El Salvador: Limited Use of U.S. Firms in Military Aid Construction
NSIAD-89-132
Published: Jul 12, 1989. Publicly Released: Jul 12, 1989.
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Highlights
Pursuant to a congressional request, GAO reviewed Military Assistance Program (MAP)-funded construction contracts the Army Corps of Engineers awarded in El Salvador, focusing on the legality, propriety, and effects on U.S. firms of approved offshore procurement waivers, which opened competition to Salvadoran firms.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should direct the Director, DSAA, to establish guidance and criteria for reviewing and approving offshore procurement determinations, including documenting its assessment of the impact on labor surplus areas before making offshore procurement determination decisions. |
Closed – Implemented
DSAA revised its security assistance regulations, which established guidance and criteria for reviewing and approving offshore procurement determinations, including specifying how to assess the impact on labor surplus areas before making offshore procurement determination decisions.
|
| Department of Defense | The Secretary of Defense should direct the Director, DSAA, to provide more specificity in each offshore procurement determination, including, at a minimum, the scope of work, monetary ceilings, and approximate time frames to provide clear limitations on the extent that a determination can be used. |
Closed – Not Implemented
DSAA does not concur with the recommendation.
|
| Department of Defense | The Secretary of Defense should direct the Director, DSAA, to establish a mechanism to periodically inform the Departments of State and Treasury of significant changes in the scope of work and modifications to previously approved offshore procurement determinations. |
Closed – Implemented
DSAA established in its new guidance on offshore procurement determinations a mechanism to inform State and Treasury of significant changes in the scope of work (if the project exceeds that originally anticipated by 50 percent or $1 million, whichever is greater) to previously approved determinations.
|
| Corps of Engineers | The Commanding General, Army Corps of Engineers, should work with DCAA to ensure that contracts awarded for construction in El Salvador are fully audited in accordance with pertinent DOD regulations. |
Closed – Implemented
The Corps agreed to work with DCAA on a case-by-case basis to ensure that contracts awarded for construction in El Salvador are audited in accordance with DOD regulations and that DCAA receives the necessary data for the audit. Corps contracting officers will require contractors to provide complete cost or pricing data as required by the contract clauses and DOD regulations.
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