Implementation of Most Efficient Organization for the Defense Finance and Accounting Service Commissary Vendor Payment Function

摘要

This audit is part of a larger review of Defense agency commercial activities programs and Office of Management and Budget (0MB) Circular No. A-76 competitive sourcing studies. The Defense Finance and Accounting Service (DFAS) announced the competitive sourcing study of the commissary vendor payment function in November 1995 and completed a study of 165 lull-time equivalent personnel in September 1997. On October 1, 1997, DFAS announced that it would implement the Government's most efficient organization (MEO) for in-house performance by April 1, 1998. The in-house MEO was 75 full-time equivalent personnel and the 5-year Government estimate to perform the function was $ 12.4 million. This was about $5 million less (29 percent) than the best value private sector bid. We subsequently reviewed documentation for the commissary vendor pay study and reported in Inspector General, DoD, Report No. 99-208, 'Audit of the Defense Finance and Accounting Service Commercial Activities Program', July 8, 1999, that available documentation for the study was not adequate to verify that the management plan reasonably established the Government's ability to perform the performance work statement with the resources provided by the MEO. DFAS improved internal controls over future studies, but did not strengthen controls over implementation of the MEO for the vendor payment study. The 0MB requested the post-implementation review of the MEO because of the deficiencies in the study noted in our prior report. We conducted this audit from December 1999 through June 2000.