Publicly Released: April 27, 2023
The objective of this audit was to determine whether Navy contracting personnel executed contract administration responsibilities for dining, medical, and facilities sustainment services in support of Operation Allies Welcome (OAW) in accordance with Federal and DoD policies.
This report focuses on the Navy Global Contingency Services Contract (GCSC) supplies and services used to support the OAW mission at Marine Corps Base (MCB) Quantico. During the course of OAW, Government personnel and contractors provided support to over 5,000 Afghan evacuees at MCB Quantico.
Navy contracting personnel did not fully execute contract administration responsibilities at MCB Quantico. Navy contracting personnel provided adequate oversight of contractor performance for dining, medical, and facilities sustainment services supporting the relocation of Afghan evacuees; however, the contractor did not provide sufficient supporting documentation for its incurred costs, which prevented the administrative contracting officer from adequately reviewing contractor invoices.
The Navy’s oversight and the contracting officer’s representatives execution of contract oversight procedures helped ensure that the contractor provided adequate dining, medical, and facilities sustainment services to Afghan evacuees. In addition, effective oversight directly led to a reduction of $3.5 million in awards fees to the contractor. However, as of the date of this report, the Navy had not verified whether the additional $30.1 million in payments made to the contractor, excluding the award fee, were allowable, allocable, and reasonable.
We recommend that the Naval Facilities Engineering Systems Command Director of Contracting, People and Processes ensure that the administrative contracting officer, based on the Defense Contract Audit Agency review of invoices four through six of the GCSC OAW task order, request a refund from the contractor for any excess payments or arrange for payment to the contractor for any under-billed costs.
Management Comments and Our Response
The Commander, Naval Facilities Engineering Systems Command agreed with the recommendation and described a planned action. The recommendation is resolved and will remain open until the Naval Facilities Engineering Systems Command provides documentation showing that the action has been completed.
This report is a result of Project No. D2022-D000RJ-0133.003