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Hotline Allegation on the Procurement of F1OO-PW-22OE Modification Kits
INSPECTOR GENERAL DEPT OF DEFENSE ARLINGTON VA
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The audit was performed in response to a DoD Hot line complaint that the Air Force was using other than competitive procurement practices to purchase FlOO-PW-220E Modification Kits for F-15 and F-16 aircraft engines and related services from a prime contractor during the initial phase of the engine modification program. The complainant alleged that it would be more economical to procure kit components directly from sources other than the prime contractor. The initial procurement was expected to cost about 379.7 million over 5 years. To complete the modification program, the Air Force planned to purchase an additional 2,240 kits over 80 percent of the engine modification program through a combination of breakout and competition. The law allows an agency to use other than competition when there is a limited number of sources or when the requirement is urgent and compelling. The audit objective was to evaluate the propriety of the alleged restrictive that is, sole source procurement of kits and related services from a prime contractor by the San Antonio Air Logistics Center SA-ALC although some components in the kits had previously been competitively procured from sources other than the prime contractor. The audit also evaluated applicable internal controls.
APPROVED FOR PUBLIC RELEASE