Acquisition: Air Force Procurement of 60K Tunner Cargo Loader Contractor Logistics Support

Program managers and contracting officials responsible for obtaining performance-based logistics support for equipment in DoD should read this report. It discusses the approval and award of a sole source contract for logistics support of a cargo loader used by the Air Force. Background. On April 1, 2004, the Air Force awarded a sole source contract to Systems Electronics, Inc. for logistics support of the 60K Tunner cargo loader. Air Force personnel use the 60K Tunner to load cargo onto large aircraft. The contract required Systems Electronics, Inc. to provide all of the logistics support needed for the cargo loader for eight years at an estimated total cost of 158 million. On February 11, 2005, the Acting Under Secretary of Defense Acquisition, Technology, and Logistics requested that the DoD Office of Inspector General review the influence and decisions made by Darleen Druyun, the then Principal Deputy Assistant Secretary of the Air Force for Acquisition and Management, on the 60K Tunner logistics support contract. Results. Instead of following Druyuns recommendation to award a 33-year contract valued at 1.7 billion 51.5 million per year average costs, Warner Robins Air Logistics Center contracting officials prepared a sole source justification and approval in April 2003 and awarded an 8-year contract to Systems Electronics, Inc. valued at 158 million with a much lower projected annual cost of l9.8 million per year. However, Druyun influenced 47.2 million in vehicle overhaul requirements included in the contract by selecting Systems Electronics, Inc. to be the source of repair.