Johnston Atoll Contractor Performance

Gao ID: NSIAD-96-22R October 6, 1995

GAO reviewed the performance of the Johnston Atoll operation and maintenance contractor. GAO noted that: (1) the operation and maintenance contractor's performance rating dropped by about 25 percent between 1987 and 1991; (2) in 1991, the Army encouraged the contractor to improve its performance by offering financial incentives; (3) although the contractor's performance did not significantly improve between 1992 and 1994, it received an additional $5 million in award fees; (4) the contract award fee structure, delays in determining award fees, and ineffective communications resulted in lower than expected performance levels; and (5) although the Army and the contractor are working together to improve facility operations, management improvements could be enhanced if the Army adopted a management team approach called partnering at the facility.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: David R. Warren Team: Government Accountability Office: Defense Capabilities and Management Phone: (202) 512-8412


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