Response to Congressional Requests on the Water Delivery Contract Between the Lipsey Mountain Spring Water Company and the United States Army Corps of Engineers

Congressman Christopher Shays requested that the DoD Office of Inspector General review the award process of the contract between the Lipsey Mountain Spring Water Company and the United States Army Corps of Engineers for the procurement and delivery of emergency water. He also requested a review of the Lipsey Mountain Spring Water Company s ability to meet contract requirements for supplying water in the event of a domestic emergency. In addition, Congressman Bennie Thompson requested a determination on whether the Lipsey Mountain Spring Water Company owed TRC, Incorporated, a subcontractor, several million dollars. This report will be followed by a second report that addresses other issues identified in the administration of the water delivery contract. These reports are part of a series of reports that will be issued by the DoD Office of Inspector General discussing the use of DoD resources in support of Hurricane Katrina recovery efforts. The contract between the Lipsey Mountain Spring Water Company and the United States Army Corps of Engineers for the procurement and delivery of water was properly awarded. The Lipsey Mountain Spring Water Company delivered emergency water to specific sites throughout the United States since April 2003 however, the company did not consistently meet time performance requirements of the contract. In addition, the Lipsey Mountain Spring Water Company might not be capable of functioning as the water supplier in an emergency outside the continental United States. Finally, the Lipsey Mountain Spring Water Company no longer owes several million dollars to TRC, Incorporated.