Survey of Base Level Procurement Activities at the Marine Corps Base, Camp Pendleton

A review was made of a contract issued by Camp Pendleton for operating a motor vehicle parts store. The contract was awarded for a contractor-operated, on base, motor vehicle parts store for four 1-year option periods, and the contract was in its fourth year with one option year remaining. The survey disclosed that controls in administering the motor vehicle parts store contract needed strengthening. Base operating procedures require that the contractor issue parts to only those individuals whose names appear on an authorized list, and that foremen sign repair orders before maintenance personnel get the parts from the contractor. However, the contractor did not have a list of personnel authorized to obtain parts, and people were getting parts without the foremen's signatures. It was noted that there was no verification of the validity of the billings; hence, the contractor could easily bill and be paid for parts not issued. It was recommended that operating procedures and other controls be implemented in order to reduce the potential for misuse and overpayments. It was also advised that only credit cards be used to obtain parts, that a separate billing should be received from the contractor for each transaction, and that the billings be verified by comparison against repair orders. An internal review should be performed to determine whether past transactions and payments under the contract were appropriate.