| From the DoD IG ... | August 2011 |
The purpose of the “DoD IG Update” is to make the organization more transparent. Transparency is one of the ways we can demonstrate how we live up to our core values of accountability, integrity, efficiency, and excellence. If you have any questions or suggestions, please reply to IGUpdate@dodig.mil.  UPCOMING REPORTS Significant reports expected to be released within the next 30 days include:
RECENTLY RELEASED REPORTS OF INTEREST DoD and DoS Need Better Procedures to Monitor and Expend DoD Funds for the Afghan National Police Training Program (Report D-2011-080). This audit is the first in a series conducted in accordance with the FY 2011 National Defense Authorization Act, which requires DoD in consultation with the Department of State to report on the Afghan National Police training program. We determined whether the DoS properly obligated approximately $1.26 billion of DoD funds in support of the Afghan National Police. We found that DoS officials did not appropriately obligate or return to DoD approximately $172.40 million of approximately $1.26 billion in DoD funds provided for the ANP training program. We identified total potential monetary benefits of approximately $124.62 million. To see the report, click here. Improvements Needed in Sharing Tactical Intelligence with the International Security Force-Afghanistan (Report 11-INTEL-13) The evaluation examined compliance with DoD and North Atlantic Treaty Organization guidance for providing U.S. tactical intelligence information to coalition forces. The full report is classified, but to see the publicly releasable “Results in Brief,” click here. Additional Actions Can Further Improve the DoD Suspension and Debarment Process (Report D-2011-083). We found thatthe Services and the Defense Logistics Agency had an effective suspension and debarment process, which helps to ensure that the Government is doing business only with responsible contractors. The Defense Logistics Agency contracting officers were referring poorly performing contractors for suspensions and debarments at a greater rate than the Services' contracting officers. As a result of the Services' contracting officers potentially not referring as many poorly performing contractors to the suspension and debarment officials for suspension or debarment, poorly performing contractors may still be receiving Federal contracts. To see the report, click here. DFAS Needs More Effective Controls Over Managing DoD Contractor Debt (Report D-2011-084). The Defense Finance and Accounting Services management did not effectively manage the completeness and accuracy of data in the Contractor Debt System. We identified 46 transactions, valued at $15.7 million, that did not have a Taxpayer Identification Number and a Commercial and Government Entity code; and 62 transactions, valued at $58.3 million, that had insufficient supporting documentation. DFAS management did not have controls over recording contractor identification information and did not have effective controls for tracking contractor debts. As a result, there is an increased risk that DFAS operations will not collect all of the DoD contractor debt. To see the report, click here.
Audit of the Defense Contract Management Agency Quality Assurance Oversight. Our objective is to determine whether the Defense Contract Management Agency is performing quality assurance procedures and oversight of contractors in accordance with applicable policies for critical safety items such as parachutes, fire resistant fabrics, pressurized oxygen masks, and chemical protective clothing. Audit of Adequacy of Controls Over Small Arms Contracts for the Afghan National Security Forces. Our objective is to evaluate the contract award, pricing, and quality assurance provisions for small arms, to include accessories and spare parts, acquired using Afghanistan Security Forces Funds. We will also determine whether the contract processes were in accordance with applicable acquisition regulations. Audit of the Army Business Systems Information Technology Strategy. We will determine whether the Army Business Systems Information Technology Strategy and its implementation ensure adequate governance and program management of enterprise resource planning systems. ____________________________________________________ |
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New Jersey-Based Defense Contractor Pleads Guilty to Violating Arms Export Control Act, Conspiracy with Chinese Company; Swiss Technology Inc. Consents to $1.1 Million in Restitution. On July 12, 2011, New Jersey-based defense contracting company Swiss Technology, Inc. (“Swiss Tech”) admitted to conspiring to violate the Arms Export Control Act by exporting U.S. Department of Defense drawings and specifications to the People’s Republic of China. Swiss Tech entered into contracts with the DoD to manufacture defense articles and parts for use in military operations. Rather than manufacture the parts, Swiss Tech exported DoD drawings, specifications, and sample parts to the People’s Republic of China without obtaining a license from the U.S. State Department. The company contracted with a company in the People’s Republic of China which manufactured the items at a much cheaper price per unit than they would have cost to make in the United States using domestic product. The items included parts to be used with M4 and M16 rifles, and M249 machine guns, some of which were to be used in U.S. military operations. The joint investigation was conducted by the Defense Criminal Investigative Service, the U.S. Immigration and Customs Enforcement’s Homeland Security Investigation, and the U.S. Department of Justice’s National Security Division, Counterespionage Section, as well as the U.S. Air Force Office of Special Investigations and U.S. Army Criminal Investigation Command. For more information, click