OMB Circular A-76: Expected Savings Are Not Being Realized in Ft. Sill's Logistics Contract
GGD-91-33
Published: Feb 11, 1991. Publicly Released: Feb 15, 1991.
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Highlights
Pursuant to a congressional request, GAO reviewed an Army contract for logistics support services at Fort Sill, Oklahoma, focusing on: (1) whether the Army realized the estimated savings from contracting its requirements; and (2) contractor performance.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of the Army | In order that the Army gets the service it contracted for and at an advantageous cost, the Secretary of the Army should direct the Commander, U.S. Army Training and Doctrine Command (TRADOC), to ensure that Fort Sill's contracting officer stops using the current contract administration approach of paying award fees for minimum and below minimum performance. |
Closed – Implemented
In a letter of March 1991, the Assistant Secretary of the Army for Research, Development, and Acquisition instructed the Commander, TRADOC, to ensure that the Ft. Sill contracting officer does not pay award fees for minimum or below minimum performance.
|
| Department of the Army | In order that the Army gets the service it contracted for and at an advantageous cost, the Secretary of the Army should direct the Commander, TRADOC, to ensure that Fort Sill's contracting officer requires the contractor to provide, within a specific time frame, a plan that will demonstrate how it proposes to meet minimum performance standards. |
Closed – Implemented
In April 1991, TRADOC directed Ft. Sill's Director of Contracting to take action necessary to ensure that the contracting officer exercises all contractual remedies available to ensure contractor compliance with the performance requirements of the Northrop contract.
|
| Department of the Army | In order that the Army gets the service it contracted for and at an advantageous cost, the Secretary of the Army should direct the Commander, TRADOC, to establish oversight of Fort Sill's logistics contract and ensure that the award fee provisions of other TRADOC cost-plus-award-fee contracts are being properly administered. |
Closed – Implemented
In a March 1991 letter, the Assistant Secretary of the Army for Research, Development, and Acquisition advised TRADOC to intensify oversight of Ft. Sill's logistics contract and ensure that fee contracts are properly administered.
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Army procurementComparative analysisContract administrationContract costsContract oversightContract performanceCost effectiveness analysisCost overrunsCost plus award fee contractsMonitoringPrivatization