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San Antonio MICC and POM Personnel Properly Awarded and Administered the POM UESC, but Improved Procedures and Guidance Are Needed

DODIG-2016-077

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Objective

We determined whether the contracts and tasks orders related to the Army Utility Energy Services Contracts (UESCs) were properly awarded and administered. Specifically, we reviewed the contract and task orders related to the UESC awarded for the U.S. Army Garrison Presidio of Monterey (POM), Monterey, California, with a maximum expected value of $10 million. This is the second in a series of audits on Army UESCs.

Finding

Contracting personnel at the San Antonio Mission and Installation Contracting Command and POM program personnel properly awarded and administered the POM UESC. However, personnel at the Army Office of the Assistant Chief of Staff for Installation Management, U.S. Army Installation Management Command, San Antonio Mission and Installation Contracting Command, and POM did not have standard operating procedures or sufficient guidance in place over the UESC program. This occurred because this contract was the first UESC for San Antonio Mission and Installation Contracting Command and POM personnel; therefore, they had not yet created UESC‑specific standard processes. In addition, the Office of the Assistant Chief of Staff for Installation Management personnel stated they were waiting to issue guidance until after a Defense Federal Acquisition Regulation Supplement case is resolved. Although current personnel have awarded and administered the UESC appropriately, without documenting adequate and appropriate procedures and guidance, Army officials may not be able to effectively award UESC contracts and administer the UESC program in the future.

Recommendations

We recommend the Assistant Chief of Staff for Installation Management establish guidance with specific thresholds for reviewing and approving projects and guidance for awarding and administering U ESCs. We recommend the Commander, 412th Contracting Support Brigade, and the Director, Presidio of Monterey Directorate of Public Works, establish standard operating procedures for awarding and administering UESCs.

Management Comments and Our Response

The Acting Deputy to the Commanding General, Mission and Installation Contracting Command, responding for the Commander, 412th Contracting Support Brigade; the Garrison Commander, responding for the Director, Presidio of Monterey Directorate of Public Works; and the Director, Operations, Office of the Assistant Chief of Staff for Installation Management, addressed the specifics of the recommendations.