What We Did:
The purpose of this advisory is to discuss the DoD’s use of the Coronavirus Aid, Relief, and Economic Security (CARES) Act funds, and highlight areas of concern over the DoD’s reporting on USASpending.gov on the use of the DoD’s CARES Act funds. We previously provided copies of the draft management advisory and requested written comments on the recommendations. We considered management’s comments on the draft advisory when preparing the final memorandum.
What We Found:
In prioritizing CARES Act spending, the DoD created a spend plan with two main priorities: 1)protecting its people, and 2) safeguarding national security capabilities. To protect thepeople against COVID-19, the DoD increased its medical care and increased its procurementof medical equipment. The DoD bought personal protective equipment, vaccines, antivirals,and other pharmaceutical supplies. To safeguard national security capabilities, the DoDupgraded its information technology to increase bandwidth to continue operations andincrease access to material necessary for national security and pandemic recovery. The DoDfunded contract modifications involving price increases and cost overruns tied directly to the COVID-19 response. To address the DoD’s priorities, the DoD awarded contracts and grants to companies. The DoD OIG reviewed whether the DoD appropriately awarded CARES Act funding. For example, in FY 2021 the DoD OIG found that the DoD appropriately awarded more than $200 million of the $1 billion Defense Production Act CARES Act funding to sustain or increase the Defense Industrial Base.
What We Recommend:
The Acting Deputy Chief Financial Officer, responding for the Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD (USD[C]/CFO), agreed to address all of the recommendations presented in the memorandum; therefore, the recommendations are considered resolved and open. As described in the Recommendations, Management Comments, and Our Response section of this memorandum, the recommendations may be closed when we receive adequate documentation showing that all agreed upon actions to implement the recommendations have been completed.