The purpose of the “DoD IG Update” is to make the organization more transparent. Transparency is one of the ways we can demonstrate how we live up to our core values of accountability, integrity, efficiency, and excellence. If you have any questions or suggestions, please reply to IGUpdate@dodig.mil.
![Signature of Lynne M. Halbrooks](https://webarchive.library.unt.edu/web/20130221204036im_/http://www.dodig.mil/ELetter/images/halbrooks_signature_dark.jpg)
RECENTLY RELEASED REPORTS OF INTEREST (to view report, if available, please click on title)
Actions to Align Defense Contract Management Agency and Defense Contract Audit Agency Functions (Report No. DODIG-2013-015). This review evaluated actions taken by DoD officials to align the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA) functions by increasing the dollar thresholds a contractor proposal must meet before a contracting officer can request a DCAA audit. In addition, the review evaluated the factors DoD officials considered in making the decision as well as controls established to ensure the change in dollar thresholds adequately protects the interests of DoD and taxpayers. The review found that the Defense Procurement and Acquisition Policy decision halted DCAA audits of low-dollar proposals and may result in a potential loss of $249.1 million per year in return on investment from DCAA audits. The review also found that DCMA was not prepared to perform cost analysis of low-dollar proposals, could not report performance statistics related to their cost analysis, and was not positioned to replace the potential return on investment identified by DCAA prior to the threshold changes.
Accountability Was Missing for Government Property Procured on the Army’s Services Contract for Logistics Support of Stryker Vehicles (Report No. DODIG-2013-025). This audit determined that Program Management Office officials did not properly account for government property procured on the cost‑reimbursable services contract for logistics support of Stryker vehicles. The audit identified 19,365 different items, valued at about $892.3 million, stored at a warehouse that had never been recorded in Army property accountability and financial accounting systems. The audit also identified excess inventory of $72.7 million that could be disposed of or reutilized.
Naval Officials Reprised Against a Reserve Lieutenant. In October 2012, DoD IG substantiated that three Naval officials reprised against a lieutenant for making protected communications by taking multiple unfavorable personnel actions: removal, early demobilization, and an adverse evaluation report. DoD IG found that actions taken by the Naval officials led to non-promotion of the lieutenant and the requirement to meet a board of inquiry. DoD IG recommended the Secretary of the Navy take action to remove the adverse evaluation report and otherwise correct complainant’s file, and further recommended that the Navy consider taking appropriate action against the responsible management officials. This report is For Official Use Only.
DEFENSE CRIMINAL INVESTIGATIVE SERVICE HIGHLIGHTS (to view DoJ press release, if available, please click on title)
Former Army Major Sentenced in DoD Contract Bribery Scheme As part of a continuing investigation into corrupt contracting at Camp Arifjan, Kuwait, on November 13, 2012, James Momon Jr. was sentenced to 18 months in prison and was ordered to pay $5.8 million in restitution jointly and severally with his co-defendants. Momon pleaded guilty to assisting in awarding contracts in return for accepting bribes from DoD contracting firms that supplied bottled water and other goods and services. This is a joint investigation with DCIS, Army Criminal Investigation Command, IRS-Criminal Investigation, the Special Inspector General for Iraqi Reconstruction, and the FBI.
Iranian National Charged With Attempting to Export Military Aircraft Parts to Iran On November 15, 2012, Alireza Moazami Goudarzi was charged with violating the International Emergency Economic Powers Act, conspiring to and attempting to violate the Arms Export Control Act, conspiring to commit money laundering, and two counts of money laundering. According to the indictment, Goudarzi attempted to purchase aircraft parts from an undercover agent and offered to pay more than market value because of the embargo on sending these parts to Iran. Goudarzi is currently in Malaysia awaiting extradition. This was a joint investigation with DCIS, ICE-Homeland Security Investigations, and the Department of Commerce.
RECENTLY ANNOUNCED PROJECTS (to view the announcement letters, click on the title)
Audit of the Shindand Training Contracts. The objective of this audit is to determine whether pilot training contracts for fixed-wing and rotary-wing aircraft at Shindand Air Base, an air base for the Afghanistan Air Force are properly managed and administered in accordance with federal and DoD requirements. This audit will also determine whether contract requirements are being met and evaluate the effectiveness of contract oversight.
Audit of Defense Advanced Research Projects Agency's (DARPA) Contract Awards for Disk Rotor Research and Development. The objective of this audit is to determine whether DARPA officials complied with federal laws and DoD guidance when awarding contracts to Boeing for disk-rotor research and development and whether the award conflicted with existing patents for disk-rotor technology.
Examination of Army Management's Assertion for Existence and Completeness of Operating Materials and Supplies (Quick Win Assets). The objective of this examination is to determine whether the Army accurately accounted for the existence and completeness of missiles as of September 30, 2012. These assets consist of the Hellfire; Javelin; and Tube-launched, Optically-tracked, Wire-guided (TOW) missiles. The “quick win assets” are a component of the Operating Materials and Supplies line item reported in the Army’s financial statement.
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