| From the DoD IG ... | May 2012 |
 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.
 UPCOMING REPORTS Significant reports expected to be released within the next 30 days include:
DoD’s FY 2010 Purchases Made Through the Department of the Interior (Report No. DODIG-2012-072). This audit generally found that DOI contracting and resource management officials complied with laws, policies, and procedures. However, improvements can still be realized in other contracting areas. The audit found: contracting officials did not support that the prices DoD paid were fair and reasonable for 24 contract actions valued at $72 million; did not adequately compete two contract actions valued at $1.3 million; and did not support the use of sole-source contracts for three contract actions valued at $1.3 million. Auditors also found that requesting officials did not perform adequate reviews of contractor cost proposals for 31 contract actions valued at $77.1 million, and did not prepare adequate Government cost estimates for 38 contract actions valued at 84.1 million. Action Is Needed to Improve the Completeness and Accuracy of Defense Enrollment Eligibility Reporting System (DEERS) Beneficiary Data (Report No. DODIG-2012-069). This audit found that the Defense Manpower Data Center lacked controls to identify when Real-time Automated Personnel Identification System personnel failed to maintain supporting documentation. Therefore, DoD lacked certainty that only eligible beneficiaries were enrolled in the Defense Enrollment Eligibility Reporting System (DEERS) and issued military identification cards. The unsupported and inaccurate data adversely affected the integrity of the DoD process for issuing military identification cards. Further, ineligible beneficiaries could obtain unauthorized access to health care benefits and, conceivably, to Government facilities and other privileges. Assessment of DoD Wounded Warrior Matters – Camp Lejeune, NC (DODIG-2012-067). This assessment, the third in a series of such assessments, found needs for: improved timeliness in procedures and training for the development of each Warrior's Comprehensive Transition Plan; assurance that Warrior recovery and transition plans are individually tailored and effective; policies to ensure Warriors can be uniquely identified for DoD TRICARE access to specialized care tracking; improved process to decrease Warriors' potential misuse and/or abuse of prescription medications; and updated command policies and procedures for management of the Warrior use of medications.
On April 23, 2012, ATK agreed to pay $36,967,160 to settle a qui tam lawsuit that alleged ATK sold dangerous and defective illumination flares to the Army and Air Force. The flares burn in excess of 3,000 degrees Fahrenheit for over five minutes and are used for nighttime combat, covert, and search and rescue operations, and have been used extensively by American forces in Iraq and Afghanistan in the global war on terror. The government alleged ATK knowingly delivered flares incapable of withstanding a 10-foot drop test without exploding or igniting, as required by the contract specifications, when it submitted claims for payment. Defense Criminal Investigative Service worked jointly with Air Force Office of Special Investigation, Navy Naval Criminal Investigative Service, and Army Criminal Investigative Command and auditors from the Defense Contract Audit Agency and the Defense Contract Management Agency. Former DoD Employee Sentenced for Receiving Bribe in Kabul On March 28, 2012, Desi Deandre Wade, a former DoD employee assigned to Kabul, Afghanistan as the Chief of Fire and Emergency Services was sentenced to twenty months in federal prison for allegedly using his position to solicit and receive nearly $95,000 in bribes from a military contractor based in Afghanistan. In addition, Wade was sentenced to three years of supervised release and ordered to pay a fine of $4,000. On December 21, 2011, Wade pleaded guilty to a single count of bribery. According to court documents, Wade admitted to having solicited and received the payment from a confidential informant in exchange for directing a DoD contract to the informant’s company. This is a joint investigation with the FBI and the U.S. Army Criminal Investigation Command. Former DoD Contractor Jailed for Bribery Related to Contracts in Iraq On March 20, 2012,Terry Hall, a former DoD contractor, was sentenced in Birmingham, AL, to 39 months in prison and one year of supervised release for his participation in an alleged bribery and money laundering scheme related to bribes paid to obtain contracts awarded in support of the Iraq war. In addition, Hall agreed to forfeit $15,757,000, real estate property and a Harley Davidson motorcycle. Hall pleaded guilty on February 18, 2010, to conspiracy to pay more than $3 million in bribes to U.S. Army contracting officials stationed at Camp Arifjan, Kuwait, and to conspiracy to commit money laundering. The case against Hall and others arose from a wide-ranging corruption probe focusing on Camp Arifjan. As a result of this investigation, 17 individuals, including Hall, have pleaded guilty or been found guilty at trial for their roles in the scheme. This is a joint investigation with the U.S. Army Criminal Investigation Command, U.S. Immigration and Customs Enforcement, FBI, Internal Revenue Service-Criminal Investigation, Special Inspector General for Iraq Reconstruction, and the International Contract Corruption Task Force.
Contingency Contracting 2012: A Framework for Reform. The objective of this audit is to provide DoD field commanders and contract managers with information on contracting issues related to contingency operations that the DoD Inspector General identified and reported on from April 2, 2010 through March 31, 2012. Audit of Army Portable Electronic Devices and Removable Media Security Controls. The objective of this audit is to determine whether the Department of the Army has an effective cybersecurity program that identifies and mitigates risks surrounding portable electronic devices and removable media. Specifically, it will verify that Army officials are appropriately tracking, configuring, and sanitizing portable electronic devices. It will also determine whether the Army uses authorized removable media on its network. Audit of DoD Management of Repair Parts for High Mobility Multipurpose Wheeled Vehicles. The objective of this audit is to determine whether DoD is cost-effectively managing repair parts for High Mobility Multipurpose Wheeled Vehicles. ____________________________________________________ |
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