DOD watchdog to audit sole-source depot maintenance contracts

摘要

The Defense Department inspector general intends to audit sole-source depot maintenance contracts performed at contractor facilities to determine whether the military has negotiated "fair and reasonable" prices. The audit was directed by the Fiscal Year 2020 National Defense Authorization Act, according to an IG notice. "We will perform the audit at contracting offices within the U.S. Army Materiel Command, Naval Sea Systems Command, Naval Supply Systems Command, Naval Information Warfare Systems Command, Air Force Life Cycle Management Center, Air Force Sustainment Center, and the Missile Defense Agency that have awarded sole-source contracts for depot maintenance," IG said. A House and Senate conference report accompanying the FY-20 NDAA said the audit should "determine if there has been any excess profit or cost escalation with respect to sole-source contracts relating to commercial depot maintenance, to include contracts for parts, supplies, equipment, and maintenance services." The Defense Department and Congress have sought to crack down on a variety of potential pricing abuses since a widely publicized controversy with TransDigm, a company mat came under scrutiny last year when the IG found it made $16.1 million in excess profit for 46 parts sold to the Defense Logistics Agency and the Army for $26.2 million between 2015 and 2017.