC officials verified that the energy savings reported in the contractor’s post-‘installation1 and measurement and verification reports2 are accurate, and that Government payments to the contractor do not exceed the verified savings.

Jan. 23, 2017

Management of Excess Material in the Navy's Real-Time Reutilization Asset Management Facilities Needs Improvement

Our audit objective was to determine whether the Navy was effectively managing excess material.  Specifically, we determined whether the Navy was identifying and reporting excess material to the wholesale level to ensure the effective use or reuse of that material and to minimize the Navy’s cost to store and maintain excess inventory.

For this audit, we focused on the retention of excess consumable material in the Navy Real-Time Reutilization Asset Management (RRAM) facilities.  Examples of such material include aircraft damper seals, spring tension washers, and electrical cable assemblies.  These RRAM facilities provide a collection, storage, inventory, and redistribution point for excess material.  We reviewed whether consumable material held in RRAM facilities for more than 4 ½ years was justified for retention to minimize the Navy’s cost to store and maintain excess material and was reused to offset or defer procurements.