INTEGRITY INDEPENDENCE EXCELLENCE
U.S. Department of Defense
Report No. DODIG-2019-069
APRIL 1, 2019
Audit of the Army’s Oversight
of National Afghan Trucking
Services 3.0 Contracts
i
Audit of the Army’s Oversight of National Afghan
Trucking Services 3.0 Contracts
Objective
Background
1
Indefinite-delivery indefinite-quantity contracts may
be used to acquire supplies and services when the exact
times and exact quantities of future deliveries are not
known at the time of contract award.
April 1, 2019
Finding
2
A transportation movement request represents a single mission and includes
mission information, such as the required delivery date, required truck type, and
origin and destination locations.
Background (cont’d)
ii
Audit of the Army’s Oversight of National Afghan
Trucking Services 3.0 Contracts
Recommendations
Management Actions Taken
Finding (cont’d)
iii
Audit of the Army’s Oversight of National Afghan
Trucking Services 3.0 Contracts
3
The GS-1102 series includes positions for managing, supervising, and
developing policies for Government contracting. This series includes the
position titles such as contract specialist, contract administrator, and
contract price/cost analyst.
Management Actions Taken (cont’d)
iv
Recommendations Table
Management
Recommendations
Unresolved
Recommendations
Resolved
Recommendations
Closed
Commander, Army Contracting
Command–Afghanistan
None 1.b and 1.c 1.a and 1.d
Note: The following categories are used to describe agency management’s comments to individual recommendations.
• Unresolved – Management has not agreed to implement the recommendation or has not proposed actions that
will address the recommendation.
• Resolved – Management agreed to implement the recommendation or has proposed actions that will address the
underlying finding that generated the recommendation.
• Closed – OIG verified that the agreed upon corrective actions were implemented.
v
INSPECTOR GENERAL
DEPARTMENT OF DEFENSE
4800 MARK CENTER DRIVE
ALEXANDRIA, VIRGINIA 22350-1500
vi
Contents
Introduction
Finding. The Army Did Not Provide Complete
Oversight of the National Afghan Trucking
Services 3.0 Contracts
Appendixes
Acronyms and Abbreviations
Introduction
1
Introduction
Objective
Background
National Afghan Trucking 3.0 Service Contractors
Figure 1. NAT 3.0 Trucks at the National Afghan Trucking Yard
Source: The DoD Office of Inspector General (OIG).
Introduction
2
Table. NAT 3.0 Contracts
Contract Number Contractor
Period of
Performance*
Customer
(Task Order 1)
Customer
(Task Order 2)
Expenditures
as of
December 2018
W52P1J-17-D-4000 EBITC
March 16, 2017–
March 15, 2021*
USG CSTC-A $17,375,200
W52P1J-17-D-4001 DNL
March 16, 2017–
March 15, 2021*
USG CSTC-A $16,721,140
W52P1J-18-D-4002 RBT
March 16, 2018–
March 15, 2021*
USG CSTC-A $7,237,223
Legend:
CSTC-A = Combined Security Transition Command–Afghanistan
USG = U.S. Government
EBITC = ETIFAQ Bamyan International Transportation Company
DNL = Durukhshesh Noor Logistics Services
RBT = Red Bobtail Transport
*Contingent based on availability of funds
Source: The DoD OIG.
4
Global Distribution Management System is a map-centric software application that tracks commercial trucks by
using transponders placed on the truck. NAT 3.0 contracting officer’s representatives use the Global Distribution
Management System to track the NAT 3.0 contractors’ transportation movements.
5
Indefinite-delivery indefinite-quantity contracts may be used to acquire supplies and services when the exact times and
exact quantities of future deliveries are not known at the time of contract award.
6
A transportation movement request represents a single mission and includes mission information, such as the required
delivery date, required truck type, and origin and destination locations.
Introduction
3
Contract Oversight Responsibilities
Army Contracting Command
7
Federal Acquisition Regulation Part 46, “Quality Assurance,” Subpart 46.4, “Government Contract Quality
Assurance,”46.401, “General,” states that the QASP should be prepared in conjunction with the statement of work.
The plans should specify all work requiring surveillance and the method of surveillance.
8
Federal Acquisition Regulation Part 1, “Federal Acquisition Regulations System,” Subpart 1.6, “Career Development,
Contracting Authority, and Responsibilities.”
Introduction
4
Resolute Support Sustainment Brigade
Contract Officer’s Representative Surveillance Responsibilities
Introduction
5
Contract Officer’s Representative Invoice Review Responsibilities
9
The dates the contractors provide include the dates the contractors claim to have arrived at the origin and destination
and loaded and unloaded the cargo.
Figure 2. COR Performs Maintenance Inspection on a NAT 3.0 Truck
Source: The DoD OIG.
Introduction
6
Review of Internal Controls
Finding
7
Finding
The Army Did Not Provide Complete Oversight of the
National Afghan Trucking Services 3.0 Contracts
Finding
8
The Army Did Not Fully Monitor Contractor Cost or
Contractor Performance
CORs Did Not Review or Verify All Contractor Data
Before Approving Invoices
The CORs did not review
all transportation
movement requests in the
contractor-submitted invoices.
The CORs approved costs
that were not allowed by
the contract.
Finding
9
10
$1.3 million is 25 percent of the dollar value of the 1,363 Afghan Public Protection Force escorted transportation
movement request that missed the required delivery date. The total dollar value of the 1,363 transportation movement
requests was $5,183,491.28.
Between June and August 2018,
the CORs waived the 25-percent
deduction, valued at $1.3 million,
based upon contractor-provided
performance reports.
Finding
10
The CORs and ACO Did Not Develop an Invoice
Review Process to Verify Costs and CORs Lacked
Specialized Experience
11
The RSSB Continuity Book is a document that contains procedures to guide CORs in how to conduct invoice reviews.
12
In June 2018, the ACC-Rock Island contracting officer updated the performance work statement to authorize the CORs
and ACO to waive deductions from a contractor’s payment for delays attributed to Afghan Public Protection Force
security escorted movements. The update was not reflected in the procedures outlined in the RSSB COR Continuity Book.
The QASP did not include
procedures to guide the CORs
in performing transportation
movement request reviews.
Finding
11
CORs Did Not Perform All Required
Contract Surveillance
CORs Did Not Complete Monthly Surveillance Checklist and
Monthly Status Reports
Finding
12
ACOs Accepted Only One Form of Surveillance
Although the ACO helped develop
and approved the QASP, the
ACO did not require the CORs
to use the surveillance methods
outlined in the QASP.
Finding
13
The Army Does Not Have Assurance That Contractors
Complied With Contract Requirements
13
The Federal Acquisition Regulation defines a non-personal services contract as a contract under which the personnel
rendering the services are not subject, either by the contract’s terms or by the manner of its administration, to the
supervision and control usually prevailing in relationships between the Government and its employees.
The Army does not have assurance
that the NAT 3.0 contractors’
services, valued at $41.3 million
as of December 2018, complied
with contract requirements for
the delivery of supplies and assets.
Finding
14
Recommendations
We recommend that the Army Contracting Command–Afghanistan Commander:
a. Instruct the contracting officer’s representatives and administrative
contracting officer to review and update the quality assurance
surveillance plan to include approved oversight guidance for invoice
reviews that establishes procedures for reviewing transportation
movement requests to determine whether costs are accurate.
b. Develop a program and requirement to train National Afghan Trucking
3.0 contracting officer’s representatives responsible for reviewing
invoices, or designate a qualified official to perform invoice reviews to
verify that costs associated with contractors’ performance are accurate.
c. Review the May and June 2018 invoices to determine the amount overpaid
to as a result of using the incorrect performance work statement and
request that the contractors return the funds paid in error.
d. Develop procedures that identify the required surveillance documents
the administrative contracting officer should review each month, and to
ensure that contracting officer’s representatives perform the required
monthly surveillance and upload the documents to Contracting Officer’s
Representatives Tracking Tool as required.
14
The contracts are contingent on the availability of funds.
Finding
15
Management Actions Taken
Finding
16
Appendixes
17
Appendix A
Scope and Methodology
Methodology for Determining Contract Oversight Effectiveness
Appendixes
18
Use of Computer-Processed Data
Prior Coverage
DoD OIG
Appendixes
19
Appendixes
20
Army Audit Agency
Appendixes
21
Appendix B
Potential Monetary Benefits
Recommendation Type Of Benefit Amount Of Benefit Account
1.c Questioned Costs $323,988.87
Multiple contracts
will be impacted
22
Acronyms and Abbreviations
Acronyms and Abbreviations
Acronym Definition
ACC Army Contracting Command
ACO Administrative Contracting Officer
COR Contracting Officer’s Representative
CORT Tool Contracting Officer’s Representative Tracking Tool
NAT 3.0 National Afghan Trucking 3.0
QASP Quality Assurance Surveillance Plan
RSSB Resolute Support Sustainment Brigade
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