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GAO-10-350R 1 (2010-01-29)

handle is hein.gao/gaobaanra0001 and id is 1 raw text is: i ~G AO0 Acounta bilty I Integrity * Reliability United States Government Accountability Office Washington, DC 20548 January 29, 2010 Congressional Committees Subject: Defense Acquisitions: Observations on the Department of Defense Service Contract Inventories for Fiscal Year 2008 The Department of Defense (DOD) is the federal government's largest purchaser of contractor-provided services and relies on contractors to support its varied missions. DOD's contractors provide a range of services, such as consulting and administrative support, information technology services, and weapon system and base operations support. However, DOD contract management has been on our high-risk list since 1992,' and our recent work continues to identify weaknesses in DOD's management and oversight of services contracts. In particular, we have reported on the need for reliable data on how service acquisition dollars are spent to make informed contract management decisions and achieve positive acquisition outcomes.2 Congress has enacted legislation in recent years to increase the availability of information on services acquisitions to improve DOD's ability to manage these purchases. As part of those efforts, the National Defense Authorization Act for Fiscal Year 2008 amended 10 U.S.C. § 2330a to require DOD to submit an annual inventory of the activities performed pursuant to contracts for services for or on behalf of DOD during the preceding fiscal year. These inventories are to contain a number of different elements for the service contracts listed, including information on the functions and missions performed by the contractor, the funding source for the contract, and the number of contractor full-time equivalents (FTE) working under the contract. Once compiled, the inventories are to be reviewed by senior DOD officials and used to inform a variety of acquisition and workforce decisions. House Armed Services Committee Report 111-116, which accompanied the National Defense Authorization Act for Fiscal Year 2010, directed us to assess the methodology used by the Departments of the Army, Navy,4 and Air Force to compile the service contract inventories for fiscal year 2008. In December 2009, we provided your staff with a briefing on the results of our assessment of the methodologies used. This letter summarizes that briefing, which is contained in enclosure I. To assess the methodologies used by each of the military departments in compiling their fiscal year 2008 inventories, we obtained and reviewed each of the inventories 'GAO, High-Risk Series. An Update, GAO-09-271 (Washington, D.C.: January 2009). 2 GAO, Defense Acquisitions. TailoredApproach Needed to Improve Service Acquisition Outcomes, GAO-07-20 (Washington, D.C.: Nov. 9, 2006). 3 10 U.S.C. § 2330a (c). 4 Throughout this letter and the enclosed briefing, we use the term Navy to refer to the Department of the Navy, which includes both the Navy and the United States Marine Corps.

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