There are not enough hours in the days to track the fraud of every DoD contractor. But thanks to Ms Sparky readers they keep me informed. The 16,OOO percent I referred to in the post title is the mark up charged for the bag of 10 washers. Let me know if I did the math wrong!!
Audit finds Iraq contractor overbilled for vehicle parts
By Walter Pincus
Washington Post Staff Writer
Friday, October 30, 2009
A defense contractor that supplied vehicle parts for the Iraqi army sought reimbursements from the U.S. military far in excess of the cost of the items, according to a new report by the special inspector general for Iraq reconstruction.
The contractor, Aecom Government Services, charged $237 for a vehicle side mirror that was supposed to cost $14.88, according to the report. The company also submitted invoices to the U.S. military in Iraq seeking reimbursements of $196.50 for a bag of 10 washers that was supposed to cost $1.22, $10 for a fuse that should have cost 45 cents and $210 for an inner tube that was supposed to cost $24.09.
Aecom officials disputed the allegations, telling auditors that the overcharging was the result of “billing errors” that “occurred early in the contract,” according to the report, scheduled for release Friday. The company said that “cumulative adjustments were made.”
Paul J. Gennaro, a senior vice president of Aecom, said Thursday that the company had “self-identified and corrected” the issues, “making an immediate repayment over two years ago — to the client’s satisfaction.”
Stuart W. Bowen Jr., the special inspector general, said in the report that the findings point to larger issues with government contracts issued for work in Iraq. Preliminary audits of 22,000 Defense Department transactions involving about $10.7 billion have identified not just overpayments by the government, but also duplicate payments, as well as payments to fictitious vendors and addresses.
The preliminary findings have prompted a decision to examine all financial transactions related to the major U.S. programs in Iraq — spending that totaled $35.2 billion as of Sept. 30, 2008. The report said particular attention will be paid to programs “that afford easy access to cash,” such as the military’s $3.6 billion Commander’s Emergency Response Program.
Aecom Government Services’ contract called for it to buy repair parts for Iraqi military units as part of a program to make the units self-sufficient in logistics. The firm won the contract based in part on the per-item unit price it quoted, plus an allowable markup.
Bowen’s auditors reviewed four of 139 invoices Aecom submitted for repayment from July 2005 to September 2009; they totaled $29.9 million. From those, the audit identified “about $4.1 million in potential overbillings.”
The auditors disputed assertions that Aecom had repaid the government in full. In an interview, Daniel Kopp, a spokesman for Bowen, cited the case of the washers.
“Based on the documentation Aecom provided us, they’ve never reimbursed the government for the washers,” he said.
Contractors such as Aecom have their invoices reviewed by Army Contracting Command personnel in Rock Island, Ill. But Bowen’s auditors found that the command “did not have enough experienced personnel to review invoices thoroughly, leaving the U.S. government vulnerable to undetected overcharges.” Over time, additional personnel were transferred to Rock Island, and the review process improved. Thereafter, the contracting office “denied payment of as much as 33% from invoices, compared to only 0.1% from invoices prior to that time,” the report said.
On its Web site this month, Aecom Government Services announced a $78.8 million six-month extension of its contract with the U.S. Army to support operations in Afghanistan, which entails providing general support maintenance and running maintenance facilities at two military bases as well as forward operating bases and satellite locations. The Los Angeles-based parent company, Aecom, provides worldwide technical and management services and reported $6.1 billion in revenue for the year ending June 30, with operations in more than 100 countries. (click HERE for original article)
AECOM wins US$10.5-million task order from U.S. Army Engineering and Support Center
2009-11-16 00:00:00.0
AECOM announces that it has won a US$10.5-million task order to provide energy-efficiency services at a U.S. Navy facility in San Diego.
LOS ANGELES, Nov 16, 2009 (BUSINESS WIRE) — AECOM Technology Corporation (NYSE: ACM), a leading provider of professional technical and management support services for government and commercial clients around the world, announced today that it has won a US$10.5-million task order to provide energy-efficiency services at a U.S. Navy facility in San Diego.
The work, which will include a base-wide lighting retrofit, construction of two new ultra-efficient central chilled water plants, expansion of the existing energy-management-control system and the installation of a photovoltaic system, will be conducted under AECOM’s indefinite delivery/indefinite quantity contract with the U.S. Army Engineering and Support Center.
The contract has a maximum value of US$50 million and allows AECOM to compete for design-build, energy-efficiency and renewable-energy projects at any federal facility within the continental United States, Alaska, Hawaii, the District of Columbia, and U.S. territories and possessions.
When complete, the project is expected to reduce the facility’s annual utility consumption by 4.7 million kilowatt hours, 48,000 therms, and 10.3 million gallons of water, resulting in annual utility, operations and maintenance cost savings of more than US$900,000. The project will also eliminate more than 3,600 metric tons of carbon dioxide emissions every year.
About AECOM
AECOM (NYSE: ACM) is a global provider of professional technical and management support services to a broad range of markets, including transportation, facilities, environmental, energy, water and government. With approximately 45,000 employees around the world, AECOM is a leader in all of the key markets that it serves. AECOM provides a blend of global reach, local knowledge, innovation, and technical excellence in delivering solutions that enhance and sustain the world’s built, natural, and social environments. A Fortune 500 company, AECOM serves clients in more than 100 countries and had revenue of $6.1 billion during its fiscal year 2009. More information on AECOM and its services can be found at www.aecom.com.
Forward-Looking Statements: All statements in this press release other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any statements of plans for future operations or expected revenue. Actual results could differ materially from those projected or assumed in any of our forward-looking statements. Important factors that could cause actual results to differ materially from our forward-looking statements are set forth in our quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2009, and our other reports filed with the U.S. Securities and Exchange Commission. AECOM does not intend, and undertakes no obligation, to update any forward-looking statement.
NR 09-1104
SOURCE: AECOM Technology Corporation
AECOMPaul GennaroSVP & Chief Communications Officer212-973-3167Paul.Gennaro@aecom.com
(Click HERE for original article)
One would think if the Army Contracting Command didn’t have enough experienced personnel to review invoices thoroughly and this was leaving the U.S. government vulnerable to undetected overcharges that they would get the experienced personnel. Increase wages if necessary. If not…just fire EVERYONE in the ACC and contract it out.
Ms Sparky
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