Contract Management of Joint Logistics Integrator Services in Support of Mine Resistant Ambush Protected Vehicles Needs Improvement

摘要

This is the third report in a series on maintenance support contracts for Mine Resistant Ambush Protected (MRAP) vehicles. We reviewed and evaluated the Army's award and administration of the Joint Logistics Integrator (JLI) contracts. The initial contract, awarded in 2007, was valued at $193.4 million, and the follow-on contract, awarded in 2009, was valued at $285.5 million. What We Found Army Contracting Command (ACC)-Warren and Joint Program Office (JPO) MRAP officials (the officials) inadequately planned for the follow- on contract award and did not effectively administer the contract. The officials inappropriately allowed the contractor to perform inherently governmental functions, such as disciplining DoD employees, and to have organizational conflicts of interest, such as helping prepare requirements for the follow-on contract that the contractor bid on and won. This occurred because the officials only cursorily addressed statutory and regulatory requirements for preventing performance of inherently governmental functions and organizational conflict of interests, and only one Government employee was assigned overseas to the task of overseeing a multimillion dollar contract in three different foreign countries. This greatly increased the risk for potential waste or abuse on the contract. In addition, the contracting officer did not adequately support the need to use a time-and material type of contract for the follow-on JLI effort, valued at $285.5 million. ACC-Warren officials did not use data from the initial contract to help structure appropriate portions of the contract as fixed price. This occurred because ACC-Warren officials stated that they could not estimate the extent or duration of the work needed due to constant changes in mission need and work performed. Consequently, the contracting officer awarded a contract type which provides no incentive to the contractor for cost control or labor efficiency and significantly increased risk to DoD.