Vendor Payments: Inadequate Management Oversight Hampers the Navy's Ability to Effectively Manage Its Telecommunication Program

In March 2013, the Navy issued the Navy Unified Capabilities Implementation Plan, which includes a strategic management framework for, among other things, managing the acquisition and life cycle costs of telecommunication services. The Navy Unified Capabilities Implementation Plan also identifies the specific roles and responsibilities of the Navy commands for maintaining cost and inventory information on its telecommunication services as well as determining existing and future requirements for current and potential users. With the implementation of this strategic management framework, the Navy should have reasonable assurance that it has strengthened its ability to acquire telecommunication services more effectively and efficiently.

In a November 29, 2007, policy memorandum, the Deputy CNO directed the consolidation of command requirements for cellular and other telecommunication services. The policy memorandum states that, upon consolidation, the requirements are to be submitted through the command's servicing contract office and procured through nationwide Department of the Navy Multiple Award wireless contracts. In addition, the policy memorandum directs all Navy commands to conduct a cost/benefit analysis to ensure the greatest value at the lowest cost.

In June 2012, the CNO issued OPNAV Instruction 2060.8A that directed the formulation of a central management infrastructure to provide oversight, contracting services, validation, standards and internal controls for telecommunication services. OPNAV Instruction 2060.8A also instructs Navy to comply with DOD policy that requires DOD components to plan, program, and budget for telecommunication services using the guidance in the Unified Capabilities Master Plan, dated October 2011. The Unified Capabilities Master Plan provides the DOD components, including Navy, with a strategic management framework based on commonly used commercial practices, such as conducting spend analyses and competing and negotiating pricing discounts based on overall volume, to strengthen the DOD component's bargaining position in acquiring telecommunication services.

In June 2012, the CNO issued OPNAV Instruction 2060.8A that directed the formulation of a central management infrastructure to provide oversight, contracting services, validation, standards and internal controls for telecommunication services. OPNAV Instruction 2060.8A also instructs Navy to comply with DOD policy that requires DOD components to submit requests for telecommunication services to the Defense Information Systems Agency (DISA). DISA is responsible for reviewing requests, determining the most effective solution set, and approving the request. In addition, DOD policy requires DOD components to plan, program, and budget for telecommunication services using the guidance in the Unified Capabilities Master Plan developed by DISA. The Unified Capabilities Master Plan provides the DOD components with a documented operational framework based on the work already accomplished by DISA through laboratory and pilot testing of products and services in the Unified Capabilities environment, which includes telecommunications. The plan contributes to DOD's efforts to gain visibility over spending and revise business processes to enable DOD components to leverage its buying power. With these actions, Navy should have reasonable assurance that its future requirements and acquisitions of telecommunication services are met in a cost-effective manner.

In March 2012, the Department of the Navy's Chief Information Officer issued a policy memorandum that requires all Navy commands (including Navy units) to maintain an accurate and up-to-date inventory of all government-provided commercial mobile services. In addition, the policy memorandum instructs Navy commands to comply with Navy's existing policy requiring the use of telecommunication expense management tools for inventory tracking and invoice validation within the telecommunication services environment. With the issuance of this policy memorandum, the Navy should have reasonable assurance that existing policies are enforced and that units are maintaining an inventory of telecommunication equipment and services.

In June 2012, the CNO issued OPNAV Instruction 2060.8A to establish policy governing the management, administration, and validation of base telecommunications within the Navy. OPNAV Instruction 2060.8A instructs Navy to comply with DOD policy that establishes DISA's responsibility to review DOD component requests for, among other things, telecommunication services, to determine the most effective and economical telecommunications solution set, and approve DOD component request. According to OPNAV Instruction 2060.8A, this DOD policy directs the formulation of a central management infrastructure to provide oversight, contracting services, validation, standards and internal controls for base telecommunications. With this action, Navy has provided reasonable assurance that it is supporting DISA's efforts to track acquisitions of telecommunications services throughout DOD, trends in usage, and the cost of those services.

On March 7, 2005, the Navy issued the Department of the Navy Acquisition Policy on Mobile Phone and Data Equipment and Services. This policy memo states that only the Navy's centralized contracts shall be used to obtain wireless services. On September 2, 2005 the Navy issued the Department of the Navy Policy for Issuance, Use and Management of Government-provided Mobile Phone, Data Equipment and Services, and Calling Cards. This policy memo provides guidance governing the issuance, use and management of government-provided mobile phones, data equipment and services, and calling cards--including required periodic assessments of cell phone usage to determine if the plan packages provide the most cost-effective means to satisfy the Navy's usage requirements.

On September 2, 2005 the Navy issued the Department of the Navy Policy for Issuance, Use and Management of Government-provided Mobile Phone, Data Equipment and Services, and Calling Cards. This policy memo provides guidance governing the issuance, use and management of government-provided mobile phones, data equipment and services, and calling cards--including guidance on accountability, the proper review of invoices, and the prohibition of sharing calling cards.

In 2004, the Navy has directed Naval Commands and base communications offices to periodically review, validate, and inventory various telecommunications requirements for compilation into a central database repository. (Naval Message 04-04 051935Z and 01-04 26142Z Aug 04). The required periodic reviews are to be conducted to ensure policies are being enforced, processes are kept current, and users' telecommunications needs are being met.

In 2004, the Navy directed Naval Commands and base communications offices to review long distance call use and institute procedures for control and prompts certification of monthly billing. (Naval Message 04-04 051935Z and 01-04 26142Z Aug 04)

In 2004, the Navy directed commands and base communications offices to review, validate, and inventory assigned calling cards, and take immediate action to cancel unaccounted for cards. Commands were further directed to assess the need for calling cards and cancel cards that are not required. Base communications offices were directed to audit monthly calling card usage and immediately report anomalies to commands and activities(Naval Message 04-04 051935Z and 01-04 26142Z Aug 04).