Report | May 19, 2016

Independent Auditor's Report on Agreed-Upon Procedures for DoD Compliance With ServiceContract Inventory Compilation and Certification Requirements for FY 2014



We assessed whether DoD complied with Federal and DoD requirements when Components compiled and certified the FY 2014 inventory of contracts for services (ICS). We observed the methods that DoD Components used to compile the ICS and the completeness of information in Component certification letters. In addition, we followed up on recommendations from our reports on DoD’s FY 2012 and FY 2013 ICS.


DoD compiled and submitted an FY 2014 ICS to Congress, as required; however, the report was submitted 2 months past the Federally mandated deadline. DoD included four additional Components in the report that were not part of the FY 2013 ICS and did not include information on six Components. In addition, fewer Components included complete information in their FY 2014 ICS submissions than in FY 2013.

DoD Components used different sources and methods to compile their FY 2014 ICS and to calculate contractor full‑time equivalents. DoD continues to face limitations to fully capture and consistently report on service contracts. Of the 38 Components that submitted an ICS, 37 submitted a certification letter for the FY 2014 reporting period. Thirteen Components submitted late certification letters. Of the 37 Components, only 10 included all seven required elements. In addition, Components varied in the level of information they provided in the certifications to address the elements required in the certification letter. Components would benefit from clarification on the certification letter requirements.


We recommend that the Under Secretary of Defense for Acquisition, Technology, and Logistics, and the Under Secretary of Defense for Personnel and Readiness revise sections of the Office of the Secretary of Defense Guidance that are related to the FY 2016 ICS review. Revisions should:

  • identify and explain the specific items, outcomes, or results that Components are tasked to discuss in the certification letters related to specific review techniques; functions to realign to Government performance; use of the ICS; and overseas contingency operation funded actions; and
  • identify and explain the elements that Components are required to fully assess and report in the certification letters and which elements are goals that Components should work toward.

Management Comments and Our Response

Comments from the Under Secretary of Defense for Acquisition, Technology, and Logistics and the Under Secretary of Defense for Personnel and Readiness addressed the specifics of the recommendation, and no further comments are required.

This report is a result of Project No. D2016-D000CG-0036.000.