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Fort Monmouth Procurement Activities: Inappropriate Contract Actions May Increase Government Costs

PLRD-81-14 Published: May 12, 1981. Publicly Released: May 12, 1981.
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Highlights

GAO was asked to review a contract awarded by the Army Communications Research and Development Command (CORADCOM), Fort Monmouth, New Jersey, for the Joint Interface Test System and the entire scope of the Army Communications and Electronics Material Readiness Command (CERCOM) acquisition activity at Fort Monmouth. GAO restricted the review to: (1) assessing whether CERCOM took followup actions designed to correct deficiencies noted in an Army report and assessing the adequacy of these actions; and (2) reviewing the award by CERCOM, CORADCOM, and the Army Electronics Research and Development Command (ERADCOM).

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of the Army The Secretary of the Army should direct the Army Material Development and Readiness Command to have its subordinate command, the Army Communications and Electronics Material Readiness Command (CERCOM), promptly review all remaining corrective actions to ensure that the CERCOM implementation has, in fact, corrected the problems.
Closed
Please call 202/512-6100 for additional information.
Department of the Army The Secretary of the Army should direct the Army Material Development and Readiness Command to have its subordinate commands, the Army Communications Research and Development Command and the Army Electronics Research and Development Command, emphasize to contracting officers their responsibilities to protect the Government's interests when (1) contractors either offer cost sharing arrangements or agree to absorb costs; or (2) auditors report that offerors' proposed overhead costs appear to be too low. The Legal Division and Board of Awards should withhold approval until these concerns are properly addressed.
Closed
Please call 202/512-6100 for additional information.

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Army procurementContract costsMilitary communicationProcurement practicesElectronic data processingIT acquisitionsBid proposalsProcurementMilitary forcesGovernment procurement