Wamar International Successfully Completed Contracts, but Unanticipated Problems Affected Costs and Schedules

SIGIR found that Wamar successfully completed the three contracts and that JCC-IA and GRD actively carried out their management and oversight responsibilities, though some management and contract problems affected costs and schedules. The 2004 contract, competitively awarded to Wamar to purchase and deliver armored vehicles W914NS-04-D-0121, was mostly successful although eight vehicles were stolen and other vehicles were delivered late. Wamar replaced the stolen vehicles at no cost to the government. At completion of the 2 12-year contract in December 2006, Wamar had successfully delivered 245 armored vehicles to U.S. and Iraqi forces at a cost of 32.96 million. The cost of some vehicles increased because of changes in U.S. government requirements, including adding special features to the basic vehicle. Further, after the theft of the vehicles, the U.S. government decided to fly the vehicles into Baghdad to prevent further thefts at a cost of about 10,000 per vehicle. This added about 2.0 million to total contract costs. The two contracts awarded to Wamar to inspect and repair six turbine generators W9GXY-06-C-0050 and W9GXY-07-0014 were generally successful even though the work cost more and took longer to complete than planned. Contract documents revealed that the two inspection contracts were competitively awarded and that Wamars proposals represented the best overall value to the U.S. government and to the Iraq Ministry of Electricity MoE. However, costs under the first contract, awarded in 2006, increased from 24.01 million to 34.82 million, and the performance period for the inspections was extended from fall 2006 to September 2008. Costs under the second contract, awarded in 2007, increased from 14.92 million to 25.42 million, and the performance period for the inspections was extended from fall 2007 to September 2008.