Summary: The Army allegedly abused the contract "offloading" process and circumvented the Competition in Contracting Act of 1984 as part of a three-year, $8-million contract with the Computer Sciences Corporation. Although this contract expired in September 1989, it was extended to September 1992 to allow for the completion of contracts for goods and services. By March 1993--3 1/2 years after the contract had expired--38 contracts had been issued at a total cost of nearly $33 million, almost $25 million more than originally planned, and the work was continuing. In one instance, the Army acquired a computer system that should have been obtained through competition. Neither the Army nor the Marine Corps did a cost analysis, and the government had little assurance that it obtained a fair price for the work. In addition, appropriated funds were spent for purposes other than that for which they were intended, and both the Army and the Marine Corps violated federal regulations governing contracting officers and computer purchases--problems that GAO attributes to poor contract oversight. GAO also discovered conflicts of interest between U.S. Army civilian employees and the contractor.
