Audit of Management of Government‑Owned Property Supporting the F‑35 Program

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Date Issued

Wednesday, March 13, 2019

Submitting OIG

Department of Defense OIG

Other Participating OIGs

Department of Defense OIG

Agencies Reviewed/Investigated

Department of Defense

Components

Under Secretary of Defense for Acquisition and Sustainment

Defense Contract Management Agency (DCMA)

Report Number

DODIG-2019-062

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

Questioned Costs

$2,087,515,481

Funds for Better Use

Open Recommendations

This report has 7 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
D-2019-0062-D000RK-0001-0001.a	No	$0	$0
Rec. 1.a: The DoD OIG recommended that the Under Secretary of Defense for Acquisition and Sustainment review the accounting and management actions of the F-35 Program Office for F-35 Program Government property.
D-2019-0062-D000RK-0001-0002.a	No	$0	$0
Rec. 2.a: The DoD OIG recommended that the F-35 Program Executive Officer ensure that contracting officers identify and resolve government-furnished property list inaccuracies and incomplete or missing entries before attachment to and award of subsequent contracts.
D-2019-0062-D000RK-0001-0002.c	No	$0	$0
Rec. 2.c: The DoD OIG recommended that the F-35 Program Executive Officer, before the F-35 Program Office makes a decision to begin full-rate production of the F-35, ensure that the component property lead and accountable property officer reconcile all F-35 Program Government-furnished property by performing a complete inventory of delivered property and use the result of the inventory to establish a baseline property record in its accountable property system of record.
D-2019-0062-D000RK-0001-0002.d	No	$0	$0
Rec. 2.d: The DoD OIG recommended that the F-35 Program Executive Officer establish and implement procedures for property officials to continuously input the data required by DoD Instruction 5000.64 in its accountable property system of record.
D-2019-0062-D000RK-0001-0003.b	No	$0	$0
Rec. 3.b: The DoD OIG recommended that the F-35 Program Executive Officer direct F-35 Program Office officials, in coordination with the Defense Contract Management Agency and the prime contractor, before a decision to begin full-rate production of the F-35 is made, upon completion of Recommendation 3.a, ensure contractor-acquired property procured on past contracts is transitioned to Government-furnished property on contracting actions as required by the Defense Federal Acquisition Regulation Supplement.
D-2019-0062-D000RK-0001-0003.c	No	$0	$0
Rec. 3.c: The DoD OIG recommended that the F-35 Program Executive Officer direct F-35 Program Office officials, in coordination with the Defense Contract Management Agency and the prime contractor, before a decision to begin full-rate production of the F-35 is made and upon completion of Recommendation 3.a, ensure the required delivery of contractor-acquired property identified as special tooling or special test equipment for accountability and management purposes as required by the Defense Federal Acquisition Regulation Supplement.
D-2019-0062-D000RK-0001-0003.d	No	$0	$0
Rec. 3.d: The DoD OIG recommended that the F-35 Program Executive Officer direct F-35 Program Office officials, in coordination with the Defense Contract Management Agency and the prime contractor, before a decision to begin full-rate production of the F-35 is made, provide updates for the accountable property system of record for any Government-furnished property resulting from the actions taken for contractor-acquired property in the previous recommendations.