Audit of Air Force Defective Parts and Contractor Restitution

Rec. A.1.b: The DoD OIG recommended that the Commander, Air Force Materiel Command update Air Force Technical Order 00-35D-54, "USAF Deficiency Reporting, Investigation, and Resolution (DRI&R),"August 15, 2022, to provide details on the process for obtaining restitution from contractors that provide defective parts. The guidance should identify key roles and responsibilities and require the involvement of the responsible contracting officer in the process. The guidance should also require personnel to preserve an audit trail to support the receipt of restitution and specify the type of documentation needed. Upon completion of the updates, establish a program to provide recurring training to Air Force deficiency reporting personnel and monitor compliance with the requirement.

Rec. B.1.a: The DoD OIG recommended that the Commander, Air Force Materiel Command require C-130J aircraft deficiency reporting personnel to establish a process to track defective C-130J aircraft parts to ensure that the parts are shipped to the contractor and repaired or replaced under warranty. Also, comment on the $3 million in questioned costs related to defective parts the Air Force was unable to recover and $200,000 in questioned costs the Air Force incurred to repair defective parts under warranty. If the Commander disagrees with the questioned costs, identify the amount and the reason.