Results in Brief
Our objective was to review the adequacy of cost-control procedures and contract administration for cost-plus-award-fee contract W91RUS-10-C-0001 used at Fort Huachuca, Army Contracting Command–Aberdeen Proving Ground. In addition, the audit addresses three allegations concerning administration of the contract raised to the Defense Hotline.
Fort Huachuca, Army Contracting Command–Aberdeen Proving Ground officials could improve the administration and oversight of cost-plus-award-fee contract W91RUS-10-C-0001, with a total estimated value of $286,541,416. Specifically, Fort Huachuca, contracting officials did not:
- include adequate documentation to support incremental funding modifications within the contract file;
- properly authorize contract oversight or update the quality assurance surveillance plan; or
- evaluate contractor perfor mance with standards that were compliant with the Army Federal Acquisition Regulation Supplement.
This occurred because contracting officials used one contract modification to fund multiple work assignment orders (WAOs) and did not identify which WAOs were funded in the modification; misinterpreted the Army Contracting Command Pamphlet 70-1 and did not designate or train work assignment order authors and test officers as alternate contracting officer’s representatives, as required. In addition, contracting officials were unaware of the Army Federal Acquisition Regulation Supplement requirements regarding contractor performance criteria and used conflicting wording in the award-fee plan.
As a result, Fort Huachuca contracting officials may have overpaid for contract cost increases. Furthermore, we determined that one of the three Defense Hotline allegations was partially substantiated. This allegation was addressed during the audit. The other two allegations were unsubstantiated.
We issued a quick reaction memorandum on January 16, 2014, based on concerns regarding the contract administration for contract W91RUS-10-C-0001. Fort Huachuca officials responded to the memorandum on February 5, 2014, with acceptable corrective actions for the follow-on contract to provide an audit trail from contract modifications to WAOs; properly authorize and train test officers; update the quality assurance surveillance plan; and revise the award-fee plan. Therefore, we are not making any recommendations.
We do not require a written response to this report. We provided a discussion draft to Fort Huachuca, Army Contracting Command–Aberdeen Proving Ground officials.