Public Works Operations at U.S. Army Garrison-Yongsan, Korea
Abstract
The Inspector General, Department of Defense (IG/DoD), determined whether controls were in place and working as intended for the U.S. Army Garrison-Yongsan Directorate of Public Works (DPW) to provide goods and services to its customers in the most effective and efficient manner. They examined DPW contract actions of $5.9 million, purchases from the Prime Vendor of $1 million, and Government purchase card transactions of $393,000. DPW-Yongsan had established controls to reduce some of the risks found during prior audits at other DPWs in Korea. However, additional internal controls over operations needed improvements. DPW did not estimate requirements for indefinite-delivery, indefinite-quantity contract solicitations on a reasonable basis. DPW did not exercise delivery orders to achieve maximum effectiveness and efficiency, which resulted in questionable costs of up to $924,000, including $79,851 in overpayments to contractors to be recovered. DPW's heavy reliance on the prime vendor for purchases of supplies resulted in expenditures of $347,467 (53%) more than the fair market value for a sample of 64 purchases. DPW did not properly document Government purchase card transactions, ensure separation of duties, avoid third-party vendors, or obtain property book officer approval when required. DPW did not always update real property records or obtain as-built drawings from contractors on completion of work. In providing contracting support, the U.S. Army Contracting Command-Korea did not determine unbalanced pricing or price reasonableness in accordance with the Federal Acquisition Regulation. As a result, the current general repair contract cost $219,192 (41%) more than the second lowest offer for the first 11 delivery orders. Recommendations from the IG/DoD for DPW and the U.S. Army Contracting Command-Korea are provided.
Document Details
- Document Type
- Technical Report
- Publication Date
- May 04, 2010
- Accession Number
- ADA520203
Entities
Organizations
- Office of the Inspector General, U.S. Department of Defense