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Department of Defense Inspector General
From the DoD IG ... October 2011
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Signature of Gordon S. Heddell

WHAT’S NEW

DoD IG Establishes Violent Crimes Division.  The Department of Defense Office of Inspector General has established a new division that will evaluate DoD and military service criminal investigative policies, programs, and training focused on violent crimes including murder, suicide, sexual assaults, robbery, child abuse, and aggravated assault.

The Violent Crimes Division was authorized by Inspector General Gordon S. Heddell in July 2011 and is located within the Office of Deputy Inspector General for Policy and Oversight, under the Assistant Inspector General for Investigative Policy and Oversight.  The new division is now being staffed with criminal investigators and investigative review specialists, whose first assignment will be to focus on DoD’s criminal investigative response to sexual assaults.

DoD IG Is Now on Twitter!  The DoD Office of Inspector General is now on Twitter. To find links to recent reports, press releases, congressional testimony, and speeches go to: Twitter.com\DoDInspGeneral.  To stay informed about the DoD IG, sign up for a Twitter account and follow us.


UPCOMING REPORTS

Significant reports expected to be released within the next 30 days include:

  • Assessment of DoD Wounded Warrior Matters – Ft. Drum.  This assessment, the second in a series of assessments evaluating the policies and processes in place to assist wounded warriors in their return to duty status or transition to civilian life, reviewed the Warrior Transition Unit at Ft. Drum, New York.
  • FY 2009 Air Force General Funds Statement of Budgetary Resources Adjusting Journal Vouchers.  The report assesses the propriety of the Defense Finance and Accounting Service  journal voucher adjustments associated with the FY 2009 Air Force General Funds Statement of Budgetary Resources.
  • Military Academy Gifts and Non-Appropriated Funds.  The audit determined whether the U.S. Naval Academy non-appropriated fund instrumentality and its supporting nonprofit organizations are properly accepting, recording, reporting, and disbursing donations, gifts, and non-appropriated funds.
  • Assessment of Security Within the Department of Defense – Training, Certification, and Professionalization.  This report is the second in a series of assessments on security within DoD and is designed to provide an overall assessment of security policies and procedures within the Department.  The report will address actions the Department is taking to establish a certification and training program to professionalize its security workforce.


RECENTLY RELEASED REPORTS OF INTEREST

Pricing and Escalation Issues Weaken the Effectiveness of the Army Contract With Sikorsky to Support the Corpus Christi Army Depot (Report D-2011-104). 

Image of RotorWe evaluated the Army Aviation and Missile Life Cycle Management Command (AMCOM) material purchases from Sikorsky Aircraft Corporation (Sikorsky) supporting the Corpus Christi Army Depot to determine whether the partnership agreement effectively minimized the cost of direct materials to the depot.

This report addresses spare parts pricing problems.  A subsequent report will address other contract concerns.  We calculated that Sikorsky charged the Army $11.8 million or 51.4 percent more ($34.7 million versus $22.9 million) than fair and reasonable prices for 28 parts.

If prices are not corrected, AMCOM officials will pay excessive profits of approximately $16.6 million over the remaining 2 years of the contract.  In addition, AMCOM will pay excessive escalation costs of $21.0 million because the contract escalation was not tied to an economic index.  This report is “For Official Use Only.”  To see a copy of the unrestricted “Results in Brief,” click here.

Exposure to Sodium Dichromate at Qarmat Ali, Iraq in 2003:  Part II – Evaluation of Army and Contractor Actions Related to Hazardous Industrial Exposure (Report No. SPO-2011-009).  This evaluation was initiated in response to requests from the Senate Armed Services and Democratic Policy Committees, and reviewed DoD actions regarding the exposure of approximately 1,000 U.S. Army soldiers and U.S. Army civilians to sodium dichromate, a carcinogen, at the Qarmat Ali, Iraq, water treatment plant in 2003. To see the report, click here.

The Department of the Navy Spent Recovery Act Funds on Photovoltaic Projects That Were Not Cost-Effective (Report No. D-2011-106).  We performed this audit in response to the requirements of Public Law 111-5, “American Recovery and Reinvestment Act of 2009” (Recovery Act), February 17, 2009.  We determined that the Department of the Navy did not select and plan photovoltaic projects in accordance with the Recovery Act, and applicable energy legislation and policies.  As a result, the Navy will not recover $25.1 million of the $50.8 million invested in photovoltaic projects. To see the report, click here.

Competition for Interrogation Arm Contracts Needs Improvement (Report No. D-2011-105).  Army contracting and program officials inappropriately restricted competition in their award of four sole-source contracts valued at $82.1 millionInterrogation Arm Mounted on a to one source.  These officials also inappropriately managed the Interrogation Arm (IA) as a commercial item when the IA was developed uniquely for military purposes.

We reviewed the Army contracts to procure the IA used on route clearance vehicles in Iraq and Afghanistan to determine whether the IA acquisition initiative was contracted and managed in accordance with federal and Defense acquisition regulations. 

This report is the second in a series of reports addressing DoD contracts for countermine and improvised explosive device defeat systems used in Iraq and Afghanistan. To see the report, click here.


DEFENSE CRIMINAL INVESTIGATIVE SERVICE HIGHLIGHTS

DCIS BadgeFormer Army Corps of Engineers Employee Pleads Guilty to Accepting Bribes From Iraqi Contractors.  A former employee of the U.S. Army Corps of Engineers stationed in Baghdad, Iraq, pleaded guilty on September 19, 2011, to conspiring to receive bribes from Iraqi contractors involved in U.S.-funded reconstruction efforts.

Thomas Aram Manok, 50, of Chantilly, Va., pleaded guilty before U.S. District Judge Anthony J. Trenga in the Eastern District of Virginia.  Sentencing has been scheduled for December 9, 2011.  According to court documents, Manok admitted to using his official position to conspire with Iraqi contractors to accept cash bribes in exchange for recommending that the Army Corps of Engineers approve contracts and other requests for payment submitted by the contractors to the U.S. government.

This case was investigated by the Federal Bureau of Investigation Washington Field Office, the Defense Criminal Investigative Service, and the Army Criminal Investigation Command as participants in the International Contract Corruption Task Force.  For more information, click here.

North Carolina Man Pleads Guilty To Terrorism Charge.  Dylan Boyd, aka “Mohammed,” pleaded guilty on September 14, 2011, in federal court in New Bern, N.C., to one count of aiding and abetting a conspiracy to provide material support to terrorists.  Boyd, 24, a U.S. citizen and resident of North Carolina, was charged along with seven other defendants in a federal indictment.

The indictment alleges that, as part of the conspiracy, Boyd assisted other defendants as they prepared themselves to engage in violent jihadand were willing to die as martyrs. They also allegedly offered training in weapons and financing, and helped arrange overseas travel and contacts so others could wage violent jihadoverseas.

Earlier, Boyd's father and co-defendant, Daniel Patrick Boyd, pleaded guilty to one count of conspiracy to provide material support to terrorists and one count of conspiracy to murder, kidnap, maim and injure persons in a foreign country.  Boyd's brother and co-defendant, Zakariya Boyd, pleaded guilty to one count of conspiracy to provide material support to terrorists.

The investigation was conducted by the FBI Raleigh-Durham Joint Terrorism Task Force, which includes the FBI, DCIS, the North Carolina Alcohol Law Enforcement, the Raleigh Police Department, the Durham Police Department and the North Carolina Information Sharing and Analysis Center.  For more information, click here.


RECENTLY ANNOUNCED PROJECTS

Audit of the U.S. Air Force Academy Gifts and Non-appropriated Funds.  Our objective is to determine whether the U.S. Air Force Academy, its non-appropriated fund instrumentalities, and its supporting nonprofit organizations are properly accepting, recording, reporting, and disbursing donations, gifts, and non-appropriated funds. 
Audit of Combatant Command Disaster Relief Operations.  Our objective is to evaluate the ability of the combatant commands to plan and execute disaster relief operations to prevent instability in their areas of responsibility.  We will also assess the support provided by DoD organizations to enable the combatant commands to effectively conduct disaster relief operations.
Audit of Pricing and Oversight of the Kuwait Observer Controller Team Task Orders.  This audit will be the third in a series of audits relating to the Warfighter Field Operations Customer Support contract.  Our audit objectives are to determine whether the U.S. Army Program Executive Office for Simulation, Training, and Instrumentation obtained fair and reasonable prices for goods and services on the Kuwait Observer Controller Team task orders, and appropriately developed contractor surveillance and oversight processes and procedures for the task orders.

Audit of U.S. Army Corps of Engineers, Civil Works, New Orleans District Controls Over Contract Awards and Oversight Processes.  Our objective is to determine whether U.S. Army Corps of Engineers, Civil Works, New Orleans District, has established adequate internal controls over its contract oversight processes.  Specifically, we will review the policies and procedures used to solicit, award, and administer contracts.

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