Quick-Reaction Report on Termination of Procurement of Coveralls (Project No. 1LE-0067.02)

摘要

As part of our Audit of Contract Terminations at DoD Wholesale Inventory Control Activities (Project No. 1LE-0067), we reviewed the termination decisions by the Defense Personnel Support Center (DPSC) on procurements of Toxicological Agent Protective (TAP) coveralls. One of the overall objective of the audit was to determine whether contracts were curtailed in response to decreased requirements for material stocked in the DoD wholesale supply system. Our review of the decision not to terminate excessive quantities of TAP coveralls showed that the decision was not adequately supported. Terminating the excessive quantities on Contract DLA100-91-C-0349 would allow the Defense Logistics Agency to avoid costs associated with buying and holding about $2.8 million of coveralls that exceed reasonable inventory levels and assist in the accomplishment of the DoD Inventory Reduction Program.