10-008.pdf (application/pdf Object)

The State Department cannot account for $1 billion it has paid to Dyncorp.

Summary of Report: SIGIR 10-008
Why SIGIR Did this Study
The Department of State (DoS) Bureau of
International Narcotics and Law Enforcement
Affairs (INL) contract with DynCorp
International includes task orders to support the
Department of Defense’s (DoD) Iraqi police
training program. Under the task orders,
DynCorp has provided police advisors and
in-country support for those and other advisors.
INL’s Afghanistan, Iraq, Jordan Support
Division is primarily responsible for oversight
of the DynCorp contract. The Special Inspector
General for Iraq Reconstruction (SIGIR)
examined INL’s oversight of the task orders
because they cost over $2.5 billion and INL has
had a history of weak oversight of the task
orders. Specifically, SIGIR examined: (1) the
costs, funding, and award process for the largest
and most recent task orders; (2) DoS oversight
of the task orders; and (3) the status of INL’s
implementation of SIGIR’s prior
recommendations.

What SIGIR Recommends

Because weak contract administration and
oversight have been long-standing issues that
INL has not corrected, SIGIR recommends that
the Deputy Secretary of State for Management
and Resources direct an immediate examination
of the Afghanistan, Iraq, Jordan Support (AIJS)
Division’s personnel and operations to
determine if the Division is structured, staffed,
and managed to effectively and efficiently
oversee the contracts under its responsibilities.
Until such an examination can be conducted,
SIGIR recommends that the Assistant Secretary,
INL, direct the Chief of AIJS to develop
detailed guidance for ICORs, assign specific
responsibilities to each ICOR, determine how
many ICORs are needed in Iraq to accomplish
assigned responsibilities, and staff the invoice
reconciliation effort to validate historical
invoices within the next 2 years.

Management Comments and Audit
Response

INL agreed with SIGIR’s recommendations.
It did not agree with SIGIR’s position that
$2.5 billion in U.S. funds are vulnerable to
waste and fraud. Because of the serious
control weaknesses identified in this and prior
audits, SIGIR maintains its position.