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Management Assistance Report: Improper Use of Overtime and Incentive Fees Under the Department of State Baghdad Life Support Services (BLiSS) Contract

AUD-MERO-16-08
    Report Contents
    Unclassified
    Recommendation Number
    1
    Closed Implemented Significant

    OIG recommends that the Bureau of Administration, Office of Logistics Management, Office of Acquisitions Management, terminate task order SAQMMA15F3018 awarded to Pacific Architects and Engineering Government Services, Inc., for incentive pay.

    Recommendation Number
    2
    Closed Implemented $2,642,451 Significant

    OIG recommends that the Bureau of Administration, Office of Logistics Management, Office of Acquisitions Management, deobligate all remaining unspent funds awarded against task orders SAQMMA14F2036, SAQMMA14F3785, SAQMMA15F0988, and SAQMMA15F3018, and inform Pacific Architects and Engineering Government Services, Inc., that expenses can no longer be incurred against these task orders.

    Recommendation Number
    3
    Closed Implemented Significant

    OIG recommends that the Bureau of Administration, Office of Logistics Management, Office of Acquisitions Management, inform contracting officers and other contract management personnel that award and administer contracts in countries with high risk security environments to discontinue the practice of awarding overtime and incentive fees for firm-fixed-price labor contract line items unless such awards include a documented analysis of the validated need, cost-benefit, and merits in accordance with the Federal Acquisition Regulation.

    Recommendation Number
    4
    Closed Implemented Significant

    OIG recommends that the Bureau of Administration, Office of Logistics Management, Office of Acquisitions Management, review contracts performed in Iraq and other countries with high-risk security environments and, if the awards cannot be justified with a documented analysis of the validated need, cost-benefit, and merits of such an award in accordance with the Federal Acquisition Regulation, consider terminating task orders, deobligating all remaining unspent funds, and informing contractors that expenses cannot be incurred against these task orders.