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It's our money, we put them in charge....and this is what we get.
Pentagon Finds Iraq Deals Riddled with Problems |
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By Sue Pleming
WASHINGTON (Reuters) - A report by the Defense Department's inspector general has found major problems with some of the early contracts to rebuild Iraq (news - web sites), including poor planning, pricing and a lack of oversight.
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According to the report on the inspector general's Web site, procurement rules were not followed in 22 of 24 deals awarded by the military on behalf of the U.S.-led Coalition Provisional Authority in Baghdad and its now-defunct Office of Reconstruction and Humanitarian Assistance (ORHA).
Many of these contracts, the biggest of which was to create an Iraqi media network, were not competitively bid.
In one example, a contractor was paid even though he was on vacation. In another, vehicles were airlifted into Iraq at a cost of hundreds of thousands of dollars without proper approval. And in a third, a media contractor was used to organize garbage removal.
"In each phase the ORHA/CPA and DCC-W (Defense Contracting Command-Washington) cut corners from generating the initial requirements to surveillance of the contractor," said the March 18 report on the Web site (http://www.dodig.osd.mil).
The Iraq contracting process is under investigation by several government departments amid widespread allegations of overcharging and cronyism.
A contract to equip the Iraqi Army was canceled this month after complaints over the bidding process. The contract is being rebid, causing a delay in supplying the new army.
The latest Pentagon (news - web sites) report covers small contracts, mostly for humanitarian assistance, totaling $122.5 million.
"DOD cannot be assured that it was either provided the best contracting solution or paid fair and reasonable prices for the goods and services purchased," the report said of 22 deals.
It recommended "appropriate administrative action" be taken against officers who did not follow the rules.
MEDIA DEAL TARGETED
San Diego-based Science Applications International Corporation (SAIC), a private company, had eight contracts valued at up to $108.2 million that were criticized.
Its contract to rebuild Iraq's media has since been competitively bid and awarded to Florida-based (My emphasis) communications equipment maker Harris Corp. .
SAIC's media program manager requested the purchase of an H2 Hummer and a Ford C350 pickup truck and then chartered a DC-10 cargo jet to fly them to Iraq, the report said.
When the military contractor refused to allow these items to be added to the contract, SAIC went to a different DOD office and gained approval, the report said.
Contracting officers were unable to pinpoint the exact cost of the airlifted vehicle but one invoice entitled "Office and Vehicle" totaled about $381,000.
"SAIC has worked very diligently to ensure that we are performing to the customer's satisfaction. When unanticipated events occur, we immediately respond to address and resolve any issues," said company spokesman Ron Zollars.
The SAIC media contract was also criticized for employing staff for one task and assigning them another. An extreme example involved someone employed for the media contract who was then put in charge of garbage removal.
An e-mail to the contracting officer about the garbage assignment read: "Sit down before you read this attachment! I'm still in shock that 'Management' believes this is okay. I'm not sure what to do ... besides cry."
The commander of the DCC-W acknowledged in replies to the inspector general that his office had taken shortcuts, but contended that the report "represented a serious injustice to the personnel in his command, was riddled with faulty assumptions, erroneous conclusions."
http://story.news.yahoo.com/news?tmpl=story&cid=564&ncid=564&e=6&u=/nm/20040324/ts_nm/iraq_contracts_dc_1
