The Army overpaid for communications gear for Afghan forces, according to an audit by the Defense Department inspector general.
The IG reviewed contracts between the Army and Datron World Communications Inc. Under scrutiny were 37 contract actions for 127 items valued at approximately $328 million. The IG identified 75 items with associated commercial sales, valued at approximately $219 million. The Army overpaid $3.3 million for those 75 items, auditors found.
“Contracting officers did not conduct sufficient pre- or post-award price analysis,” the audit found. “Additionally, contracting officers did not obtain the most favored customer price on 40 of 75 commercial sales items.”
The IG faulted Army contracting officers for not verifying that Datron’s prices were fair and reasonable. Nor did they adequately review price changes authorized by the contract, enforce the most favored customer clause or obtain sales data.