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Accession Number ADA568181
Title Results in Brief: Mi-17 Overhauls Had Significant Cost Overruns and Schedule Delays.
Publication Date Sep 2012
Media Count 4p
Personal Author N/A
Abstract Our objective was to determine whether DoD personnel performed proper oversight, management, and pricing of two Counter Narcoterrorism Technology Program Office (CNTPO) task orders for the overhaul of Mi-17 helicopters. We found that Army contracting and program management officials did not perform adequate oversight and management of CNTPO contracts for the overhaul of Mi-17 aircraft. Specifically, the contracting officers and program management officials did not adequately support Northrop Grumman Space & Mission Systems' (Northrop Grumman) oversight of its subcontractor, AviaBaltika Aviation Ltd/Saint Petersburg Aircraft Repair Company (AVB/SPARC). Further, AVB/SPARC denied the DoD, Northrop Grumman, and Flight Test Aerospace (FTA) quality assurance personnel access to its overhaul facility. As a result, AVB/SPARC aircraft overhaul took 12 to 20 months longer than planned, failed to identify unsanctioned parts that must be replaced, and cost the U.S. Government $16.4 million in unnecessary costs. The U.S. Army Space and Missile Defense Command, Contracting and Acquisition Management Office (CAMO) contracting officers did not adequately determine pricing and negotiation for contract modifications to task orders 0021 and 0035. As a result, the contracting officer did not adequately justify that $90.4 million in task order modifications were fair and reasonable. For example, the CAMO contracting officers approved the procurement of aircraft parts from AVB/SPARC, at a price that was 29 percent higher than the same set of parts bought from FTA. We recommend that the U.S. Army debarment official consider whether suspension or debarment is warranted for AVB/SPARC and its affiliates; the Deputy Assistant Secretary of the Army for Procurement review the contracting officers' performance at CAMO and Army Contracting Command-Redstone; and the Assistant Secretary of the Army for Acquisition, Logistics and Technology conduct a review of project management personnel actions.
Keywords Army procurement
Avb/sparc(Aviabaltika aviation ltd/saint petersburg aircraft
Contract administration
Cost analysis
Cost overruns
Mi-17 aircraft overhauls
Nonstandard parts
Northrop grumman space & mission systems
Parts overpayment
Pricing problems
Project management
Project oversight
Quality assurance
Schedule delays
Subcontractor oversight
Task order modifications
Unauthorized parts
Unnecessary costs

Source Agency Non Paid ADAS
NTIS Subject Category 51C - Aircraft
70B - Management Practice
74E - Logistics, Military Facilities, & Supplies
Corporate Author Department of Defense, Arlington, VA. Office of the Deputy Inspector General for Auditing.
Document Type Technical report
Title Note Audit brief.
NTIS Issue Number 1311
Contract Number N/A

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