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IG Faults Interagency Contracting Playing a familiar tune, the Defense Department’s inspector general again faulted DOD for its use of interagency contracting vehicles, finding that many purchases through the Veterans Affairs Department violated acquisition and procurement regulations. The latest report is one in a series of audits of DOD’s interagency contracting. The IG previously found similar problems with the department’s procurements through GSA, Interior, Treasury, NASA and the National Institutes of Health. In response, Shay Assad, director of defense procurement and acquisition policy, said the Defense Acquisition University will begin offering new training courses on interagency contracting. Assad said he will issue new policy guidance on using non-DOD contracts. The IG said Defense spent $373 million through VA in fiscal 2006. Auditors found many purchases “were either hastily planned or improperly administered.” They also faulted contract administration and oversight. Much of the money went for medical supplies and services. But the auditors said the Army, Navy and Air Force used different approaches in buying those goods and services. They recommended that the military departments adopt standard practices for medical support to leverage their buying power. VA contracting officials also came in for criticism. The IG said a majority of the procurements examined by auditors lacked proper price reasonableness determinations or justifications for sole-source awards.
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