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Followup Audit: DLA Officials Took Appropriate Actions to Address Concerns With Repair Parts for the High Mobility Multipurpose Wheeled Vehicle

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Technical Report

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Department of Defense Inspector General Alexandria United States

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Objective. We determined whether the Contracting Officer, Defense Logistics Agency DLALand and Maritime, implemented Recommendations B.2.a and b in Report No. DODIG-2014-054 as agreed. Report No. DODIG-2014-054, Defense Logistics Agency Land and Maritime Paid Too Much for High Mobility Multipurpose Wheeled Vehicle Repair Parts, HMMWV was issued on April 4, 2014. The audit identified 49 repair parts for the HMMWV available for purchase through the Integrated Logistics Partnership contract that required a unitof-issue conversion. This conversion was required when the contractors unit of issue differed from the Governments. Recommendation B.2.a pertained to the identification of any authorized overpayments for any other HMMWV repair parts. Recommendation B.2.b pertained to the alignment of AM Generals repair part prices with the Government standard units of issue on future delivery orders and invoices. Finding. We determined that DLA Land and Maritime officials implemented Recommendation B.2.a as a greed. DLA Land and Maritime officials reconciled billing records for HMMWV repair parts that required a unitofissue conversion from February 2009 through September 2013 as agreed to in Recommendation B .2.a. Further, DLA Land and Maritime officials conducted monthly reconciliations through October 2015 to close out billing transactions for both the Integrated Logistics Partnership and follow-on contracts. DLA Land and Maritime found, and we confirmed, that no further overpayments occurred. In addition, we confirmed that DLA Land and Maritime officials issued 1.62 million in credit memos against AM General, and that 1.62 million was credited to the Government. We determined that DLA Land and Maritime officials did not fully implement Recommendation B.2.b as agreed. Our review of DLA Land and Maritimes billing reconciliations indicated that the unitof-issue conversion problem still existed.

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