Requirements for and Administration of the Ferroalloy Upgrade Program

摘要

The ferroalloy upgrade program (the Program) was established on November 29, 1982. The stated objectives of the Program were to lessen the amount of stockpiled ores needing conversion to ferroalloys during times of national emergency and to help maintain existing U.S. ferroalloy furnace and processing capability. The Program was limited to chromite and manganese ores. The two contractors doing the upgrade work were reimbursed a total of $457 million in commodities, cash, and payments in kind, from January 1, 1984, through July 30,1992. The audit was requested by the Deputy Assistant Secretary of Defense (Production Resources), Office of the Assistant Secretary of Defense (Economic Security), formerly the Office of the Assistant Secretary of Defense (Production and Logistics). The audit evaluated the methodology and procedures for awarding and administering contracts for the Program and assessed the implementation of the internal management controls as they pertained to the Program. In addition, the audit evaluated the need to continue stockpiling ferrochromium and ferromanganese in the National Defense Stockpile (the Stockpile).