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

DoD National Capital Region Nontactical Fleet Vehicles. This audit determines whether DoD agencies and the military services have controls in place to accurately assess their requirements for nontactical vehicles in their National Capital Region vehicle fleets. Specifically, the audit examines whether adequate controls are in place to monitor the usage, quantity and type of vehicles owned or leased.

Justification Process for Use of Military Airlift by the U.S. Army Special Operations Command. This audit determines whether U.S. Army Special Operations Command officials are complying with applicable federal and DoD guidance when justifying the use of military airlift.

Advanced Combat Helmet Technical Assessment. This review evaluates the current testing protocols for the Advanced Combat Helmet, in response to a congressional request.

Assessment of U.S. Government and Coalition Efforts to Train, Equip, and Advise the Afghan Border Police. This assessment determines the effectiveness of planning and operational implementation efforts by U.S. and Coalition forces to train, equip and advise in the development of the Afghan Border Police (ABP). It includes evaluating outcomes at ABP locations at various stages of its development to determine the effectiveness of U.S. and Coalition involvement in developing the ABP and Afghan Minister of Interior’s ability to manage the program.

Assessment of DoD Wounded Warrior Matters at Joint Base Lewis-McChord. This assessment determines whether the programs for the care, management and transition of soldiers in the Warrior Transition Battalion, Joint Base Lewis-McChord in Washington were managed effectively and efficiently. The assessment includes the missions, policies and processes in place to assist warriors in transition with their return to duty status or transition to civilian life as well as the DoD programs for service members affected with Traumatic Brain Injury and Post Traumatic Stress Disorder.

Acquisition of the Navy P-8A Poseidon Aircraft. This audit determines whether the Navy is effectively preparing the P-8A Poseidon program for the full-rate production decision.

RECENTLY RELEASED REPORTS OF INTEREST (to view report, if available, please click on title)

Assessment of Voting Assistance Programs for Calendar Year 2012 (Report No. DODIG-2013-74). This statutorily required annual assessment determined that while DoD voting assistance programs were in compliance with requirements, they did not apply clearly defined voting assistance program goals and metrics necessary to evaluate program effectiveness. The military services also had issues affecting execution of voting assistance programs, such as potential staffing overlaps, outdated regulations, and a failure to explain why some installations did not have voter assistance offices.

Defense Agencies Initiative (DAI) Did Not Contain Some Required Data Needed to Produce Reliable Financial Statements (Report No. DODIG-2013-070). This audit determined that the DAI Program Management Office spent $193 million to deploy the DAI Agencies Initiative without ensuring the system fulfilled the functional capabilities needed to generate reliable financial data. As a result, financial data were unreliable, creating uncertainty on how $402 million out of $9.3 billion was reported on FY 2011 financial statements for the Defense Technical Information Center, Missile Defense Agency, and the Uniformed Services University of the Health Services.

Defense Contract Management Agency Santa Ana Quality Assurance Oversight Needs Improvement (Report No. DODIG-2013-069). This audit determined that quality assurance representatives assigned to four contracts for the Defense Contract Management Agency Santa Ana, Calif., valued at about $278 million, did not adequately perform or document their quality assurance surveillance. As a result, Defense Contract Management Agency Santa Ana officials provided limited assurance that 18,507 critical safety items, consisting of T-11 parachutes, oxygen masks, drone parachutes, and breathing apparatuses met contract requirements.

The Audit Opinion of the Defense Information Systems Agency FY 2011 Working Capital Fund Financial Statements Was Not Adequately Supported (Report No. DODIG-2013-71). This post-audit review determined that the unqualified opinion rendered by an independent public accounting firm on the Defense Information Systems Agency (DISA) FY11 Working Capital Fund financial statements could not be relied upon by DoD, Congress or the taxpayer.  The firm’s auditing procedures were inadequate and it lacked sufficient evidence to issue an unqualified opinion. In addition, DISA senior leadership prohibited the Contracting Officer’s Representative from completing key duties required to provide oversight of the firm’s work. Therefore, DoD does not have assurance that the financial statements are free of material misstatements.

DEFENSE CRIMINAL INVESTIGATIVE SERVICE HIGHLIGHTS (to view DoJ press release, if available, please click on title)

Caddell Construction To Pay $1.1 Million After Alleged False Claims Act Violations. On March 25, 2013, Caddell Construction agreed to pay $1.1 million to resolve allegations that it violated the False Claims Act. Caddell allegedly falsely represented to the Army Corps of Engineers that it was mentoring a Native American-owned company to work on construction projects at Fort Bragg, N.C. and Fort Campbell, Ky. According to the government, Caddell collected payments without mentoring or having the Native American company perform the work. This was a joint investigation with the General Services Administration (GSA) OIG.

Former DoD Contract Employee Sentenced After Participating in Army Contracting Office Corruption Scheme. On April 2, 2013, Wajdi Birjas was sentenced to three years of supervised release and ordered to forfeit $650,000. Birjas pleaded guilty in 2010 to one count each of conspiracy to commit bribery and conspiracy to commit money laundering. While working at the Host Nation Affairs office at Camp Arijan, Kuwait, Birjas bribed Army contracting officials to award more than $1.7 million in contracts and received a share of the profits that the contracts generated. This was a joint investigation with U.S. Army Criminal Investigation Command (CID), the FBI, and the Special Inspector General for Iraq Reconstruction.

Bribery and Kickback Scheme Leads to More Guilty Pleas. On April 11, 2013, Nova Datacom, LLC and former president Min Jung Cho pleaded guilty to conspiracy to defraud the U.S. Nova Datacom also pleaded guilty to three counts of bribery. Nova Datacom, an information assurance and security services firm, admitted to paying more than $15 million in bribes to three Army officials in return for contracts. The contractor also paid more than $790,000 in kickbacks to executives of two companies that routed subcontracts to the firm. This was a joint investigation with the FBI, Small Business Administration (SBA) OIG, IRS-Criminal Investigation (IRS-CI), the U.S. Marshals Service, and Army CID.

Stolen Military Property Lands Ringleader in Prison. On April 17, 2013, Michael Bartch Sr. was sentenced to two years in prison, two years of supervised release and a $2,000 fine. Bartch pleaded guilty in 2012 to one count each of illegally exporting a defense article, receiving stolen property and money laundering. Bartch admitted to violating export laws and selling stolen U.S. military equipment beginning in 2007. The estimated loss to the DoD as a result of this scheme is in excess of $7 million of stolen U.S. military property. This was a joint investigation by the Central Texas Counter Proliferation Task Force, which includes DCIS, Army CID, Naval Criminal Investigative Service, Immigrations and Customs Enforcement-Homeland Security Investigations, IRS-CI, the FBI, Department of Commerce, and Bureau of Alcohol, Tobacco, Firearms and Explosives.

RECENTLY ANNOUNCED PROJECTS (to view the announcement letters, click on the title)

Audit of the XM25 Individual Semi-Automatic Airburst System. The objective of this audit is to determine whether DoD is effectively managing and developing the XM25 Individual Semi-Automatic Airburst System for a Milestone C decision. The XM25 airburst system is used by soldiers to launch ammunition that is set to explode in mid-air at or near the target. The Milestone C decision determines whether the system is approved to enter the production and deployment phase. DoD estimates the XM25 system cost at approximately $372 million.

Audit of Multiple Award Contracts for Services at Washington Headquarters Services. The objective of this audit is to determine whether Washington Headquarters Services (WHS) contracting officials complied with Federal Acquisition Regulations and other rules and regulations for the solicitation, award and management of a set of multiple award contracts for information technology solutions, program management, knowledge management, administrative and survey services. These contracts have a not-to-exceed value of $555 million. This is the first in a series of audits to review multiple award contracts for services at WHS.

Audit of the Headquarters U.S. Southern Command Use of Government Purchase Cards. The objective of this audit is to determine whether the U.S. Southern Command’s use of government purchase cards complies with applicable laws and regulations. Section 2784, title 10, United States Code (10 U.S.C. § 2784) requires periodic audits of the Department of Defense management of purchase cards.

Audit of the Security Controls Over Navy's Secret Internet Protocol Router Network Access Points. The objective of this audit is to determine whether the Navy is effectively protecting Secret Internet Protocol Router Network (SIPRNET) access points and to review logical and physical controls intended to protect them. This is the first in a series of audits to review the controls implemented by the military departments for protecting the SIPRNET. The audits will assess each of the military branches separately.

TESTIMONY/PREPARED STATEMENTS

U.S. Foreign Assistance: What Oversight Mechanisms are in Place to Ensure Accountability? Ambassador Kenneth Moorefield, Deputy Inspector General for Special Plans and Operations, testified on April 10, 2013, before the House Committee on Oversight and Government Reform. His testimony focused on DoD IG oversight efforts related to DoD direct assistance to Afghanistan.

Contracting to Feed U.S. Troops in Afghanistan: How did the Defense Department End Up in a Multi-Billion Dollar Billing Dispute? Mr. Daniel Blair, Deputy Inspector General for Auditing, testified on April 17, 2013, before the House Committee on Oversight and Government Reform, Subcommittee on National Security. His testimony addressed DoD IG completed and ongoing audits of the Subsistence Prime Vendor Contract in Afghanistan and how DoD can use lessons learned from the audits to minimize the risks of repeating mistakes.

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Unclassified reports are available for download on the DoD IG web site at http://www.dodig.mil/PUBS/.

To request a copy of For Official Use Only or classified reports, please click here to file a Freedom of Information Act request. Federal Government requesters: please click here.

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