ACQUISITIONS: Treasury Franchise Fund Needs to Improve Compliance with Department of Defense Procurement Requirements. Audit Report

摘要

This report presents the results of an audit we conducted separately, but in coordination with the Department of Defense (DoD) Office of Inspector General (OIG), of DoD procurements made through the Department of the Treasury (Treasury) franchise fund. Our audit was required by the National Defense Authorization Act (NDAA) for Fiscal Year 2006.1 During fiscal year 2005, FedSource, a component of the Treasury franchise fund and the principal focus of our audit, issued approximately 19,700 contract actions consisting of task orders and modifications on behalf of DoD valued at $405.1 million. We initiated our audit in August 2005, shortly after the Government Accountability Office (GAO) issued a report that was critical of FedSource contracting assistance to DoD.2 In brief, GAO reported that FedSource (1) generally did not ensure competition for work, (2) did not conduct and document price analyses, (3) sometimes paid contractors higher prices for services than were justified, and (4) relied on administrative personnel who were not trained as contracting officers to ensure that potential contractors had opportunities to submit offers. Our objective was to determine whether Treasurys procurement policies, procedures, and internal controls applicable to the procurement of property products and services on behalf of DoD, and the manner in which they are administered, were adequate to ensure Treasurys compliance with the laws and regulations that apply to procurements of property and services made on behalf of DoD. To accomplish this objective, we reviewed a sample of 64 task orders at three FedSource centers Los Angeles, CA; St. Louis, MO; and Baltimore, MD. We also reviewed contracts and blanket purchase agreements at the Administrative Resource Center (ARC), another component of the Treasury franchise fund, located at the Bureau of the Public Debt in Parkersburg, West Virginia. Our objective, scope, and methodology are described in more detail in appendix.