IG Raps GovWorks, National Business Center The Defense Department’s inspector general has recommended that DOD stop using the Interior Department’s interagency contracting shops, according to draft audit reports obtained by the Washington Post. The newspaper said audits by the Defense and Interior IGs found evidence of violations of laws and rules in contracts handled by Interior’s GovWorks and its National Business Center at Fort Huachuca, AZ. After examining 49 contracts, the investigators said 61% showed evidence of “illegal contracts, ill advised contracts, and various failings of contract administration procedures.” They said DOD paid fees of up to 4% of the contract’s value to the Interior shops. Shay Assad, director of defense procurement and acquisition policy, told the Post that the draft audit reports were under review. Interior officials said some of the irregularities reported in the audits have been corrected. In one case, the report said, the Defense Department turned to GovWorks to lease office space in Northern Virginia for an intelligence unit. GovWorks in turn awarded a $100 million sole-source contract to a firm that would lease and manage the space. Auditors said the lease was illegal because it circumvented several laws regarding leased space. By law, GSA handles most government leases. The Defense Department replied that the lease was proper, but the IG referred the matter for possible criminal investigation. In another instance, Interior’s Fort Huachuca center used an online buying program called the Open Market Corridor. The auditors found that some of the vendors on the Corridor “appeared to be Government employees or firms that appeared to be affiliated with Government employees.” Senior Interior officials said they were not aware of the existence of the Open Market Corridor, and it has since been shut down, according to the report.