U.S. Army Contracting Command's Acquisition of Mobile Strike Force Vehicles for the Afghan National Army: Audit of Costs Incurred by Textron Inc. Marine and Land Systems
Abstract
On January 21, 2011, the U.S. Army Contracting Command (ACC) awarded an $84,961,000 contract to Textron Inc. Marine and Land Systems (Textron) to support pre-production efforts and the production of Mobile Strike Force Vehicles (MSFVs) for the Afghan National Defense and Security Forces. ACC modified the contract 60 times, which increased its value from $84,961,000 to $631,195,401 and extended the period of performance from January 31, 2012, to September 30, 2015. This financial audit focused on modifications P00021 and P00025, valued at $30,512,355 and $9,115,967, respectively. The purpose of these modifications was to exercise options requiring Textron to acquire MSFVs for the Afghan National Army. SIGAR's financial audit, performed by Mayer Hoffman McCann (MHM), reviewed $26,612,072 in expenditures that Textron charged to the contract for the period from May 23, 2012, through May 25, 2014. The objectives of the audit were to (1) identify and report on material weaknesses or significant deficiencies in Textron's internal controls related to the contract; (2) identify and report on instances of material noncompliance with the terms of the contract and applicable laws and regulations, including any on potential fraud or abuse; (3) determine and report on whether Textron has taken corrective action on prior findings and recommendations; and (4) express an opinion on the fair presentation of Textron's Special Purpose Financial Statement (SPFS). See MHM's report for the precise audit objectives. In contracting with an independent audit firm and drawing from the results of the audit, SIGAR is required by auditing standards to review the audit work performed. Accordingly, SIGAR oversaw the audit and reviewed its results. Our review disclosed no instances where MHM did not comply, in all material respects, with U.S. generally accepted government auditing standards.
Document Details
- Document Type
- Technical Report
- Publication Date
- Oct 01, 2017
- Accession Number
- AD1139629
Entities
People
- John Sopko
Organizations
- Special Inspector General for Afghanistan Reconstruction