April 16, 2018 —
We determined whether the Naval Facilities Engineering Command (NAVFAC) Pacific adequately monitored contractor performance and conducted sufficient invoice reviews for goods and services provided under the Base Operations Support Services (BOSS) contract in Guam.
NAVFAC Pacific provides acquisition services to the Pacific area of responsibility through subordinate commands, including Naval Facilities Engineering Command Marianas (NAVFACMAR) in Guam. According to NAVFACMAR, NAVFAC Pacific is the procuring authority—soliciting and awarding BOSS contracts for naval operations in the region. Also, according to NAVFACMAR, NAVFACMAR is the administrative authority—presiding over the daily contract operations while providing contractor oversight for NAVFAC contracts in Guam.
NAVFACMAR adequately monitored contractor performance and conducted sufficient invoice reviews for goods and services provided under the Guam BOSS contract from April 1, 2016, through March 31, 2017. Specifically, NAVFACMAR:
- Developed complete and measurable functional assessment plans and used them to assess contractor performance
- Completed specific and detailed performance assessments;
- Worked with contractor personnel to address performance concerns at the operations level; and
- Collected and reviewed required invoice supporting documentation to verify that contractor-submitted charges were appropriate before invoices were paid.
NAVFACMAR adequately monitored contractor performance and conducted sufficient invoice reviews because it took corrective actions in response to recommendations made in a 2013 Naval Audit Service report. Specifically, NAVFACMAR updated and implemented policies and procedures related to contractor performance assessments and invoice reviews, and established controls and provided training on appropriate contractor performance and cost oversight. The corrective actions NAVFACMAR took in response to the recommendations improved contractor oversight and ensured that the contractor was performing in accordance with the Guam BOSS contract terms and conditions and that the contractor was paid correctly. NAVFAC has awarded multiple BOSS contracts around the world that are managed by other NAVFAC regions. Those contracts could benefit from the robust oversight structure NAVFACMAR has implemented in Guam.
We recommend that the Commander, NAVFAC, Headquarters compile lessons learned from NAVFACMAR’s contract oversight procedures and apply those lessons learned to ongoing and future Base Operations Support Services contracts in all NAVFAC regions.
Management Comments and Our Response:
The Inspector General, NAVFAC, commenting for the Commander, NAVFAC, Headquarters agreed, stating that NAVFAC Headquarters is working with NAVFAC Pacific and NAVFACMAR to identify lessons learned that will be applied to continue process improvement for all NAVFAC-administered Facilities Support contracts and BOSS contracts.
Comments from the Inspector General addressed all specifics of the recommendation, and therefore, the recommendation is resolved. We will close the recommendation when we verify that NAVFAC Headquarters has reviewed NAVFACMAR’s contract oversight procedures to identify lessons learned that will be applied to ongoing and future BOSS contracts.
This report is a result of Project No. D2017-D000RA-0086.000.