Evaluation of DoD Financial Responsibility Reviews on Prospective DoD Contractors

Rec. 1.a: The DoD OIG recommended that the Deputy Assistant Secretary of the Army (Procurement), Deputy Assistant Secretary of the Navy (Procurement), Associate Deputy Assistant Secretary of the Air Force (Acquisition, Technology, and Logistics), and Defense Logistics Agency Acquisition Director require the contracting officers for the 35 open contracts identified in Appendix B to reevaluate the contractors' financial capability.

Rec. 1.b: The DoD OIG recommended that the Deputy Assistant Secretary of the Army (Procurement), Deputy Assistant Secretary of the Navy (Procurement), Associate Deputy Assistant Secretary of the Air Force (Acquisition, Technology, and Logistics), and Defense Logistics Agency Acquisition Director require the contracting officers for the 35 open contracts identified in Appendix B to include sufficient documentation in the contract file to support the results of the reevaluation of financial responsibility.

Rec. 2.a.1: The DoD OIG recommended that the Deputy Assistant Secretary of the Army (Procurement); Deputy Assistant Secretary of the Navy (Procurement); Deputy Assistant Secretary of the Air Force (Acquisition, Technology and Logistics); and Defense Logistics Agency Acquisition Director update and implement their Component policies to describe the types and extent of financial information required to document contracting officer financial responsibility determinations and to maintain the documentation in the contract file in accordance with the Defense Federal Acquisition Regulation Supplement 232.072-2.

Rec. 2.a.1: The DoD OIG recommended that the Deputy Assistant Secretary of the Army (Procurement); Deputy Assistant Secretary of the Navy (Procurement); Deputy Assistant Secretary of the Air Force (Acquisition, Technology and Logistics); and Defense Logistics Agency Acquisition Director update and implement their Component policies to describe the types and extent of financial information required to document contracting officer financial responsibility determinations and to maintain the documentation in the contract file in accordance with the Defense Federal Acquisition Regulation Supplement 232.072-2.

Rec. 2.a.2: The DoD OIG recommended that the Deputy Assistant Secretary of the Army (Procurement); Deputy Assistant Secretary of the Navy (Procurement); Deputy Assistant Secretary of the Air Force (Acquisition, Technology and Logistics); and Defense Logistics Agency Acquisition Director update and implement their Component policies to indicate that the Defense Contract Management Agency's Financial Capability Team is available to assist them in determining financial responsibility of prospective contractors.

Rec. 2.b: The DoD OIG recommended that the Deputy Assistant Secretary of the Army (Procurement); Deputy Assistant Secretary of the Navy (Procurement); Deputy Assistant Secretary of the Air Force (Acquisition, Technology and Logistics); and Defense Logistics Agency Acquisition Director issue a memorandum to the DoD contracting officers to advise them of the policy updates made in response to Recommendation 2.a.

Rec. 2.b: The DoD OIG recommended that the Deputy Assistant Secretary of the Army (Procurement); Deputy Assistant Secretary of the Navy (Procurement); Deputy Assistant Secretary of the Air Force (Acquisition, Technology and Logistics); and Defense Logistics Agency Acquisition Director issue a memorandum to the DoD contracting officers to advise them of the policy updates made in response to Recommendation 2.a.