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.
DOD IG POSTS NEW HOTLINE WEBSITE
As a part of our commitment to facilitate the reporting of fraud, waste, abuse, and mismanagement, the DoD IG will post on June 1st a new DoD Hotline website on the Internet. In addition, new websites will be posted on the classified SIPRNET and JWICS networks in the near future.
The three new websites provide a more user friendly interface to help guide individuals who may want to make disclosures involving both unclassified and classified information. The websites incorporate "Best Practices" as identified by the Council of Inspectors General on Integrity and Efficiency (CIGIE) in its report “Recommended Practices for Office of Inspector General Hotlines.”
UPCOMING REPORTS
Significant reports expected to be released within the next 30 days include:
- Adequacy of Medical Facility Planning in Guam – This audit evaluates the adequacy of medical facility planning in Guam. Specifically, we determined whether planned health care resources were sufficient to accommodate increased requirements as a result of the base closure actions in Okinawa, Japan.
- Investigation of a Questionable Intelligence Activity – In response to a request from the Assistant Secretary of Defense for Special Operation/Low-Intensity Conflict and Independent Capabilities, this investigation reviews an allegation of questionable intelligence activities by government and contractor personnel. The report is classified.
- Assessment of the U.S. Department of Defense Efforts to Develop an Effective Medical Logistics System Within the Afghan National Security Forces – This assessment was performed in response to a request from the Commander, NATO Training Mission-Afghanistan/Combined Security Transition Command-Afghanistan. The objective was to examine the systems in place for U.S. procurement and distribution, storage, accountability and use of pharmaceuticals for the Afghan National Army. The assessment also focused on advisory and oversight mechanisms supporting this program.
- Army Warfighter Field Operations Customer Support Contract – This audit determines whether contracting officials adhered to Federal and DoD policies for subcontracting in a contingency environment while administering the Warfighter Field Operations Customer Support Contract.
- DoD Contractor Debt Management System – This audit determines whether the Defense Finance and Accounting Service properly recorded, offset, and tracked contractor debts and collections.
RECENTLY RELEASED REPORTS OF INTEREST
Excess Inventory and Contract Pricing Problems Jeopardize the Army Contract with Boeing to Support Corpus Christi Army Depot (Report D-2011-061) Army Aviation and Missile Life Cycle Management Command (AMCOM) officials did not effectively use $339.7 million of existing DoD inventory before procuring the same parts from Boeing because DoD had inadequate policies and procedures addressing inventory use. We also identified $242.8 million to $277.8 million of excess inventory that AMCOM could use to satisfy the Corpus Christi Army Depot contract requirements. We calculated that Boeing charged the Army about $13 million or 131.5 percent more ($23 million versus $10 million) than fair and reasonable prices for 18 of the 24 parts we reviewed. Below is a photo and information on one of the examples cited in the report.
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DLA 2009 Unit Price: $7.71
Boeing 2009 Unit Price: $1,678.61
Boeing Refunded: $76,849 |
The report is “For Official Use Only,” but to see the publicly releasable “Results in Brief,” click here. A redacted version of the report will be posted on the DoD IG web site at www.dodig.mil as soon as it is available.
Consistent Use of Supply Support Activities Could Increase Efficiency of Equipment Drawdown from Iraq (Report No. D-2011-056) This audit was requested by the U.S. Central Command and focused on oversight of asset accountability. As of December 2010, DoD estimated that the drawdown from Iraq would include the withdrawal of approximately 1.2 million pieces of equipment. Although the Supply Support Activities and Central Receiving and Shipping Points effectively processed equipment in support of the Iraq drawdown, DoD activities bypassed the Supply Support Activities and shipped equipment directly to the Theater Redistribution Center at Camp Arifjan, Kuwait. This resulted in decreased efficiency, increased risk of personnel injury and work stoppage at the Theater Redistribution Center at Camp Arifjan, Kuwait. To see the report, click here.
U.S. Cyber Command Authorities Pertaining to Use of National Security Agency Personnel (Report No. 11-INTEL-10) This review was the result of a DoD IG Hotline complaint about the stand-up of U.S. Cyber Command, alleging that the Director, NSA was inappropriately merging organizational lines and titled legal authorities. While the review determined that the allegations were not substantiated, the report addresses issues related to titled legal authorities and the use of force. The report is classified.
DEFENSE CRIMINAL INVESTIGATIVE SERVICE HIGHLIGHTS
 Serono to Pay $44.3 Million to Resolve False Claims Act Allegations in Connection with Promotion Of Drug Rebif
Pharmaceutical manufacturers Serono Laboratories, Inc.; EMD Serono, Inc.; Merck Serono S.A.; and Ares Trading S.A. have agreed to pay $44.3 million to resolve False Claims Act allegations in connection with the marketing of the drug Rebif. The settlement resolves allegations that, between January 1, 2002 and December 31, 2009, Serono paid health care providers to induce them to promote or prescribe Rebif, which is used to treat multiple sclerosis. The settlement resolves allegations involving false claims submitted to Federal health care programs including Medicare, Medicaid, and TRICARE. The settlement was announced on May 4, 2011. For more information, click here.
Former U.S. Army Major Pleads Guilty to Money Laundering Charge Related to Contracts Supporting Iraq War
On May 11, 2011, a retired major in the U.S. Army pleaded guilty in San Antonio, Texas, to accepting $400,000 from a contractor following his deployment to Kuwait. Charles Joseph Bowie Jr., 45, of Georgetown, Texas, pleaded guilty before U.S. Magistrate Judge Nancy Stein Nowak in the Western District of Texas to criminal information charging him with one count of engaging in monetary transactions in property derived from specified unlawful activity. Bowie also admitted that he entered into a sham consulting agreement with the contractor to conceal the payments. For more information, click here.
RECENTLY ANNOUNCED PROJECTS
Assessment of U.S. and Coalition Plans to Train, Equip, and Field the Afghan Air Force
The objective of this assessment is to determine whether the U.S. Government and Coalition Forces plans for training, equiping, and fielding a viable and sustainable Afghan Air Force are prepared, issued, operative, and relevant. Specifically, we will evaluate two elements supporting the goal of Final Operational Capability by September 2012: (1) the current status of AAF development compared to Command expectations; and (2) the viability of Command plans to achieve the stated goal over the next 15 months.
Audit of DoD Contracts Awarded Without Competition
The objective of this audit is to determine whether DoD noncompetitive contract awards are properly and adequately justified as sole source, and whether the determination of the negotiated price of the award is fair and reasonable.
Audit of Accountability for Night Vision Devices Procured for the Afghan National Security Forces
The objective of this audit is to evaluate the accountability for night vision devices and associated parts procured for the Afghan National Security Forces.
Audit of the Development of Individual Equipment Requirements for the Afghan National Army
The purpose of this audit is to determine whether the development process for the Afghan National Army regarding requirements for individual equipment was adequate. Specifically, we will determine the adequacy of the acquisition, sustainment, and training requirements established for individual items for the Afghan National Army.
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