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U.S. TRANSCOM Needs Further Improvements to Address Performance Concerns Over the Global Privately Owned Vehicle Contract III




We conducted this audit in response to a Congressional request concerning the U.S. Transportation Command (USTRANSCOM) Global Privately Owned Vehicle Contract (GPC) III (HTC711-14-D-R025). Our objective was to determine whether USTRANSCOM contracting personnel incorporated adequate controls to properly monitor contractor performance and to address performance concerns on the GPC III.


Although USTRANSCOM and the contractor have made progress in addressing performance concerns, USTRANSCOM contracting staff and Surface Deployment and Distribution Command (SDDC) management personnel did not implement adequate controls to ensure proper contract oversight and address performance concerns. Specifically:

  • The contracting officer and contracting officer representatives (CORs) did not use the oversight procedures established in the quality assurance surveillance plan to monitor contractor performance. This occurred because the contracting officer did not take action to address the storage conditions at the Chester facility; the contracting officer instructed the CORs not to monitor late deliveries and not issue Contract Discrepancy Reports (CDRs) for the contract’s major performance objectives; and the contracting officer and SDDC Program Management did not provide CORs with access to the Transportation Financial Management System to re-verify the data submitted by the contractor. Without effective oversight, USTRANSCOM will not have sufficient information to assure transportation services received are consistent with contract quality requirements and performed in a timely manner.
  • The CORs certified invoices that did not include unit prices or total billable amount. This occurred because USTRANSCOM contracting staff and SDDC finance personnel approved an improper invoice process. As result, SDDC Finance personnel paid $162 million in potentially improper payments. Additionally, up to $5 million of the $162 million potential improper payments were overpayments related to 27,283 late delivery payments for which USTRANSCOM may hold the contractor accountable.

We commend USTRANSCOM for creating the Fusion Team to review the GPC III and identify areas for improvement and a Customer Response Team to address customer concerns. However, both teams were a temporary and unique means to address GPC III contractor performance concerns and were not intended as a substitute for the normal contract oversight process.


We made several recommendations to address the findings. Among others, we recommend the Director, USTRANSCOM Acquisition, provide oversight personnel with training and system tools to adequately monitor the contractor’s performance. See the recommendations sections in the report.

Management Comments and Our Response

The Deputy Commander, U.S. Transportation Command, responding for the Director, USTRANSCOM Acquisition, and the Commander, SDDC, addressed all specifics of the recommendations, and no further comments are required.