The Department of Defense spent nearly $270 billion on contracts for goods and services in fiscal 2005 — double what it spent in fiscal 2000, and the Government Accountability Office, citing vulnerabilities to contracting fraud, waste, and abuse, has called on DoD to ensure that it buys the right things the right way.
It cited weaknesses in five areas — sustained senior leadership, a capable acquisition workforce, adequate pricing, appropriate contracting approaches and techniques, and sufficient contract surveillance — as reasons for why it has listed DoD contract management as a high-risk area since 1992 and continues to do so.
Lack of commitment to sound acquisition practices among senior leadership, more expensive fast-tracked contract awards, and increased demand on the acquisition workforce have led to vulnerabilities in contract pricing and competition and in the selection of the most appropriate contracting techniques, according to GAO-06-838R.
It said that some practices have led to insufficient contract surveillance, and noted that the Defense Science Board concluded in March 2005 — after investigating the Air Force’s Boeing tanker-lease scandal — that the department would be unable to prevent similar, future contract malfeasance.