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GAO-08-316R 1 (2008-01-22)

handle is hein.gao/gaocrptawgt0001 and id is 1 raw text is: S=GAO Accountability * Integrity * Reliability United States Government Accountability Office Washington, DC 20548 January 22, 2008 Congressional Committees Subject: Defense Logistics: The Army Needs to Implement an Effective Management and Oversight Plan for the Equipment Maintenance Contract in Kuwait The Department of Defense (DOD) relies on contractors to perform many of the functions needed to support troops in deployed locations. For example, at Camp Arifjan, Kuwait the Army uses contractors to provide logistics support for operations in Iraq and Afghanistan. Contractors at Camp Arifjan refurbish and repair a variety of military vehicles such as the Bradley Fighting Vehicle, armored personnel carriers, and the High-Mobility, Multi-Purpose Wheeled Vehicle (HMMWV). However, while contractors provide valuable support to deployed forces, we have frequently reported that long-standing DOD contract management and oversight problems increase the opportunity for waste and make it more difficult for DOD to ensure that contractors are meeting contract requirements efficiently, effectively, and at a reasonable price. In its fiscal year 2007 report,' the House Appropriations Committee directed GAO to examine the link between the growth in DOD's operation and maintenance costs and DOD's increased reliance on service contracts. In May 2007 we issued a report that examined the trends in operation and maintenance costs at installations within the United States.2 A second report examining the cost impact of using contracts to support deployed forces is expected to be issued in 2008. In the interim, we are issuing this report to you on the Army's Global Maintenance and Supply Services (GMASS) contract's multimillion-dollar Kuwait task order-Task Order 1-because of the findings we uncovered during this engagement and the implications for waste of taxpayer dollars and the potential negative impact on the warfighter as well as on our redeployment from Iraq once a decision is made to do so. This report discusses information about Task Order I that we developed during our review. Our objectives were to (1) evaluate the contractor's performance of maintenance and supply services under Task Order 1, (2) determine the extent to which the Army's quality assurance and contract management activities implement key principles of quality assurance and contract management regulations and 'H.R. Rep. No. 109-504, at 46-47 (2006). 2GAO, Defense Budget: Trends in Operations and Maintenance Costs and Support Services Contracting, GAO-07-631 (Washington, D.C.: May 18, 2007). GAO-08-316R Defense Logistics

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