Audit of Sole-Source Depot Maintenance Contracts

Submitting OIG:

Department of Defense OIG

Date Issued:

Thursday, July 21, 2022

Agency Reviewed / Investigated:

Department of Defense

Submitting OIG-Specific Report Number:

DODIG-2022-104

Component, if applicable:

Defense Contract Management Agency (DCMA)

Missile Defense Agency (MDA)

Under Secretary of Defense for Acquisition and Sustainment

United States Air Force (USAF)

United States Army (USA)

United States Navy (USN)

Location(s):

Agency-Wide

Type of Report:

Audit

Questioned Costs:

$919,613

Funds for Better Use:

$919,613

Number of Recommendations:

Report updated under NDAA 5274:

View Document:

Attachment	Size
DODIG-2022-104.pdf	33.2 MB

Related Open Recommendations

Recommendation Number	Recommendation Status	Significant Recommendation
D-2022-0104-D000AH-0001-0001.A1a	Open	No
Rec. A.1.a: The DoD OIG recommended that the Commander of the Naval Supply Systems Command require the contracting officials responsible for contract N00383-19-D-V001 to work with the program office to review the process for procuring long-lead materials and identify alternative options for procuring long lead materials, as appropriate.
D-2022-0104-D000AH-0001-0001.A1b	Open	No
Rec. A.1.b: The DoD OIG recommended that the Commander of the Naval Supply Systems Command require the contracting officer for contract N00383-17-D-BA01 to reconcile and recover the cost of Government-furnished material that should have been applied to two delivery orders, valued at $919,613.44.
D-2022-0104-D000AH-0001-0006.A6	Open	No
Rec. A.6: The DoD OIG recommended that the Commander of the Air Force Life Cycle Management Center direct Air Force Life Cycle Management Center contracting officials to work with U-2 program officials to identify alternative cost-effective maintenance options for maintaining the aging U-2 aircraft.
D-2022-0104-D000AH-0002-0001.B1a	Open	No
Rec. B.1.a: The DoD OIG recommended that the Commander of the Naval Sea Systems Command and the Commander of the Navy Regional Maintenance Center collaborate with major defense ship contractors to identify potential initiatives to increase the number of contractor-owned dry docks.
D-2022-0104-D000AH-0002-0001.B1b	Open	No
Rec. B.1.b: The DoD OIG recommended that the Commander of the Naval Sea Systems Command and the Commander of the Navy Regional Maintenance Center review the policies and procedures for developing requirements for ship repair maintenance to identify ways to reduce the number of change orders issued, and document the review.
D-2022-0104-D000AH-0002-0002.B2a	Open	No
Rec. B.2.a: The DoD OIG recommended that the Commander of the Naval Sea Systems Command direct the Commander of the Navy Regional Maintenance Center to review and update work item packages to ensure that clear and consistent requirements are used for routine depot maintenance tasks, as necessary.
D-2022-0104-D000AH-0002-0002.B2b	Open	No
Rec. B.2.b: The DoD OIG recommended that the Commander of the Naval Sea Systems Command review the use of the firm-fixed-price contract type for future Naval Sea Systems Command ship repair contracts and document the review.
D-2022-0104-D000AH-0002-0002.B2c	Open	No
Rec. B.2.c: The DoD OIG recommended that the Commander of the Naval Sea Systems Command determine whether indefinite-delivery indefinite-quantity multiple-award contracts should be used for future coast-wide availabilities, which could include a requirement for all contractors to bid on each solicitation or provide their rationale for not bidding on the contract.
D-2022-0104-D000AH-0002-0002.B2d	Open	No
Rec. B.2.d: The DoD OIG recommended that the Commander of the Naval Sea Systems Command update contracting procedures to clearly state what information is required, such as a detailed breakdown of labor categories and labor hours, as well as cost and pricing data that is sufficient to support fair and reasonableness determinations for depot maintenance ship repair contracts.

Department of Defense OIG

Department of Defense

The Department of Defense Office of Inspector General was established in 1982. The mission of the DoD OIG, as established by the Inspector General Act of 1978, as amended, (5 U.S.C. Appendix); and implemented by DoD Directive 5106.01, "Inspector General of the Department of Defense," is to serve as an independent and objective office in DoD to:

a) conduct, supervise, monitor, and initiate audits, evaluations, and investigations relating to programs and operations of the Department of Defense,

b) provide leadership and coordination and recommend policies for activities designed to promote economy, efficiency, and effectiveness in the administration of, and to prevent and detect fraud and abuse in, such programs and operations,

c) provide a means for keeping the Secretary of Defense and the Congress fully and currently informed about problems and deficiencies relating to the administration of such programs and operations and the necessity for and progress of corrective action

http://www.dodig.mil

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Audit of Sole-Source Depot Maintenance Contracts

Related Open Recommendations