Contract for Purchase and Storage of Jet Fuel in Bahrain

NSIAD-88-50BR: Published: Dec 2, 1987. Publicly Released: Dec 16, 1987.

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Pursuant to a congressional request, GAO reviewed a Defense Fuel Supply Center (DFSC) sole-source contract award for the purchase and storage of jet fuel in Bahrain, focusing on: (1) DFSC procurement practices; (2) contract administration quality assurance inspections; and (3) storage fees.

GAO found that DFSC: (1) compromised quality assurance procedures to the extent of inadequately protecting the government's interest; (2) classified as politically sensitive information pertaining to justification for and approval of the sole-source negotiation; (3) did not follow the Defense Acquisition Regulation for publicizing contract information because it believed that Bahrain would not agree to the contract award under those conditions; (4) relied on the awardee's records for fuel quality and quantity information, since the original contract limited access and inspection by quality assurance representatives; and (5) modified the contract to allow normal quality control procedures after it determined that the contract was no longer politically sensitive. GAO also found that neither the Department of Defense nor the Department of State knew of any reason for the DFSC determination of political sensitivity.

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