THE BLOG
06/14/2010 05:12 am ET Updated May 25, 2011

DCMA and Contractor Oversight

Let us start out by acknowledging that most federal government auditors and contracting officers charged with doing oversight on private contractors have a difficult job. As has been documented for years they are overburdened and until recently, under resourced. I am sure most of them try to do an enormously difficult job as professionally and competently as they can.

That said, they can only be as good as the agency they work for. When we think of private contractors working for the U.S. military that means places like the Defense Contract Auditing Agency and the Defense Contract Management Agency (DCMA). DCMA is the DOD Component that works directly with Defense suppliers to help ensure that DOD, Federal, and allied Government supplies and services are delivered on time, at projected cost, and meet all performance requirements.

With regard to the latter let's look at a recent report by the Department of Defense Inspector General. Titled "Defense Contract Management Agency Acquisition Workforce for Southwest Asia" its objective was to determine DCMA requirements to support Southwest Asia (SWA) contracting operations and the number of available DCMA civilian, military, foreign national, and support contractors supporting the operations. Specifically, it determined whether DCMA identified its requirements to support SWA contracting operations. It also evaluated whether a sample of the DCMA acquisition workforce for SWA was adequately trained and certified.

Southwest Asia means Afghanistan -- so one can see this is not a just a subject of academic concern.

Unfortunately for U.S. troops there, the report makes DCMA look a bit like the Keystone Cops. The report found that as of December 31, 2008, DCMA provided contract oversight and contract administration for contract actions valued at $1.3 trillion.

But DCMA could not determine its resource requirements for contractor oversight and
contract administration in SWA because:

DCMA is reactive rather than proactive in assuming its role to provide contractor oversight and contract administration.

DCMA did not define its acquisition workforce requirements to support contracting operations in SWA,

AT&L [Under Secretary of Defense for Acquisition, Technology, and Logistics] does not require Defense agencies to document acquisition workforce requirements, and

DCMA must be delegated contractor oversight and contract administration responsibility for work in SWA.

On the not so outlandish assumption that one can't do good oversight if you don't have good auditors the report dismayingly reports that:

DCMA Southwest Asia personnel did not have the proper training and certification for contingency contracting positions in SWA. Specifically, of the 221 DCMA personnel training records reviewed from a universe of 1,170 from FY 2004 through FY 2009:

103 DCMA personnel were not fully qualified for the position occupied, and

57 quality assurance representatives did not have or could not produce proof of Defense Acquisition Workforce Improvement Act certification.

In addition, of the 75 position descriptions DCMA provided, 30 position descriptions were either incorrect or did not have a requirement for certification.

Although the Pentagon has said numerous times in the past several years that it is increasing the size of its acquisition workforce the IG report noted that

DCMA reported that its civilian staffing decreased from 19,403 full-time equivalents as of October 1, 1992, to 9,423 as of December 31, 2008 (a 51 percent decrease). DCMA military staffing decreased from 570 on January 1, 2003, to 542 as of December 31, 2008. From October 1, 1999 through December 31, 2008, the number of DCMA-administered contracts increased from 309,000 to 321,000, while the obligated value of those contracts increased from $866 billion to $1.3 trillion (50 percent increase). Conversely, during the same period the number of contractors administered by DCMA decreased from 18,600 to 18,500.

With those numbers it is small wonders problems keep cropping up.

Considering what I wrote in my last post, regarding contractors overseeing contractors, it is worth noting that the report says,

DCMA does not (nor is required to) report the number of contractor and foreign national personnel in the acquisition workforce. However, the Logistics Civil Augmentation Program (LOGCAP) contract requires contractor personnel to perform contract administration functions. As a result, an unknown number of contractor and foreign national personnel may be supplementing the contract administration workforce.

For those who wonder why that is a problem, consider this excerpt from the IG report::

The Army awarded the LOGCAP III contract to Kellogg, Brown, and Root in 2001 and delegated the responsibility of managing the LOGCAP III contract to DCMA in August 2006. Although DCMA was delegated contract administration authority for the LOGCAP III contract, DCMA relied on the prime contractor to perform quality assurance, inspections, and repair in those facilities. DOD Inspector General (IG) Report No. IE-2009-006, "Review of Electrocution Deaths in Iraq: Part I - Electrocution of Staff Sergeant Ryan D. Maseth, U.S. Army," July 24, 2009, found that the prime contractor did not advise DCMA of electrical deficiencies in facilities that soldiers and contractors occupied. As a result, one service member died in those facilities due to faulty electrical wiring and improperly grounded electrical equipment. The report stated that the Government in good faith relied upon the contractor to provide qualified people to do the work as part of the "workmanlike" standard and quality provisions provided for under the terms of the contract. In addition, the report stated that LOGCAP III Support Unit contracting officer acceptance of prime contractor assumptions during contract negotiations resulted in a false perception that buildings and peripheral equipment were in acceptable condition during the transfer of Radwaniyah Palace Complex facility operations and maintenance to LOGCAP III.