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News | June 27, 2024

Press Release: Audit of Remote Maintenance and Distribution Cell–Ukraine Restructuring Contract Surveillance Planning and Contractor Oversight

Audit

Inspector General Robert P. Storch announced today that the Department of Defense Office of Inspector General (DoD OIG) released the “Audit of Remote Maintenance and Distribution Cell–Ukraine Restructuring Contract Surveillance Planning and Contractor Oversight.”  

The DoD OIG’s audit found that Army contracting personnel planned and established controls to conduct surveillance of contractor performance at the Remote Maintenance and Distribution Cell–Ukraine in accordance with Federal and DoD policies. Army contracting personnel also adjusted surveillance procedures and increased oversight personnel on-site to adapt to changing mission requirements  and ensure continued surveillance of the contractor’s maintenance efforts. Furthermore, Army contracting personnel performed adequate contract oversight to ensure satisfactory contractor performance. The DoD OIG did not make any recommendations.

“Army contracting personnel demonstrated agility in responding to Ukraine’s expanding maintenance needs,” said IG Storch. “Such oversight by the Army is critical to ensuring that the contractor provides appropriate maintenance, repair, and sustainment support to assist in Ukraine’s defense.”

This report is the second of three products from the DoD OIG’s review of Army contracting personnel and Federal and DoD policies to:

  1. properly award a contract for maintenance of equipment at the Remote Maintenance and Distribution Cell–Ukraine,
  2. appropriately plan for and establish controls for conducting surveillance of contractor performance, and
  3. effectively monitor contractor performance.

This report addresses Army surveillance controls and the efforts of Army contracting personnel to monitor contractor performance.

On January 5, 2024, the DoD OIG issued Report No. DODIG-2024-041, “Management Advisory: Audit of Remote Maintenance and Distribution Cell–Ukraine Restructuring Contract Award,” which reported that Army contracting personnel adequately planned the task order and properly supported the award decision. 

The DoD OIG plans to issue a third product this summer that addresses contract invoice reviews.