Military Sealift Command Contracts

Contract Abuses Resulted in Poorly Maintained Ships, Unqualified Crews, and Increased Cost to Government Gao ID: T-OSI-95-3 October 12, 1994

The Navy depends upon a privately run sealift tanker fleet to transport jet fuel and other petroleum products to ports worldwide. A GAO review found understaffed and unqualified crews--some with felony records; deteriorating vessels plagued by everything from massive oil leaks to inoperable life boats; and poor oversight by the Military Sealift Command. The lack of maintenance, which harmed the ships' safety and mission readiness, ended up costing the federal government an additional $20 million. Weaknesses in the Command's contract administration included the absence of (1) a program manager, (2) a written designation of departmental responsibilities for the program, and (3) a Contracting Officer's Technical Representative to monitor the performance of the contractor operating the nine tankers from 1990 until 1993.



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