Procurement Irregularities at the U.S. Army Missile Command and the U.S. Army Strategic Defense Command, Huntsville, Alabama

Gao ID: T-OSI-88-5 July 13, 1988

GAO discussed irregularities that occurred in three Army procurements. GAO found that the first procurement's irregularities included: (1) criminal activity; (2) procedures that allowed a contract specification preparer to also evaluate bids; and (3) either unauthorized release or corporate preparation of government estimates. GAO found that the second procurement's irregularities included: (1) falsification of labor records; (2) improper disposal of government materials; (3) excessive labor charges; (4) grossly inflated labor costs; (5) contract violations; and (6) misrepresentation of accounting information. GAO found that an Army official involved in this procurement showed favoritism toward a specific contractor. GAO noted that the Army: (1) was investigating some of the violations; and (2) had acted to correct system weaknesses and reprimand personnel who acted improperly.



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