April 23, 2015 —
Our objective was to determine whether Space and Naval Warfare Systems Command (SPAWAR) contracting officials provided a fair opportunity to compete, supported price reasonableness determinations, and performed surveillance for task orders issued under multiple-award contracts for services and in accordance with Federal and DoD procedures. We reviewed a nonstatistical sample of 20 task orders from the multiple-award contracts awarded by SPAWAR Systems Center Pacific valued at $39.7 million.
SPAWAR officials generally provided a fair opportunity to compete, supported price reasonableness determinations, and performed surveillance for the global installation nonstatistically selected contracts and task orders. Officials also generally awarded and managed the task orders in accordance with regulations; however, some improvements are needed. Specifically contracting officials did not:
- properly designate contracting officer’s representatives (COR) because they did not prepare designation letters as required;
- verify contractor employees had the proper certifications because officials relied on contractor statements and subsequent COR spot checks; or
- close out task orders in a timely manner because officials did not always receive contractor’s completion reports, internal performance reviews, and funding reports.
As a result, SPAWAR officials increased cost and performance risk on the contract and may delay the return of funds that could be put to better use by not closing out the task orders in a timely manner.
We recommend that the SPAWAR Global Installation Contracts Contracting Officer verify that proposed CORs have the required training and properly designate all CORs before they perform oversight of a task order; revise the Quality Assurance Surveillance Plan to contain procedures for CORs to verify all contractor employees have required certifications. Further, we recommend that the contracting officer review and update the task order closeout process.
Management Comments and Our Response
The Deputy Assistant Secretary of the Navy (Acquisition & Procurement), responding for Space and Naval Warfare Systems Command, Global Installation Contracts, Contracting Officer, addressed all specifics of the recommendations, and no further comments are required.
This report is a result of Project No. D2014-D000CN-0163.000.