Report | April 15, 2015

Independent Auditor's Report on Agreed-Upon Procedures for DoD Compliance With Service Contract Inventory Compilation and Certification Requirements for FY 2013



Our objective was to assess DoD’s compliance with Federal and DoD requirements when Components compiled and certified the FY 2013 inventory of contracts for services (ICS).  We observed the methods that the Components used to compile the ICS and the completeness of information in Component certification letters.  In addition, we followed up on recommendations from our report on DoD’s FY 2012 ICS.


DoD compiled and submitted an FY 2013 ICS to Congress, as required.  DoD’s FY 2013 ICS reported on two additional Components that were not part of the FY 2012 ICS and did not include information on eight Components.  In addition, fewer Components submitted complete information for inclusion into the FY 2013 ICS than in FY 2012.

DoD Components used different sources and methods to compile their FY 2013 ICS and to calculate contractor full-time equivalents.  DoD continues to face limitations to fully capture and consistently report on service contracts.

Of the 33 Components that submitted an ICS, 31 submitted a certification letter for the FY 2013 reporting period. Fourteen Components submitted late certifications, and only 10 of the 31 Components included all eight required elements in their certification letters. In addition, Components varied in the level of information they provided in the certifications to address the required certification letter elements. Further, DoD did not provide Components with specific guidance on how to address mandated funding reductions in the certification letters.


DoD officials should:

  • clarify the extent Components should address the requirement to identify contracted services to be realigned to Government performance; and
  • issue clarifying guidance to Components on how to report funding reductions in the certification letter.

Management Comments and Our Response

Comments from the Under Secretary of Defense for Acquisition, Technology, and Logistics; the Under Secretary of Defense (Comptroller); and the Under Secretary of Defense for Personnel and Readiness addressed the specifics of the recommendations, and no further comments are required. We will follow up on the status of these actions during our review of DoD’s FY 2014 inventory of contracts for services.