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U.S. Africa Command’s Management of Acquisition and Cross-Servicing Agreements

DODIG-2017-121

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Sept. 21, 2017 — Objective

We determined whether U.S. Africa Command (USAFRICOM) effectively managed Acquisition and Cross-Servicing Agreement (ACSA) transactions for logistics support, supplies, and services.

Background

ACSAs are bilateral agreements between the United States and authorized foreign entities for the exchange of logistics support, supplies, and services. ACSAs allow logistical exchanges between the United States and the military forces of eligible countries and international organizations. The ACSA program gives the commander increased flexibility in addressing logistical requirements. Implementing arrangements are supplementary agreements that prescribe details, terms, and conditions to effectively implement cross-servicing agreements. While these arrangements normally are more detailed than the ACSAs, they must be completely consistent with the ACSAs they support. An implementing arrangement is a type of international agreement under DoD Directive 5530.3, “International Agreements,” June 11, 1987.

Federal law grants the Secretary of Defense the authority to use ACSAs. Within the Office of the Secretary of Defense, the Office of the Under Secretary of Defense for Acquisition, Technology, and Logistics (OUSD[AT&L]) is the focal point for the ACSA program. DoD Directive 2010.9, “Acquisition and Cross-Servicing Agreements,” November 24, 2003, establishes ACSA policy and assigns responsibilities for the OUSD(AT&L), the Chairman of the Joint Chiefs of Staff (CJCS), the Military Departments, Defense agencies and combatant commands and for the implementation of the ACSA program.

As part of the responsibility assigned in DoD Directive 2010.9, the CJCS provides guidance for implementing the ACSA and assigns roles and responsibilities for the Joint Staff, combatant commands, direct reporting units, and Defense agencies reporting to the Secretary of Defense through CJCS Instruction 2120.01D, “Acquisition and Cross-Servicing Agreements,” May 21, 2015. CJCS Instruction 2120.01D directs the use of ACSAs in accordance with Federal law.1 It also requires the use of the ACSA Global Automated Tracking and Reporting System (AGATRS) to fully document all transfers of logistics support, supplies, and services between U.S. and foreign entities under ACSA authorities and states that the program should be executed by designated ACSA officials at the lowest organizational level.

Finding

USAFRICOM did not effectively manage the ACSA orders it executed and was not required to oversee ACSA orders executed by its Subordinate Components in the USAFRICOM area of responsibility. Specifically, USAFRICOM and its Subordinate Components did not include all minimum essential data elements on ACSA orders and upload source documents supporting line items on ACSA orders into AGATRS. In addition, some Subordinate Components were not maintaining ACSA orders in AGATRS or tracking ACSA orders under ACSA authorities. Specifically:

  • U.S. Marine Corps Forces Africa did not maintain all transactions in AGATRS,
  • U.S. Naval Forces Africa did not know that ACSA orders were used for medical activities, and
  • U.S. Air Forces Africa did not document that meals were provided under ACSA authorities.

Furthermore, U.S. Special Operations Command Africa entered into four agreements that met the intent of an implementing arrangement without understanding the requirements for completing and coordinating an implementing arrangement.

These conditions occurred, in part, because the OUSD(AT&L) did not monitor compliance with DoD Directive 2010.9 as required or establish training requirements for personnel who execute ACSA orders. In addition, the CJCS provided implementation guidance that does not apply to Military Departments and some Defense agencies and does not establish clear training requirements. Furthermore, neither the Secretary of the Navy nor the Commander, U.S. Special Operations Command (USSOCOM), issued ACSA policy or program guidance, and USAFRICOM did not update its ACSA instruction.

As a result, the CJCS, Secretaries of Military Departments, and Commander, USAFRICOM, did not have assurance that logistics support, supplies, and services transactions executed in the USAFRICOM area of responsibility were accurate or reimbursed. For example, we reviewed ACSA orders from January 2014 through December 2016 and identified that the DoD did not have assurance that 196 orders, valued at $32.1 million, for logistics support, supplies, and services were accurate or reimbursed. Furthermore, USAFRICOM’s Subordinate Components may not be capturing the transfer of items or services as logistics support, supplies, and services in support of an ACSA, resulting in inaccurate program records for DoD Components or the Military Services not being reimbursed for logistics support, supplies, and services. Finally, poor implementation of the ACSA program will reduce flexibility for commanders to address logistical shortfalls.

Recommendations and Management Actions Taken

We recommend that the Under Secretary of Defense for Acquisition, Technology, and Logistics:

  • Review the current implementation and execution of the ACSA program and update DoD Directive 2010.9 to define oversight responsibilities for Office of the Secretary of Defense, Military Departments, Defense agencies, Joint Staff and combatant commands; to require use of a DoD system of record to maintain ACSA orders; to define ACSA order and billing officials roles; and to clarify requirements for implementing arrangements.
  • Develop and issue program guidance as required by DoD Directive 2010.9 for the Military Services and Defense agencies.
  • Develop a training program or training program requirements for the implementation of the ACSA program and execution of ACSA authorities.

In response to the discussion draft, the OUSD(AT&L) issued DoD Memorandum, “Delegation of Responsibilities under Departments of Defense Directive 2010.9, ‘Acquisition and Cross-Servicing Agreements,’” July 19, 2017. The policy memorandum delegates to the Joint Staff the responsibility for allocation of ACSA ceilings to Defense agencies and issuance of program management guidance to Defense agencies and Military Departments. The OUSD(AT&L)’s actions taken partially addressed our recommendation; therefore, we consider this part of the recommendation closed.

We recommend that the Assistant Secretary of the Navy (Research, Development, and Acquisition) designate a Chief of Naval Operations and Headquarters Marine Corps Office of Prime Responsibility to oversee the execution of the ACSA program for their respective Service Components.

We recommend that the Commander, USSOCOM, issue interim guidance for the implementation and execution of the ACSA program.

During the audit, on April 28, 2017, USSOCOM issued a policy memorandum to provide guidance for the use of ACSA authorities and the execution of ACSA orders. The policy memorandum provides roles and responsibilities and specific requirements for both logistics ACSA program managers and financial ACSA program managers. USSOCOM’s actions taken addressed our recommendation; therefore, this recommendation is closed.

We recommend that the Commander, USAFRICOM, issue a formal ACSA instruction that includes requirements to complete the 25 minimum essential data elements and upload required supporting documentation in AGATRS.

During the audit on June 20, 2017, USAFRICOM’s ACSA instruction, with requirements for minimum essential data elements and support documentation, was approved and signed. USAFRICOM’s actions taken addressed our recommendation; therefore, this recommendation is closed.

We recommend that the Commander, U.S. Air Forces Africa, develop and implement a plan to properly track and maintain all orders for logistics support, supplies, and services, whether paid in cash or electronically, provided to foreign military personnel using ACSA authorities in AGATRS.

We recommend that the Commander, U.S. Naval Forces Africa, review U.S. Navy logistics support, supplies, and services provided to foreign military services in the USAFRICOM area of responsibility to determine whether the support and services are supplied under ACSA authority and for the support and services provided under ACSA, track and maintain ACSA orders in accordance with the updated DoD policy.

We recommend that the CJCS issue program management guidance to Defense agencies and Military Departments as required by DoD Memorandum, “Delegation of Responsibilities under Departments of Defense Directive 2010.9, ‘Acquisition and Cross-Servicing Agreements,’” July 19, 2017.

Management Comments and Our Response

The Director of International Cooperation, OUSD(AT&L), responding for the Under Secretary of Defense for Acquisition, Technology, and Logistics, agreed with the recommendations to update the DoD Directive 2010.9 to define oversight responsibilities, require use of DoD system of record, and develop training program requirements. Therefore, these recommendations are resolved but will remain open. We will close these recommendations once we verify that the updated DoD Directive 2010.9 fully addresses the recommendations and that training program requirements were developed for the implementation and execution of the ACSA. We expect receipt of the training requirements no later than December 2018.

The Director partially agreed with the recommendation to define ACSA order and billing officials’ roles and responsibilities and clarify what is acceptable for establishing parameters under ACSA authorities.

The Director stated that the management detail for ACSA staff roles and responsibilities is addressed in CJCS Instruction 2120.01D and is now applicable to all DoD Components that use ACSA. The Director stated that the OUSD(AT&L) will consult with the Joint Staff to determine whether any changes in CJCS Instruction 2120.01D are necessary. The action taken that delegates to the Joint Staff the responsibility for issuing program management guidance satisfies the intent of this recommendation. Therefore, this recommendation is resolved but will remain open. We will close this recommendation once we verify that the OUSD(AT&L) and Joint Staff have determined whether changes in CJCS Instruction 2120.01D are necessary.

The Director stated that the OUSD(AT&L) has determined that CJCS Instruction 2120.01D provides sufficient guidance concerning implementing arrangements. However, CJCS Instruction 2120.01D does not provide any guidance on a memorandum of understanding or any other arrangements that are acceptable for placing terms and conditions on the acquisition or transfer of logistics support, supplies, and services. Therefore, the recommendation to clarify what is acceptable for establishing parameters under ACSA authorities is unresolved and will remain open. We request that the Director provide guidance to DoD ACSA users for supplemental agreements to implementing arrangements under ACSA authority or update DoD Directive 2010.9 to clarify requirements on what is acceptable for establishing parameters under ACSA authorities.

The Assistant Secretary of the Navy (Research, Development, and Acquisition) did not respond to the finding and the recommendation to designate a Chief of Naval Operations and Headquarters Marine Corps Office of Prime Responsibility to oversee the execution of the ACSA program for their respective Service Components. Therefore, the recommendation is unresolved and will remain open. We request that the Assistant Secretary provide comments on the final report.

The Chief, Logistics Readiness Division, U.S. Air Forces Africa, responding for the Commander, U.S. Air Forces Africa, disagreed with the finding and the recommendation to develop and implement a plan to properly track and maintain all orders for logistics support, supplies, and service, whether paid in cash or electronically, provided to foreign military personnel using AGATRS. The Chief stated that U.S. Air Forces Africa has a procedure in place to ensure the accurate tracking of logistics support, supplies, and services. Although a process was provided, it did not mention foreign national headcount totals and the associated cash collected on-site being placed on an ACSA order and the ACSA order being uploaded into AGATRS. Therefore, the recommendation is unresolved and will remain open. We request that the Chief provide documentation of the process, including the use of AGATRS and ACSA program manager role, the action or plan of dissemination to U.S. Air Forces Africa ACSA users, and the expected date of completion.

The Chief of Staff, U.S. Naval Forces Africa, responding for the Commander, U.S. Naval Forces Africa, agreed with the finding and the recommendations to review U.S. Navy logistics support, supplies, and services provided to foreign military services to determine whether support and services are supplied under ACSA authority and to track and maintain the logistics support, supplies, and services provided under ACSA authority in accordance with DoD policy. Therefore, this recommendation is resolved but will remain open. We will close the recommendations once we verify the results of the review, and the training plan or documented training policy.

The CJCS did not provide official comments; however, the Joint Staff took action to address the recommendation to issue program management guidance to Defense agencies and Military Departments.

The Deputy Director for Strategic Logistics, Joint Staff J4, issued a memorandum reiterating that the OUSD(AT&L) delegated to the Joint Staff the responsibility to issue ACSA program management guidance. The Joint Staff J4 also notified the Military Departments that CJCS Instruction 2120.01D is applicable to the Military Departments and is the program management guidance the Departments should follow. The CJCS’s actions taken addressed our recommendation; therefore, this recommendation is closed.

 


 

1 Sections 2341-2350, title 10, United States Code.