Transformation of Department of Defense Contract Closeout


Book Description

The Department of Defense (DoD) has tens of thousands of contracts physically completed but not formally closed-out. At issue are potentially millions of dollars that are obligated on those contracts which could be deobligated, thus making them available for use by DoD. At the request of the Deputy Assistant Secretary of the Navy for Research, Development and Acquisition (ASN(RD & A) Acquisition Management)), our team was forced to chart the current contract closeout process and to recommend ways to improve and transform the process while reducing the current backlog of physically completed contracts. This report identifies the steps necessary to affect contract closeout once a contract becomes physically complete Utilizing data from available DoD and non-DoD sources and interviews from personnel managing and working within the contract closeout process, our team (1) identifies the major causes preventing contracts from closing in a timely manner, (2) provides recommended actions to reduce the size of the overaged inventory of physically completed contracts, and (3) recommends modification to the existing closeout process to include pre-award and administration period actions in order to reduce the number of contracts that become overaged.




Transformation of Department of Defense Contract Closeout


Book Description

The Department of Defense (DoD) has tens of thousands of contracts physically completed but not formally closed-out. At issue are potentially millions of dollars that are obligated on those contracts which could be deobligated, thus making them available for use by DoD. At the request of the Deputy Assistant Secretary of the Navy for Research, Development and Acquisition (ASN(RD&A) Acquisition Management)), our team was forced to chart the current contract closeout process and to recommend ways to improve and transform the process while reducing the current backlog of physically completed contracts. This report identifies the steps necessary to affect contract closeout once a contract becomes physically complete Utilizing data from available DoD and non- DoD sources and interviews from personnel managing and working within the contract closeout process, our team (1) identifies the major causes preventing contracts from closing in a timely manner, (2) provides recommended actions to reduce the size of the overaged inventory of physically completed contracts, and (3) recommends modification to the existing closeout process to include pre- award and administration period actions in order to reduce the number of contracts that become overaged.



















Defense Contract Management


Book Description

The DoD¿s U.S. Army Corps of Engineers awarded the $2.5 billion Restore Iraqi Oil (RIO I) contract to Kellogg Brown & Root in March 2003 in an effort to re-establish Iraq¿s oil infrastructure, & to ensure adequate fuel supplies inside Iraq. RIO I was a cost-plus-award-fee type contract that provided for payment of the contractor¿s costs, a fixed fee determined at inception of the contract, & a potential award fee. The Defense Contract Audit Agency (DCAA) reviewed the 10 RIO I task orders & questioned $221 million in contractor costs. This report determines: how DoD addressed DCAA¿s RIO I audit findings & what factors contributed to DoD¿s decision; & the extent to which DoD paid award fees for RIO I & followed the planned process for making that decision. Ill.




Defense Contracting


Book Description

"Why GAO Did This StudyDOD has a large volume of contractsthat have not been closed on time.Closing a contract includes tasks suchas verifying that the goods andservices were provided and makingfinal payment to the contractor. Closingcontracts within required time framescan limit the government's exposure tocertain financial risks. One reason whysome contracts are not being closed isthe large backlog of incurred costaudits that must first be completed.These audits, conducted by DCAA,ensure that the costs contractors haveincurred are permissible undergovernment regulations.The Senate Armed ServicesCommittee report accompanying theNational Defense Authorization Act forFiscal Year 2012 directed GAO toreview the criteria and procedures forconducting incurred cost audits, amongother things. In response, GAOassessed (1) efforts to reduce thebacklog of incurred cost audits and (2)the challenges DOD faces inaddressing the contract closeoutbacklog. GAO reviewed DCAA'spolicies and procedures for incurredcost audits; analyzed data on the auditand contract closeout backlogs; andinterviewed officials in the militarydepartments and agencies.What GAO RecommendsGAO is recommending that DCAAdevelop a plan to assess its incurredcost audit initiative; that DCMAimprove data on over-age contracts;and that the military departmentsdevelop contract closeout data and"




Guidance for Transitioning to Performance-Based Service Contracting - A Guide for Department of Defense Field Contracting Activities


Book Description

The objective of this thesis is to assess the transition from traditional service contracting to performance-based service contracting at Department of Defense Field Contracting Activities. There has been an increase in spending on services over the past decade that has forced the Federal Government to review its policy on service contracting. In 1991, the Office of Federal Procurement Policy established policy for the acquisition of services using performance-based contracting. Interviews of Government contracting personnel and review of professional literature highlight barriers to performance-based service contracting. These barriers are: management of cultural change, education and training of Government and contractor personnel, adoption of best commercial practices, writing of performance-based statements of work, and the tasks involved in contract administration. This thesis makes recommendations for overcoming these barriers and provides guidance for successful implementation of performance-based service contracting within the Department of Defense.