Environmental Programs: Naval Facilities Engineering Command Environmental Services Contracting

Abstract

DoD procurement, contracting, and environmental program professionals and policy makers should read this report. The report discusses the procurement, performance, and oversight of selected environmental services contracts at the Naval Facilities Engineering Command (NAVFAC). This audit was conducted in response to a complaint to the General Accounting Office concerning NAVFAC services contracts. The General Accounting Office referred the complaint to the Defense Hotline. The complaint alleged favoritism in the award of environmental services contracts, questioned the appropriateness of a NAVFAC facilities management contract, and alleged that the NAVFAC Atlantic Division illegally and improperly extended a 5-year environmental services contract for an additional 5 years. Favoritism in the award of environmental services contracts did not occur and the facilities management contract award was proper. However, there were problems with the extended time frames for contracts. The NAVFAC Atlantic Division did not comply with competition requirements in regulations when it improperly extended environmental services contracts N62470-93-D-3033 and N62470-97-D-5000, with a total estimated value of $325 million, for 5 years and 2 years, respectively. In addition, NAVFAC headquarters improperly exceeded regulatory 5-year contract limits by including a 7-year limit for four multi-award environmental services contracts with a total value of $758 million. Neither the extensions nor the 7-year limit was supported by adequate written justification or cost/price analysis. NAVFAC contracting officials made inaccurate interpretations of Federal Acquisition Regulation competition requirements. In addition, NAVFAC headquarters had not developed a strategy to award environmental services procurements and did not coordinate the 1998 multiple award procurement with all its Component divisions.

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Document Details

Document Type
Technical Report
Publication Date
Aug 20, 2002
Accession Number
ADA407890

Entities

Organizations

  • Office of the Inspector General, U.S. Department of Defense

Tags

Communities of Interest

  • Human Systems

DTIC Thesaurus Topics

  • Acquisition
  • Business Administration
  • Commerce
  • Contract Administration
  • Contractors
  • Contracts
  • Department Of Defense
  • Engineering
  • Environmental Restoration And Remediation
  • Governments
  • Management Personnel
  • National Security
  • Naval Procurement
  • Organizational Structure
  • Procurement
  • Small Business
  • United States

Readers

  • Defense Financial Management and Audit.
  • Environmental Engineering.