Army Procurement: Defense Logistics Agency's Administration of Contracts for Canteen Cups
NSIAD-88-16
Published: Nov 27, 1987. Publicly Released: Nov 27, 1987.
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Highlights
In response to a congressional request, GAO reviewed the Defense Logistics Agency's (DLA) practices and procedures for awarding and administering two contracts for canteen cups, to determine the contractor's: (1) capability to perform the contracts; and (2) compliance with the contract terms and conditions.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Defense Logistics Agency | The Director, DLA, should take action to protect the government's interest against further delays by S. Hanany Metal Craft. If Hanany cannot begin to comply with the delivery requirements of the contracts, DLA should terminate the contracts. |
Closed – Implemented
New delivery schedules were established for both contracts. A cure notice was issued on February 3, 1988. The first contract was terminated for default on July 8, 1988. The second contract was terminated for default on July 19, 1988.
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Topics
Army procurementBreach of contractContract extensionsContract oversightContract performanceContract terminationDepartment of Defense contractorsIrregular procurementPrice adjustmentsProcurement practices