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DOD I.G.: 'Audit of the Defense Logistics Agency's Sole Source Captains of Industry Strategic Support Contracts'

Feb 21, 2021 - Targeted News Service
Mergers and Acquisitions

The Defense Inspector General issued the following audit report (No. DODIG-2021-053) on Feb. 11, 2021, entitled "Audit of the Defense Logistics Agency's Sole Source Captains of Industry Strategic Support Contracts":

Here are excerpts:

Objective

The objective of this audit was to determine whether the Defense Logistics Agency's (DLA) sole source, Captains of Industry (COI) strategic support contracts are achieving cost savings, value, and benefits for the DoD.

Background

COI contracts use performance-based outcomes to provide increased warfighter support by improving the availability of spare parts and the response time for spare parts orders. DLA Aviation has 13 COI contracts, with a total estimated value of $55.6 billion. We reviewed the DLA's COI contracts with Boeing (SPRPA1-14-D-002U) and Moog (SPE4AX-17-D-9415). The elements of performance-based support on the Boeing COI contract include inventory investment and ownership, material management, forecasting, storage, and transportation. We reviewed three performance-based contract line items (CLINs) on the Boeing COI contract: CLIN 0001, which includes spare parts for multiple weapon systems; CLIN 0004, which provides F-15 support; and CLIN 0026, which provides F/A 18 sup...