Summary: In response to a congressional request, GAO: (1) reviewed the Defense Logistics Agency's (DLA) implementation of the Office of Management and Budget's (OMB) fast pay program revisions; and (2) evaluated the effectiveness of DLA internal control procedures to ensure receipt of items purchased under the program.
GAO found that: (1) DLA did not implement the revised OMB fast pay-procedures; (2) both the Defense Personnel Support Center (DPSC) and Defense Electronics Supply Center (DESC) inappropriately used fast-pay procedures to purchase stocks sent directly to supply depots; and (3) DPSC failed to observe the OMB limit of $25,000 on contracts using fast-pay procedures. GAO also found that DLA: (1) internal control procedures did not identify or resolve payment for items that were not received; (2) failed to collect an estimated $7 million in overpayments to vendors; (3) continued to award fast-pay contracts to contractors with poor performance histories because contracting officers either failed to check or disregarded sanction lists; and (4) has not established procedures to ensure receipt of materiel sent directly from contractors' plants to overseas locations.
