Audit of the DoD’s Oversight of Cost-Plus-Award-Fee Contracts

Submitting OIG:

Department of Defense OIG

Date Issued:

Wednesday, February 14, 2024

Agency Reviewed / Investigated:

Department of Defense

Submitting OIG-Specific Report Number:

DODIG-2024-055

Location(s):

Agency-Wide

Type of Report:

Audit

Questioned Costs:

$1,059,469

Funds for Better Use:

Number of Recommendations:

Report updated under NDAA 5274:

View Document:

Attachment	Size
DODIG-2024-055-SECURE.pdf	24.33 MB

Recommendation Number	Recommendation Status	Significant Recommendation
D-2024-0055-D000AT-0001-0001.A1a	Open	No
Rec. A.1.a: The DoD OIG recommended that the Commanding General, Army Mission and Installation Contracting Command establish and implement a process that ensures contracting officials calculate the contractor's award fees in accordance with the approved award-fee plan criteria
D-2024-0055-D000AT-0001-0001.A1b	Open	No
Rec. A.1.b: The DoD OIG recommended that the Commanding General, Army Mission and Installation Contracting Command require the contracting officials to recalculate the prior award-fee amounts earned by the contractor to identify overpayments. The calculation should be done for the current and previous contract this contractor was awarded. Once that is complete, the Commanding General should require the contracting officer to pursue compensation from the contractor for overpayments, including the $872,309 identified in this report.
D-2024-0055-D000AT-0001-0002.A2a	Open	No
Rec. A.2.a: The DoD OIG recommended that the Deputy Assistant Secretary for Contracting, Office of the Assistant Secretary of the Air Force (Acquisition, Technology, and Logistics), direct the Air Force Nuclear Weapons Center Director of Contracting to establish and implement a process that ensures contracting officials do not allow the contractor to begin work without an approved award-fee plan that documents how the contractor's performance will be assessed.
D-2024-0055-D000AT-0001-0002.A2b	Open	No
Rec. A.2.b: The DoD OIG recommended that the Deputy Assistant Secretary for Contracting, Office of the Assistant Secretary of the Air Force (Acquisition, Technology, and Logistics), direct the Air Force Space Systems Center Director of Contracting to establish and implement a process that ensures contracting officials support and justify any award-fee changes within the contract file in a timely manner.
D-2024-0055-D000AT-0001-0003.A3	Open	No
Rec. A.3: The DoD OIG recommended that the Air Force Space Systems Center Director of Contracting require contracting officials to recalculate the award-fee amount earned by the contractor and pursue compensation from the contractor if any portion of the $187,160 is not supported.
D-2024-0055-D000AT-0002-0001.B1a	Open	No
Rec. B.1.a: The DoD OIG recommended that the Assistant Secretary of the Army (Acquisition, Logistics, and Technology) implement controls sufficient to ensure that contracting officials are following Federal and DoD requirements related to administration and management of cost-plus-award-fee contracts.
D-2024-0055-D000AT-0002-0001.B1b	Open	No
Rec. B.1.b: The DoD OIG recommended that the Assistant Secretary of the Navy (Research, Development, and Acquisition) implement controls sufficient to ensure that contracting officials are following Federal and DoD requirements related to administration and management of cost-plus-award-fee contracts.
D-2024-0055-D000AT-0002-0001.B1c	Open	No
Rec. B.1.c: The DoD OIG recommended that the Deputy Assistant Secretary for Contracting, Office of the Assistant Secretary of the Air Force (Acquisition, Technology, and Logistics) implement controls sufficient to ensure that contracting officials are following Federal and DoD requirements related to administration and management of cost-plus-award-fee contracts.
D-2024-0055-D000AT-0002-0001.B1e	Open	No
Rec. B.1.e: The DoD OIG recommended that the Director of Contracting, Missile Defense Agency implement controls sufficient to ensure that contracting officials are following Federal and DoD requirements related to administration and management of cost-plus-award-fee contracts. _____
D-2024-0055-D000AT-0003-0001.C1a	Open	No
Rec. C.1.a: The DoD OIG recommended that the Defense Pricing and Contracting Principal Director, in coordination with the Military Departments and Defense agencies, establish and implement a solution to accurately capture all relevant cost-plus-award-fee data.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

D-2024-0055-D000AT-0001-0001.A1a

Open

Rec. A.1.a: The DoD OIG recommended that the Commanding General, Army Mission and Installation Contracting Command establish and implement a process that ensures contracting officials calculate the contractor's award fees in accordance with the approved award-fee plan criteria

D-2024-0055-D000AT-0001-0001.A1b

Open

Rec. A.1.b: The DoD OIG recommended that the Commanding General, Army Mission and Installation Contracting Command require the contracting officials to recalculate the prior award-fee amounts earned by the contractor to identify overpayments. The calculation should be done for the current and previous contract this contractor was awarded. Once that is complete, the Commanding General should require the contracting officer to pursue compensation from the contractor for overpayments, including the $872,309 identified in this report.

D-2024-0055-D000AT-0001-0002.A2a

Open