Procurement Policy for Armored Vehicles

Congresswoman Louise M. Slaughter requested that the Inspector General IG, DoD review the DoD procurement history for body armor and armored vehicles and determine whether officials properly followed contracting policies. Congresswoman Slaughter also requested specific information on why DoD issued contracts to Force Protection, Inc., and Armor Holdings, Inc., for armored vehicles. This report addresses armored vehicles, specifically the Buffalo Mine Protected Clearance Vehicle, the Cougar, the Joint Explosive Ordnance Disposal Rapid Response Vehicle JERRV, and the High Mobility Multipurpose Wheeled Vehicle HMMWV. The Marine Corps Systems Command MCSC awarded sole-source contracts to Force Protection, Inc., for the JERRV even though MCSC officials knew other sources were available for competition. In addition, TACOM Life Cycle Management Command LCMC and MCSC officials did not adequately justify the commercial nature of three commercial contracts with Force Protection, Inc., for the Cougar and the Buffalo Mine Protected Clearance Vehicle. As a result, the MCSC continued to award contracts for armored vehicles to Force Protection, Inc., even though Force Protection, Inc., did not perform as a responsible contractor and repeatedly failed to meet contractual delivery schedules for getting vehicles to the theater. In addition, TACOM LCMC and MCSC decisions to award commercial contracts to Force Protection, Inc., may have limited the Governments ability to ensure it paid fair and reasonable prices for the contracts. The MCSC should continue to calculate and assess any additional liquidated damages for late delivery of vehicles on contract M67854-05-D-5091 and compete future contracts for the JERRV. The TACOM LCMC awarded a contract for crew protection kits to Simula Aerospace and Defense Group, Inc., an Armor Holdings, Inc., subsidiary. The subsidiary did not meet the Federal Acquisition Regulation definition of a responsible prospective contractor.