Waxman: GAO Finds Problems with Defense Department Contract in Iraq

[babylonsister]

Thursday, August 09, 2007
Iraq Reconstruction

GAO Finds Problems with Defense Department Contract in Iraq

Chairman Waxman releases a GAO report analyzing the Defense Department’s decision to pay KBR nearly all of the $221 million in costs that the Defense Contract Audit Agency questioned during its audits of the Restore Iraqi Oil contract for reconstruction work on Iraq’s oil infrastructure. The report finds multiple violations of federal acquisition regulations and procedures, placing millions of taxpayer dollars at risk and leaving questions unanswered.


GAO Report, Fact Sheet at link:

http://oversight.house.gov/story.asp?ID=1455

[133724]

1. good read....

In addition to not holding formal evaluations as planned during the period of performance, DOD did not meet the rigor called for in the award fee plan when providing interim performance feedback to the contractor. DOD did provide some interim feedback to the contractor on its performance during the period of performance. For example, DOD officials and contractor representatives told us that DOD contracting staff and contractor staff had daily informal discussions about contractor performance. In addition, RIO administrative contracting officers sent the contractor letters on a semiannual basis that provided feedback on the contractor’s performance. However, as discussed previously, the award fee plan states that the award fee board should hold monthly interim evaluations of the contractor’s performance and provide the contractor

....


In addition to not holding formal evaluations as planned during the period of performance, DOD did not meet the rigor called for in the award fee plan when providing interim performance feedback to the contractor. DOD did provide some interim feedback to the contractor on its performance during the period of performance. For example, DOD officials and contractor representatives told us that DOD contracting staff and contractor staff had daily informal discussions about contractor performance. In addition, RIO administrative contracting officers sent the contractor letters on a semiannual basis that provided feedback on the contractor’s performance. However, as discussed previously, the award fee plan states that the award fee board should hold monthly interim evaluations of the contractor’s performance and provide the contractor.

...


DOD Could Not Provide Sufficient Documentation to Enable Us to Fully Evaluate Its Adherence to Its Award Fee Plan

...

To meet the urgent operational needs of reestablishing Iraq’s oil infrastructure and importing fuel, the Corps authorized the contractor to begin work before task orders had been definitized. Factors such as changing requirements, funding challenges, and problems with contractor proposals delayed negotiations until well past the timing required by DOD for definitization. For all 10 RIO I task orders, the work was completed before negotiations were finalized. Delays in definitizing contract actions can increase the risk to the government by reducing cost control incentives, particularly for cost reimbursement type contracts.

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