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Report | Dec. 3, 2015

U.S. Army Corps of Engineers, New York District Monitoring of a Hurricane Sandy Contract Needs Improvement

DODIG-2016-028

Objective

Our objective was to determine whether U.S. Army Corps of Engineers (USACE) effectively monitored contractor performance to respond to Hurricane Sandy. Specifically, we determined whether contracting officer’s representatives (CORs) from the USACE, New York District performed effective contractor oversight and surveillance.

USACE, New York District identified 13 ongoing Hurricane Sandy contracts related to construction, dredging, and restoration. We nonstatistically selected 3 of 13 contracts.

Finding

CORs from the USACE, New York District effectively monitored contractor performance for two of the three Hurricane Sandy contracts reviewed. Specifically, the CORs for contracts W912DS-13-C-0045 and W912DS‑14-C-0028 visited the project sites, prepared monthly reports based on daily reports from quality assurance and contractor personnel, attended and documented the preconstruction meetings with the contractors, and maintained required contract documentation.

However, the COR for contract W912DS‑13-C-0043 did not effectively monitor contractor performance. Specifically, the COR only made minimal visits to the project site even though it was not visited by quality assurance officials on a regular basis. In addition, the COR’s monthly reports were not timely or accurate. Further, the COR did not maintain required contract documentation in his COR file. This occurred because the COR relied almost solely on program officials to monitor quality controls and project progress and did not monitor or verify contractor performance. In addition, the procuring contracting officer did not review COR documentation or oversee the COR’s efforts to monitor contractor performance, as required by the Federal Acquisition Regulation. As a result, the procuring contracting officer and COR put the Government at risk by not effectively ensuring that the contractor complied with the terms and conditions of the contract.

Recommendation

We recommend that the Commander, USACE, New York District provide training for the COR for contract W912DS‑13-C-0043 on oversight responsibilities to effectively monitor contractor performance.

Management Comments and Our Response

The Commander, USACE, New York District, fully addressed all specifics of the recommendations, and no further comments are required.