April 17 2009 Copyright 2009 Business Research Services Inc. 301-229-5561 All rights reserved.

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Defense IG Cites Errors in Multiple Award Contracts

The Defense Department’s inspector general has urged mandatory training for DOD contracting personnel in how to use multiple award contracts.

When issuing task orders, the auditors said, contracting officers often failed to perform adequate analysis to ensure that the government was getting fair and reasonable prices. They also found contracting officers frequently favored incumbents when re-competing work.

After a review of the department’s use of governmentwide acquisition contracts operated by the National Institutes of Health, the auditors said, “DOD contracting officials were unaware of, improperly followed, or misinterpreted FAR and DFARS requirements and used poor judgment.”

The IG said contracting officers did not seem to know the rules for using the GWACs. For example, all vendors on NIH’s ECS III contract must be given fair opportunity to bid on all task orders; auditors found that rule was routinely violated. “This lack of FAR knowledge is a continuing problem at some of the sites we visited,” the auditors commented. They said some of the contracting officers had more than 20 years’ experience.

The director of defense procurement said training courses will be reviewed.

The IG recommended disciplinary action against several unnamed contracting officials at the Space and Naval Warfare Center Atlantic “who have repeatedly failed to follow acquisition regulations and continue to use incorrect award procedures when using multiple-award contracts.” The SPAWAR commanding officer agreed with the recommendation.


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