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NSIAD-96-22R 1 (1995-10-06)

handle is hein.gao/gaobackyr0001 and id is 1 raw text is: GAO United States General Accounting Office Washington, D.C. 20548 National Security and International Affairs Division B-262193 October 6, 1995 The Honorable Harold P. Smith, Jr. Assistant to the Secretary of Defense, Atomic Energy Dear Dr. Smith: We have been reviewing test results and operations at the Army's prototype chemical weapons incinerator on Johnston Atoll, the first of nine planned facilities administered by the U.S. Army Chemical Demilitarization and Remediation Activity. In our January 12, 1995, letter to the Secretary of the Army and in our July 14, 1995, testimony before the House Subcommittee on Military Procurement,' we discussed the progress made in meeting destruction rate goals and indications that the disposal program's life-cycle cost, currently estimated at $12 billion, was understated. This letter discusses the performance of the Johnston Atoll operation and maintenance contractor and actions to improve its performance. RESULTS IN BRIEF Johnston Atoll's operation and maintenance contractor has not sustained the high levels of performance desired. Between 1987 and 1991, the contractor's performance rating dropped from 92 to 70 out of a possible 100 points. In 1991, the Army added a 3-percent contract base fee and increased the award fee percentages to encourage improved timeliness and quality in the contractor's performance. Our analysis of performance scores and award fees from 1992 to 1994 showed that the contractor's overall performance did not improve relative to Army expectations, even though it received almost $5 million more in fees. According to Army program officials, the contractor's performance in terms of the volume of chemical agent destroyed improved throughout the period, but not at the rate expected. 'Chemical WeaDons Disposal: Issues Related to DOD's Management (GAO/T-NSIAD-95-185, July 13, 1995). 1 GAO/NSIAD-96-22 R Johnston Atoll Contractor Performance /553?/

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