Report | July 2, 2015

Naval Facilities Engineering Command Needs to Improve Controls Over Task Order Administration

DODIG-2015-141

Objective

Our objective was to determine whether Naval Facilities Engineering Command (NAVFAC) Pacific and Marianas contracting officials were properly administering task orders and payments for the Guam Design-Build Multiple Award Construction Contract (Guam MACC). Of the 11 Guam MACC task orders executed and administered in Guam, we nonstatistically selected task order N62742-10-D-1308-0001 for review.

Finding

NAVFAC Marianas contract administration personnel did not effectively administer the Guam MACC task order. Specifically, NAVFAC Marianas personnel did not ensure that:

  • construction specifications met Federal and DoD requirements for two of the seven modifications reviewed because NAVFAC guidance did not require that modifications include references to applicable construction standards, and that contract administration personnel confirm that the description of work complied with those standards before modifications were issued,
  • Independent Government Estimates (IGEs) were properly prepared and furnished to the contracting officer for the six modifications that required an IGE because NAVFAC lacked adequate implementing guidance that addressed IGE preparation and independent review, and
  • task order files were properly maintained because NAVFAC Marianas contract administration personnel stored some required documentation on an unapproved electronic filing system.

As a result, DoD did not have a comprehensive record of decisions made on the task order, and expended at least $1.45 million and added 93 days to the construction schedule for facilities that did not meet requirements and required further modification.

As a result of our audit, NAVFAC Marianas personnel started to implement corrective actions on construction specifications, estimates, and contract documentation.

Recommendations

We recommend that the Commander, Naval Facilities Engineering Command establish or revise internal guidance or procedures to ensure that: task order modifications meet criteria; procedures include detailed steps to prepare and review independent government estimates; and contract administration personnel properly maintain all documentation. Additionally, we recommend that the Commander ensure that personnel preparing and reviewing IGEs are adequately trained. We also recommend that the Commander, Naval Facilities Engineering Command, Marianas evaluate the requirements for the helipad and hazardous waste storage for the P-528 project and ensure that they are built to meet applicable standards and guidance.

Management Comments and Our Response

The Commander, NAVFAC, Marianas, responding for the Commander, NAVFAC, fully addressed all specifics of the recommendations, and no further comments are required.