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Allegations Unsubstantiated Concerning Defense Logistics Agency Violation of Federal Guidance for the Maintenance, Repair, and Operations Contracts

DODIG-2013-143

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What We Did

We performed this audit in response to a complaint that the Government Accountability Office forwarded to the Department of Defense Office of Inspector General on February 3, 2011. Our objective was to determine whether the Defense Logistics Agency (DLA) Troop Support violated Federal laws and regulations cited in the allegation forwarded to the Defense Hotline. Also, we evaluated whether DLA Troop Support allowed the contractor to perform inherently governmental functions for the six Maintenance, Repair, and Operations contracts, valued at $3.3 billion, cited in the allegation. Specifically, the complainant alleged DLA Troop Support violated:  

  • Competition in Contracting Act of 1984 (codified in relevant part at section 2304, title 10, United States Code [2011]);
  • Buy American Act (section 8301-8305, title 41, United States Code, “Buy American” [2011]);
  • Public Law 112-81, “National Defense Authorization Act for Fiscal Year 2012;”
  • Antideficiency Act (sections 1341, 1342, and 1517, title 31, United States Code, “Money and Finance” [2012]); and
  • Davis-Bacon Act (section 3141-3148, title 40, United States Code, “Wage Rate Requirements” [2002]).  

In addition, the complainant alleged DLA Troop Support issued supply contracts that did not have contract administration and allowed the contractor to perform inherently governmental functions.

What We Found

The allegations were not substantiated, and DLA Troop Support personnel did not violate Federal guidance as indicated in the allegations forwarded to the Defense Hotline. Specifically, DLA Troop Support personnel did not violate the Competition in Contracting Act, Buy American Act, National Defense Authorization Act, Antideficiency Act, and the Davis-Bacon Act when awarding and administering six Maintenance, Repair, and Operations contracts. In addition, DLA Troop Support did not allow the contractor to perform inherently governmental functions.  

Management Comments

No response to this report was required, and none was received. Therefore, we are publishing this report in final form.

This report is a result of Project No. D2012-D000LG-0166.000.