Army Contracting Command-Redstone Arsenal's Management of Undefinitized Contractual Actions Could Be Improved

摘要

Public Law 99-591, section 908(b) requires the DoD Inspector General to periodically audit undefinitized contractual actions (UCAs) and submit a report to Congress. This is the fifth in a series of reports discussing DoD compliance with section 2326, title 10, United States Code. We reviewed 43 UCAs with a total not-to-exceed value of about $3.1 billion awarded by the Army Contracting Command-Redstone Arsenal (ACC-RSA) from FY 2004 through September 18, 2009, to determine whether ACC-RSA contracting personnel complied with the restrictions of the United States Code and whether they appropriately justified and definitized UCAs at reasonable prices. The DoD IG found that ACC-RSA contracting personnel did not consistently comply with statutory and DoD requirements for managing UCAs for 40 of the 43 UCAs that they reviewed. ACC- RSA contracting personnel did not do the following: definitize 16 UCAs within the 180-day time frame because of inadequate contractor proposals, prolonged negotiations, and changing Government requirements; reflect the contractor's reduced risk in the Government's negotiation position for 7 UCAs because they did not follow applicable guidance; adequately support their profit determination for 22 UCAs because they did not adequately document their consideration of reduced cost risk or the inputs used to create the profit objective; obligate funds within allowable limits for 2 UCAs because they miscalculated the obligation amount and decreased the not-to-exceed value without adjusting the amount obligated; obligate funds in accordance with the contractor's funding requirements for 7 UCAs because they did not take steps to comply with the Office of Defense Procurement and Acquisition Policy requirements for obligating funds; and properly justify using 3 UCAs because of poor acquisition planning.