U.S. Army and Marine Corps:

Allegations of Contracting Irregularities and Conflicts of Interest

OSI-94-3: Published: Nov 23, 1993. Publicly Released: Nov 23, 1993.

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Pursuant to a congressional request, GAO investigated allegations of contracting irregularities and conflicts of interest involving the Army and the Marine Corps, focusing on: (1) the Army's abuse of contract offloads and circumvention of the Competition in Contracting Act (CICA); and (2) program management controls and oversight.

GAO found that: (1) the Army has placed orders for subtasks under an expired Marine Corps contract for engineering support services and failed to obtain prior approval for those subtasks; (2) the Army's acquisition and installation of a training system is outside the scope of the contract; (3) the Army has circumvented CICA by offloading the procurement onto the Marine Corps' contract; (4) the Army and the Marine Corps have failed to perform a cost analysis before offloading the tasks and follow regulations to determine the propriety of the order; (5) the Army has used appropriated funds for other than their intended purposes; (6) the Army and Marine Corps have failed to keep accurate records; (7) two government employees whose spouses are contractor employees have substantial involvement and financial responsibilities concerning the procurement; and (8) a former Army officer hired by the contractor has participated in contract negotiations.

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