Improvements Needed in Contract Administration of the Subsistence Prime Vendor Contract for Afghanistan
Abstract
As of May 31, 2010, Defense Logistics Agency Troop Support personnel paid the prime vendor about $3 billion, including $1.6 billion for food and water and $1.4 billion for nonfood items, such as transportation and storage costs. Our objectives were to evaluate the contract administration of the prime vendor contract for subsistence in support of Afghanistan and to review whether the assignment of contracting officer's representatives and execution of the Quality Assurance Surveillance Plan and procedures were effective. The subsistence prime vendor for Afghanistan provided the food products required by the contract. However, subsistence contracting officials at the Defense Logistics Agency Troop Support did not provide sufficient oversight of contract costs and performance. Specifically, the contracting officer did not adhere to certain provisions of the Federal Acquisition Regulation and the DoD supplement, or develop a Quality Assurance Surveillance Plan and written procedures to monitor contractor costs and performance. Our review showed that troop support personnel: overpaid the prime vendor potentially $98.4 million in transportation costs; overpaid the prime vendor approximately $25.9 million for triwall costs; paid $454.9 million to the prime vendor for airlifting fresh fruit and vegetables without incorporating the airlift requirement in the contract and without documenting whether the airlift price of $3.74 per pound was fair and reasonable; did not validate whether $103.6 million in triwall costs was accurate and chargeable to the contract; and did not monitor the accountability of Government-furnished material. Also, Troop Support personnel billed the Army $56.5 million in transportation, triwall, and storage costs to the incorrect FY appropriation for FYs 2006 through 2009. Correcting the billing problems may cause Antideficiency Act violations.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 02, 2011
- Accession Number
- ADA546717
Entities
Organizations
- Office of the Inspector General, U.S. Department of Defense