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U.S. Army and Marine Corps: Allegations of Contracting Irregularities and Conflicts of Interest

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Report Type Reports and Testimonies
Report Date Nov. 23, 1993
Report No. OSI-94-3
Subject
Summary:

This report expands on a July 1993 testimony (GAO/T-OSI-93-2) that concluded that the Army had abused the contract "offloading" process and had circumvented the Competition in Contracting Act of 1984 when it steered a three-year, $8-million contract to the Computer Services Corporation. Neither the Army nor the Marine Corps did an initial costs analysis, and the government had no guarantee that the price for the work was fair. 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. GAO discovered that on at least one independent government cost estimate, costs had been "padded" at the direction of an Army employee who was married to a Computer Services Corporation employee.

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