Laser Marker Procurement

NSIAD-92-115R: Published: Feb 25, 1992. Publicly Released: Feb 25, 1992.

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In response to a congressional request, GAO reviewed the Department of Defense (DOD) and Navy Inspectors Generals' (IG) investigations into waste, fraud, and abuse in the procurement of a laser marking machine at a naval shipyard, focusing on whether: (1) IG properly conducted the investigations; (2) the Navy had taken corrective actions to prevent a recurrence of similar problems; and (3) the Navy had taken disciplinary actions against those found to have been negligent in the procurement of the laser marking machine. GAO noted that: (1) despite initial shortcomings, IG properly conducted the investigations; (2) IG found that the Navy mismanaged the procurement, and the responsible department at the shipyard had exclusive control of requisitioning, contracting and inspecting functions; and (3) due to the mismanagement, the Navy divided contracting function authorities among different departments to ensure that the shipyard procured equipment that met performance expectations. GAO noted that the Navy decided not to discipline the current Director responsible for mismanaging the laser marker procurement, since: (1) the Director's predecessor was also responsible for mismanagement; (2) disciplinary actions were not a necessary element of remedial action; and (3) no evidence existed which proved that the Director willfully attempted to misrepresent the deficient nature of the laser marker procurement.

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