U.S. Army and Marine Corps:

Allegation of Contracting Irregularities and Conflicts of Interest

T-OSI-93-2: Published: Jul 30, 1993. Publicly Released: Jul 30, 1993.

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GAO discussed its investigation into allegations of Army and Marine Corps contracting irregularities and conflicts of interest. GAO noted that: (1) an Army directorate placed orders under a Marine Corps contract for automated data processing equipment that were outside that contract's scope, in amounts exceeding the contract maximum, and after the contract expired; (2) the directorate violated the Competition in Contracting Act, since it should have obtained the items through open competition; (3) the Army directorate and the Marine Corps contracting office ignored the Federal Acquisition Regulation provisions for management controls over the contract and failed to verify the need for the orders and the propriety of using Army funds for the equipment's acquisition; (4) the Army failed to take remedial action when an internal investigation revealed the contract improprieties; (5) two civilian employees of the offices had conflicts of interest in that their spouses were employed by the contractor, and another employee inflated contractor expenses on cost estimates at the Army's direction; and (6) it referred the matter for criminal investigation.

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