Report on Review of Army Decision Not to Withhold Funds on the Logistics Civil Augmentation Program III Contract

摘要

In response to a Senate Armed Services Committee request dated December 12, 2008, we reviewed the Army's decision not to withhold funds on undefinitized task orders under the Logistics Civil Augmentation Program (LOGCAP) III contract, as Federal Acquisition Regulation (FAR) clause 52.216-26 requires. We focused our review on the following five questions raised in the review request: (1) Were Army contracting officials responsible for the LOGCAP contract in August 2004 directed by their chain of command to reverse a decision to withhold funds from a DoD contractor because the contractor failed to provide data needed to substantiate contract costs; (2) Did anyone in the Army chain of command discuss the withhold issue with contractor officials in August 2004, and did any such discussions influence the Army's position on withholding funds from the contractor; (3) Was the Army's decision not to withhold funds from the contractor in August 2004 consistent with the requirements of the FAR; (4) Was the removal of Army contracting officials responsible for the LOGCAP contract in August 2004 the result of the contracting officials. efforts to withhold funds from the contractor; (5) Were Army officials that the Senate Armed Services Committee staff interviewed truthful in their description of these events. We also performed a preliminary review of the Army's contract with Resource Consultants, Inc., which provided cost and price analysis services in support of the Logistics Civil Augmentation Program III contract. Based on our preliminary review, we have initiated a full review of the Resource Consultants, Inc., contract and we will provide the results in a separate report. See Appendix A for details regarding our scope and methodology and prior coverage.