UPCOMING REPORTS

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

Follow-on Audit of the Defense Logistics Agency's Spare-Parts Purchases on Contracts in Support of the C-130 Hercules Aircraft.  The objective of this audit is to determine whether the Defense Logistics Agency made cost-effective material purchases to support the C-130 Hercules aircraft.

Evaluation of United States Army Criminal Investigation Command Sexual Assault Investigation. A U.S. Senator requested that the DoD IG assess concerns about a United States Army Criminal Investigation Command (CID) response to a previous inquiry into CID's handling of sexual assault allegations against a United States Army Reserve member.

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

Evaluation of Defense Contract Management Agency Actions on Reported DoD Contractor Business System Deficiencies (DODIG-2016-001). This evaluation determined that for the 21 Defense Contract Audit Agency reports evaluated, the Defense Contract Management Agency contracting officer’s actions did not comply with one or more Defense Federal Acquisition Regulation Supplement requirements involving reported business system deficiencies. DCMA contracting officers did not: (1) issue timely initial and final determinations; (2) obtain or adequately evaluate contractor responses; and (3) withhold a percentage of contractor payments.

DoD Needs a Comprehensive Approach to Address Workplace Violence (Report No. DODIG 2016-002). This audit determined that DoD did not have a comprehensive program to address workplace violence threats and incidents. In the absence of a comprehensive program, the military services and the Defense Threat Reduction Agency used different approaches to address workplace violence. As a result, military personnel, DoD civilian employees, and contractors were not equally prepared to prevent and respond to workplace violence.

Space and Naval Warfare Systems Command and Overall Navy Needs to Improve Management of Waiver and Deferral Requests (Report No. DODIG‐2016‐003). This audit determined that the Space and Naval Warfare Systems Command, as well as the Naval Air and Naval Sea Systems Commands, did not request waivers or deferrals when a program did not meet the certification criteria needed to enter initial operational test and evaluation. 

Army Needs to Improve Contract Oversight for the Logistics Civil Augmentation Program’s Task Orders (Report No. DODIG-2016-004). This audit determined that the Army did not provide sufficient contract oversight for the Logistics Civil Augmentation Program that supported Operation United Assistance. Operation United Assistance is the U.S. mission to combat the Ebola virus in West Africa. Insufficient oversight increased the risk that the Army paid for goods or services that did not meet contractor performance standards.
 

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

Massachusetts Man Sentenced to 37 Months in Prison for Trafficking Counterfeit Military Goods. On October 6, 2015, Peter Picone, former owner of Tytronix, Inc., and Epic International Electronics (Epic), was sentenced to 37 months in prison for importing and selling counterfeit integrated circuits. Picone was also ordered to pay $352,076 in restitution to the 31 companies whose integrated circuits he counterfeited, to forfeit $70,050, and to relinquish 35,870 counterfeit integrated circuits. Previously, the Navy suspended Picone and Epic from government contracting. From February 2007 through April 2012, Picone purchased counterfeit integrated circuits from China and Hong Kong and then resold them to U.S. and foreign customers, including defense contractors for use in nuclear submarines. This was a joint investigation with the Naval Criminal Investigative Service and Immigration and Customs Enforcement-Homeland Security Investigations.

UFC Aerospace and UFC’s Former President Settled Allegations of Engaging in Fraudulent Conduct in Violation of the Small Business Act. On October 8, 2015, UFC Aerospace, LLC, and Douglas Davis, former president of UFC, agreed to pay $20,015,956 to settle allegations of fraudulent conduct in violation of the Small Business Act. Allegedly, from at least 2001 through 2011, UFC certified to government contractors that UFC was a woman-owned small business (WOSB) when UFC did not meet the statutory requirements for WOSB status. UFC allegedly made these misrepresentations to obtain a competitive advantage in securing numerous lucrative defense subcontracts with government contractors. This was a joint investigation with the Small Business Administration (SBA) Office of Inspector General (OIG).

Virginia Businessman Sentenced to 88 Months in Prison for Role in Bribery Scheme Involving Government Contracts. On October 8, 2015, Young Cho, also known as Alex Cho, chief technology officer for Nova Datacom, LLC, was sentenced to 88 months in prison and three years supervised release for a bribery scheme in which he paid millions of dollars in bribes to officials from the U.S. Army Corps of Engineers (USACE) in return for government contracts. Cho was also ordered to pay restitution of $7,656,073 to USACE and to pay a forfeiture money judgment of $6,884,948. In addition to Cho, 19 other individuals and Nova Datacom have pleaded guilty to federal charges related to this bribery scheme. This was a joint investigation with the Army Criminal Investigation Command, Internal Revenue Service-Criminal Investigation, the Federal Bureau of Investigation, and SBA OIG.

Boeing Paid $18 Million to Settle False Claims Act Allegations. On October 14, 2015, the Boeing Company paid the United States $18 million to settle allegations that the company submitted false claims for labor charges on maintenance contracts with the Air Force for the C-17 Globemaster aircraft. Boeing allegedly charged the Air Force for time its mechanics spent on extended breaks and lunch hours and not on maintenance and repair work properly chargeable to the contracts. This was a joint investigation with the Air Force Office of Special Investigations.
 

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

Assessment of U.S. and Coalition Plan/Efforts to Train, Advise, Assist, and Equip the Kurdish Security Forces. The objective of this assessment is to determine whether U.S. and Coalition goals, objectives, plans, guidance, operations, and resources to train, advise, assist, and equip the Kurdish Security Forces to counter the Islamic State of Iraq and Levant are operationally effective to initiate and sustain combat operations.

Research on Allegations of Child Sexual Abuse by Security Ministry and Afghan National Defense Security Force Officials and DoD Activity in Response to Such Allegations. The objective of this research project is to focus on answering questions relating to allegations of child sexual abuse by Afghan government officials since 2011 and to gather and review information, identify criteria, and analyze previous reporting as a basis for potential work.

Attestation of DoD Compliance With Service Contract Inventory Compilation and Certification Requirements for FY 2014. This audit determines whether the DoD components' comply with federal and DoD requirements to certify the FY 2014 inventory of contracts for services.

Audit of Contract Awards at Naval Oceanographic Office. This audit determines whether the Naval Oceanographic Office properly awarded contracts.

Audit of Award of Service Contracts by U.S. Army Special Operations Command. This audit determines whether U.S. Army Special Operations Command awarded service contracts and task orders in accordance with federal and DoD regulations.

Audit of Reliability of Financial and Operational Data Reported for Operation Inherent Resolve. This audit determines whether the Air Force has adequate accountability of DoD funds supporting Operation Inherent Resolve by determining the accuracy of obligations and disbursements, as reported in the Cost of War report.

Follow-on Audit of the XM25 Counter Defilade Target Engagement System. This audit determines the impact of schedule delays on the initial production decision for the XM25 program since DoDIG Report No. DODIG-2014-048 was issued on March, 21, 2014.  Additionally, the audit will determine whether the Army has appropriately assessed the affordability of the XM25 program and implemented Better Buying Power (BBP) initiatives for the program. BBP is the implementation of best practices to strengthen the Defense Department’s buying power, improve industry productivity, and provide an affordable, value-added military capability to the warfighter.