Contract for Navy Galley, Scullery, and Laundry Equipment Repair

摘要

Congressman Owen B. Pickett requested this audit on behalf of a constituent. The constituent alleged that Advanced Systems Technology, Incorporated, used the incorrect standard industrial classification code to designate a type of work performed in the contract, and charged the Navy exorbitant prices for work performed. The complainant further alleged that the work performed outside the scope of the contract and the use of the incorrect standard industrial classification code forced small businesses in the Norfolk, Virginia, area to close. Our objectives were to determine whether the allegations were substantiated, to examine contract award and contract administration of contract N00l89-89-D-0373, as they relate to the Small Business Administration 8(a) program, to compare the contract statement of work to actual contractor performance, and to examine internal controls related to contracting procedures.