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Army Oversight of Logistics Civil Augmentation Program Government-Furnished Property in Afghanistan

DODIG-2018-040

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Background

LOGCAP is an Army program using contractors to provide logistical and sustainment services to deployed forces since 1992. The Army has issued four LOGCAP contracts to provide sustainment support to U.S. operations around the world, including Afghanistan. Services provided in the LOGCAP contract include dining and laundry facilities, housing, construction, transportation, and facilities maintenance. The Army Sustainment Command awarded LOGCAP IV in 2007.

In 2009, the Army Contracting Command–Rock Island awarded task orders for LOGCAP services in Afghanistan to DynCorp International for the Southern Afghanistan Area of Responsibility, which includes Kandahar Airfield, and to Fluor Intercontinental for the Northern Afghanistan Area of Responsibility, which includes Bagram Airfield. As part of the transition to LOGCAP IV, the LOGCAP III contractor transferred possession and accountability of GFP to DynCorp and Fluor.

Federal Acquisition Regulation Part 45 defines GFP as property in the possession of, or directly acquired by, the Government and subsequently furnished to the contractor for the performance of a contract.
Examples of GFP furnished to LOGCAP contractors includes heating and air conditioning units; construction vehicles, such as forklifts; and power generators.

The Army Sustainment Command and Army Contracting Command execute GFP and contractor oversight responsibilities through their subordinate commands, the 401st Army Field Support Brigade and the Expeditionary Contracting Command–Afghanistan. The 401st Army Field Support Brigade provides a property book officer responsible for maintaining the Army’s official accountable records for GFP. The Expeditionary Contracting Command–Afghanistan, as the contract administrator, oversees the LOGCAP contractors using administrative contracting officers and property administrators.

Finding

The Army did not perform effective oversight of LOGCAP GFP in Afghanistan. Specifically, the Army Sustainment Command did not include at least 26,993 items provided to the LOGCAP IV contractors in the Army’s accountable records.

The Army’s accountable records were incomplete because the Army Contracting Command–Rock Island did not properly modify the LOGCAP IV contract for GFP transfers and did not coordinate GFP transfers with the property book officer. In addition, Army guidance did not include sufficient controls for identifying and resolving GFP accountability deficiencies.

As a result of the Army’s poor accountability of LOGCAP GFP in Afghanistan, at least $99.9 million in property was at increased risk of being lost, stolen, or unaccounted for without Army detection. LOGCAP contractors have self-reported more than $9.7 million in GFP losses since 2012. However, without maintaining an accurate list of all GFP, Army officials cannot be certain that all contractor GFP losses have been identified, investigated, and reported. In addition, the contractors’ records contained 4,019 controlled inventory items, valued at $1.5 million, that were not included in the Army’s accountable records. If enemy forces obtain certain controlled inventory items, such as personal protective equipment, they could be used against U.S. and Coalition forces. Finally, the lack of accountability of LOGCAP GFP limited the Army’s ability to plan and execute base sustainment in Afghanistan. Specifically, the Army had to rely on the contractors’ records for procurement-related decision making.

Recommendations

We recommend that the Commanding General, Army Contracting Command, coordinate with the Commander, Expeditionary Contracting Command–Afghanistan, to:

• review and validate the contractors’ Government-furnished property listings, modify LOGCAP task orders 0004 and 0005 to ensure all GFP currently possessed by the LOGCAP contractors is included on the contract, and provide the property book officer with the updated contract modification;
• develop a GFP training manual and train personnel on the Army guidance and processes for LOGCAP accountability; and
• ensure corrective actions implemented on LOGCAP IV are effectively included in the establishment and execution of the LOGCAP V contract.

We recommend that the Commanding General, Army Sustainment Command, task the Commander, 401st Army Field Support Brigade, to:

• use the contract modification referenced in the first recommendation to update the Army’s official GFP accountable records; and
• update the Theater Provided Equipment standard operating procedures to require the theater property book officer coordinate with Expeditionary Contracting Command–Afghanistan to reconcile, at least twice per year, the Army GFP accountable record with the contractors’ records and address any discrepancies.

Management Comments and Our Response

The Deputy to the Commanding General, Army Contracting Command, responding for the Commanding General, Army Contracting Command, agreed with the recommendation to review and validate the contract Government-furnished property listings, modify the task orders accordingly, and provide modifications to the property book officer. In addition, the Deputy agreed to review established procedures and training to ensure that accountability is correctly addressed. Furthermore, the Deputy agreed to ensure corrective actions implemented on LOGCAP IV are effectively included in the establishment and execution of the LOGCAP V contract. Therefore, the recommendations are resolved and will be closed when we verify the planned actions are fully implemented.

The Executive Director, Acquisition Integration and Management Center, responding for the Commanding General, Army Sustainment Command, agreed to use the modifications provided by Army Contracting Command to update the Accountable Property System of Record and the fiduciary record. In addition, the Executive Director agreed to update the Theater Provided Equipment standard operating procedures to reflect the intent to conduct semiannual reconciliation of the Government-furnished equipment with the Expeditionary Contracting Command–Afghanistan. Therefore, the recommendations are resolved and will be closed when we verify the planned actions are fully implemented.