Funding for Enhancements to the Standard Procurement System

Abstract

During our audit of the Standard Procurement System (SPS) at the Joint Contracting Command-Iraq/Afghanistan, we identified funding issues with SPS. Our audit objective was to determine whether Army officials properly funded SPS enhancements for the Joint Contracting Command-Iraq/Afghanistan. We reviewed funding documentation related to the SPS enhancements in task order 0105, contract number W91V38-07-D-0001. Army Contracting Agency, Information Technology, E-Commerce and Commercial Contracting Center (ACA-ITEC4), contracting officials inappropriately used approximately $755,000 of FY 2008 Operation and Maintenance (O&M) funds rather than Procurement funds for the SPS enhancements. This occurred because ACA-ITEC4 contracting officials misinterpreted the DoD Financial Management Regulation. As a result, the ACA-ITEC4 potentially may have created a Purpose Statute violation and may have violated the Antideficiency Act. We recommend that the Assistant Secretary of the Army (Financial Management and Comptroller) (ASA[FM&C]) initiate a preliminary review for the potential Antideficiency Act violation identified, ensure that the preliminary review is completed within 14 weeks, and report the results of the review to the DoD Office of Inspector General. The Deputy Assistant Secretary of the Army (Financial Operations) responded for the ASA(FM&C). The Deputy Assistant Secretary of the Army (Financial Operations) disagreed with our recommendation and stated that, based on his coordination with the Army Contracting Command-National Capital Region, he found no evidence that O&M funds were misused. He also stated that even if O&M funds were misused, the Army had sufficient Other Procurement, Army funds to adjust the accounts. The Deputy Assistant Secretary's comments were not responsive. He did not agree that a potential Antideficiency Act violation occurred. However, the additional documentation he provided was not persuasive and did not change our finding or recommendation.

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Document Details

Document Type
Technical Report
Publication Date
Dec 14, 2011
Accession Number
ADA555638

Entities

People

  • Patricia A. Marsh

Organizations

  • United States Department of Defense

Tags

Communities of Interest

  • C4I
  • Human Systems

DTIC Thesaurus Topics

  • Acquisition
  • Business Administration
  • Commerce
  • Contracts
  • Department Of Defense
  • Electronic Commerce
  • Financial Management
  • Governments
  • Information Systems
  • Military Operations
  • Money
  • Procurement
  • Program Management
  • Standards
  • United States
  • United States Central Command
  • United States Government

Readers

  • Defense Financial Management and Audit.
  • Government Contracting/Procurement.