Results in Brief: Mi-17 Overhauls Had Significant Cost Overruns and Schedule Delays
OFFICE OF THE INSPECTOR GENERAL (DEPARTMENT OF DEFENSE) ALEXANDRIA VA
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Our objective was to determine whether DoD personnel performed proper oversight, management, and pricing of two Counter Narcoterrorism Technology Program Office CNTPO task orders for the overhaul of Mi-17 helicopters. We found that Army contracting and program management officials did not perform adequate oversight and management of CNTPO contracts for the overhaul of Mi-17 aircraft. Specifically, the contracting officers and program management officials did not adequately support Northrop Grumman Space Mission Systems Northrop Grumman oversight of its subcontractor, AviaBaltika Aviation LtdSaint Petersburg Aircraft Repair Company AVBSPARC. Further, AVBSPARC denied the DoD, Northrop Grumman, and Flight Test Aerospace FTA quality assurance personnel access to its overhaul facility. As a result, AVBSPARC aircraft overhaul took 12 to 20 months longer than planned, failed to identify unsanctioned parts that must be replaced, and cost the U.S. Government 16.4 million in unnecessary costs. The U.S. Army Space and Missile Defense Command, Contracting and Acquisition Management Office CAMO contracting officers did not adequately determine pricing and negotiation for contract modifications to task orders 0021 and 0035. As a result, the contracting officer did not adequately justify that 90.4 million in task order modifications were fair and reasonable. For example, the CAMO contracting officers approved the procurement of aircraft parts from AVBSPARC, at a price that was 29 percent higher than the same set of parts bought from FTA. We recommend that the U.S. Army debarment official consider whether suspension or debarment is warranted for AVBSPARC and its affiliates the Deputy Assistant Secretary of the Army for Procurement review the contracting officers performance at CAMO and Army Contracting Command-Redstone and the Assistant Secretary of the Army for Acquisition, Logistics and Technology conduct a review of project management personnel actions.
- Administration and Management
- Logistics, Military Facilities and Supplies