IG Monthly Newsletter

April 2011

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.

Gordon S. Heddell

UPCOMING REPORTS

Significant reports expected to be released within the next 30 days include:

The Marine Corps Inventory of Small Arms Generally Accurate but Improvements Needed for Related Guidance and Training – This audit reviews the accuracy of the Marine Corps Small Arms Registry data and specifically reviews controls over weapons held at activities relocating as part of the Defense Posture Review Initiative.

Consistent Use of Supply Support Activities Could Increase Efficiency of Equipment Drawdown from Iraq – The audit reviews whether DoD is effectively managing operations at the Supply Support Activities and Central Receiving and Shipping Points in Iraq. The audit will outline the process for disposition of equipment leaving Iraq and determine whether that process ensures timely accountability, visibility, and redistribution of the equipment to efficiently and effectively meet the needs of DoD.

Report of the Independent Engineering Assessment of the Transportation Management Plan and the Final Environmental Assessment Implementation of BRAC 133 – In response to a requirement in the FY 2011 National Defense Authorization Act, the DoD IG initiated a detailed independent engineering assessment of the sufficiency of the Secretary of Army's Transportation Management Plan for BRAC 133 at the Mark Center in Alexandria, VA, dated July 2010 (BRAC 133 TMP) and the Final Environmental Assessment: Implementation of 2005 Base Realignment and Closure Recommendation 133, dated July 2008 (BRAC 133 EA).

RECENTLY RELEASED REPORTS OF INTEREST

"2010 Evaluation of the DoD Federal Voting Assistance Program" (Report SPO-2011-006) – The assessment evaluates the effectiveness of DoD voting assistance programs and the level of compliance with voting assistance programs during 2010 as reported by each of the Service Inspectors General. To see the report, click here.

"Assessment of Allegations Concerning Traumatic Brain Injury Research Integrity in Iraq" (Report SPO-2011-005) - The assessment examined allegations made to the Defense Hotline concerning traumatic brain injury research integrity in Iraq. Specifically, whether DoD guidance regarding the performance of research on human subjects was violated, and whether research misconduct occurred in a DoD approved clinical research trial evaluating the treatment of mild traumatic brain injury. The full report is For Official Use Only, but to see the publicly releasable “Results in Brief,” click here. A redacted version of this report will be posted as soon as it is available.

“Assessment of DOD Wounded Warrior Matters - Fort Sam Houston” (Report SPO-2011-004) - This assessment, the first in a series of reports to evaluate the policies and processes in place to assist wounded warriors in their return to duty status or transition to civilian life, reviewed the Warrior Transition Unit at Ft. Sam Houston, Texas. Ft. Sam Houston has established a number of noteworthy practices for supporting the comprehensive care, healing, and transition of Warriors, including developing a High-Interest Patient Database to help with the care and risk management of complex patients. However, a number of challenges remain, including: developing an operational definition of a “successful” end-state for a Warrior, including measurable criteria and determining case loads by the complexity of Warriors’ care and needs, rather than by numerical staffing ratios. To see the report, click here.

“Assessment of U.S. Government Efforts to Train, Equip and Mentor the Expanded Afghan National Police” (Report SPO-2011-003) – This assessment evaluated the effectiveness and implementation of U.S. and International Security Assistance Force (ISAF) efforts to train, equip, and mentor the Afghan National Police (ANP). ISAF has established ANP development as a priority objective and is implementing an aggressive strategy that has achieved progress in increasing the personnel recruitment rate and developing logistics infrastructure. However, ISAF needs to institutionalize the ANP force development/coordination process between its subordinate commands and document the ANP force size necessary to execute the Counter-insurgency strategy. In addition the untrained ANP personnel, estimated at 40 percent, threaten the viability of the ANP. To see the report, click here.

“External Quality Control Review of the Defense Logistics Agency Audit” (Report No. D-2011-6-005) – This is a peer review of the system of quality control for the audit organization of the Defense Logistics Agency in effect for the period ending May 31, 2010. As a result of this review, a fail opinion was issued on its system of quality control. To see the report, click here.

"Competition Issues and Inherently Governmental Functions Performed by Contractor Employees on Contracts to Supply Fuel to U.S. Troops in Iraq" (Report D-2011-049) – This audit determined that Defense Logistics Agency energy contracting officers did not perform an adequate proposal analysis for three of four contracts valued at about $2.7 billion. The contracts were awarded to the International Oil Trading Company (IOTC) to supply fuel to U.S. troops in Iraq. DLA Energy paid IOTC about $160 to $204 million (or 6 to 7 percent) more for fuel than could be supported by price or cost analysis. The full report is For Official Use Only, but to see the publicly releasable “Results in Brief,” click here . A redacted version of this report will be posted as soon as it is available.

DEFENSE CRIMINAL INVESTIGATIVE SERVICE HIGHLIGHTS

DCIS Badge Former Army Major and Wife Convicted in Bribery Scheme Related to Defense Contracts to Support Iraq War
Two more people were convicted recently in connection with a bribery scheme at Camp Arifjan, Kuwait, investigated by a multi-agency task force that includes the Defense Criminal Investigative Service. A federal jury in Decatur, Alabama, convicted Eddie Pressley, a former U.S. Army major, and his wife, Eurica Pressley, on 22 counts in connection with a bribery and money laundering scheme related to defense contracts awarded in support of Operation Iraqi Freedom. To date, 16 individuals have pleaded guilty or have been convicted in connection with this ongoing corruption investigation. For more information, click here.

Munitions Supplier Sentenced On Defense Procurement Fraud And Lying To Army On Government Munitions Contract
On March 23, 2011, Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, along with senior representatives of the Defense Criminal Investigative Service, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, Provost Marshal General of the Army, U.S. Army Criminal Investigation Command, and the Defense Contract Audit Agency, announced the sentencing of Ralph Merrill, of North Salt Lake, Utah, on charges of defense procurement fraud. U.S. District Court Judge Joan A. Lenard sentenced Merrill to 48 months imprisonment on charges of conspiracy, major fraud against the United States, and wire fraud. For more information, click here.

RECENTLY ANNOUNCED PROJECTS

U.S. Special Operations Command's Use of Contractors in Human Intelligence (HUMINT) Activities
The objective is to evaluate how the U.S. Special Operations Command used contractors to conduct or support HUMINT and related activities and to ensure compliance with applicable DoD Directives and Regulations.

Audit of DoD Countermine and Improvised Explosive Device Defeat Systems Contracts - Vehicle Optics Sensor System
Auditors will determine whether the Joint Improvised Explosive Device Defeat Organization (JIEDDO) and Army procurement efforts for the Vehicle Optics Sensor System, used on RG-31 and Joint Explosive Ordnance Disposal Rapid Response Vehicles in Iraq and Afghanistan, were developed, contracted, and managed in accordance with regulations.

Audit of Vulnerability Assessments for the Defense Industrial Base
The objective is to determine whether the Department of Defense is performing Defense Industrial Base vulnerability assessments and risk assessments to ensure critical assets are properly protected and whether mitigation plans are in place to cover critical assets.

Assessment of U.S. Government and Coalition Efforts to Develop the Logistics Sustainment Capability of the Afghan National Army
The objectives of this assessment are to determine whether the planning and operational implementation of efforts by U.S. and Coalition forces to train, advise, and assist in the development of an enduring logistics sustainability capability for the Afghan National Army is effective.