Contract Management: Selected DOD Consulting Services (Correspondence,
06/23/2000, GAO/NSIAD-00-183R).

Pursuant to a legislative requirement, GAO reviewed the Department of
Defense's (DOD) contract management, focusing on contracts for advisory
and assistance services and other services.

GAO noted that: (1) GAO reviewed 30 contracts associated with the
largest fiscal year 1999 obligations for advisory and assistance and
other services and described these services obtained by: (a) the Office
of the Secretary of Defense; (b) the Secretariats of the Air Force, the
Navy, and the Army; and (c) Headquarters, Defense Logistics Agency; and
(2) about $36 million was obligated for these contract services.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  NSIAD-00-183R
     TITLE:  Contract Management: Selected DOD Consulting Services
      DATE:  06/23/2000
   SUBJECT:  Contract administration
	     Defense procurement
	     Service contracts

******************************************************************
** This file contains an ASCII representation of the text of a  **
** GAO Testimony.                                               **
**                                                              **
** No attempt has been made to display graphic images, although **
** figure captions are reproduced.  Tables are included, but    **
** may not resemble those in the printed version.               **
**                                                              **
** Please see the PDF (Portable Document Format) file, when     **
** available, for a complete electronic file of the printed     **
** document's contents.                                         **
**                                                              **
******************************************************************

GAO/NSIAD-00-183R

GAO/ NSIAD- 00- 183R Selected DOD Consulting Services United States General
Accounting Office

Washington, DC 20548 National Security and

International Affairs Division

B- 285538 June 23, 2000 The Honorable John Warner Chairman The Honorable
Carl Levin Ranking Minority Member Committee on Armed Services United States
Senate

Subject: Contract Management: Selected DOD Consulting Services The Senate
Armed Services Committee's report accompanying the National Defense
Authorization Act for Fiscal Year 2000 directed us to review Department of
Defense (DOD) contracts for advisory and assistance services and other
services. 1 In response to the mandate, and as agreed with committee staff,
we reviewed 30 contracts associated with the largest fiscal year 1999
obligations for advisory and assistance and other services and described
these services obtained by the Office of the Secretary of Defense; the
Secretariats of the Air Force, the Navy, and the Army; and Headquarters,
Defense Logistics Agency. About $36 million was obligated for these contract
services.

Enclosure 1 describes the services obtained and provides general information
on each of the 30 contracts, including the contractor, amount obligated, the
performance period funded by this amount, and examples of services provided.

AGENCY COMMENTS DOD provided written comments and agreed with the
information in this report. DOD's comments are reprinted in enclosure 2.

1 As provided for in Office of Management and Budget Circular A- 11,
advisory and assistance services are (1) management and professional support
services that provide for the efficient and effective management and
operations of DOD organizations; (2) studies, analyses, and evaluations that
provide analytical assessments of complex issues to improve policy
development, decision- making, management, or administration; and (3)
engineering and technical services that are necessary to maintain and
operate fielded weapon systems, equipment, and components. Other services
are defined as services that cannot be classified as either advisory and
assistance services or any of the other service categories, including
research and development contracts; operation and maintenance of facilities
and equipment; purchases of goods and services from government accounts;
medical care; and subsistence and support of persons.

B- 285538 Page 2 GAO/ NSIAD- 00- 183R Selected DOD Consulting Services

Our scope and methodology are discussed in enclosure 3. We conducted our
review from October 1999 through June 2000 in accordance with generally
accepted government auditing standards.

We are sending copies to the Honorable William S. Cohen, Secretary of
Defense; Lieutenant General Henry T. Glisson, Director, Defense Logistics
Agency; the Honorable Louis Caldera, Secretary of the Army; the Honorable
Richard Danzig, Secretary of the Navy; and the Honorable F. Whitten Peters,
Secretary of the Air Force. We will also make copies available to others on
request.

Please contact me at (202) 512- 4841 or Ralph C. Dawn, Jr. at (202) 512-
4544 if you or your staff have any questions. Major contributors to this
report were Johana R. Ayers, Charles D. Groves, and Rosa M. Johnson.

Signed David E. Cooper Associate Director Defense Acquisition Issues

ENCLOSURE 1 ENCLOSURE 1

GAO/ NSIAD- 00- 183R Selected DOD Consulting Services 3

SELECTED ADVISORY AND ASSISTANCE AND OTHER SUPPORT SERVICES

The table below lists the titles of the services obtained by the
organizations included in our review.

Table 1: Titles of Services Obtained by Selected DOD Organizations Secretary
of Defense Page

Office of the Secretary of Defense's Study Program

-- Transforming DOD Logistics Processes and Operations 5 -- Science and
Technology Program Strategic Planning 6 -- Media Mix for National and Local
Recruitment Advertising: A Cost Effectiveness Analysis 7 -- Research and
Strategy for Obtaining Base Realignment and Closure Authority 8 -- North
Atlantic Treaty Organization's (NATO) and Other Countries' Defense
Capabilities and

Contributions 9

Deputy Under Secretary of Defense (Acquisition Reform)

-- Satellite Broadcasts on Acquisition Reform Issues 10 -- Performance
Measurement System for DOD's Military Acquisition Workforce 11 -- Workforce
Analyses, Acquisition Reform Newsletter, and Web Page 12 -- Defense/ Civil
Military Integration: Strategy to Standardize DOD- wide Manufacturing

Processes 13

-- Contribution- based Compensation and Appraisal System for DOD's Civilian
Acquisition Workforce

14

Secretary of the Navy Assistant Secretary of the Navy (Research,
Development, and Acquisition)

-- Management Support for the Navy's Standard Procurement System 15 --
Installing the Standard Procurement System at Navy Sites 16 -- Revising the
Navy's Acquisition Documents and Supporting the Navy's Single Process

Initiative 17

ENCLOSURE 1 ENCLOSURE 1

GAO/ NSIAD- 00- 183R Selected DOD Consulting Services 4

-- Guide for Navy Weapon System Power Supplies and Engineering Analyses and
Investigations

18 -- Strategic Planning for the Assistant Secretary of the Navy (Research,
Development, and

Acquisition) 19

Secretary of the Air Force Assistant Secretary of the Air Force, Acquisition

-- Restructuring Headquarters Air Force Business Processes and Providing a
13,500- Square foot Work Location

20 -- Analyses and Technical Support for Weapon Related Programs 21 --
Integrated Budget Documentation and Financial Execution Systems 22 --
Business Process Improvements for Air Force Acquisition 23 -- Alternative
Approaches to Air Cargo Delivery 24

Secretary of the Army Office of the Director of Information Systems,
Command, Control, Communications,

and Computers

-- Management Control Over Information System Acquisitions 25 -- Linking
Military Operational Requirements to Information System Concepts 26 --
Translating Concepts for Information Systems Into Specific System
Requirements 27 -- Computer- based Information Technology Training 28 --
Information System Acquisitions to Support Battlefield Communication Needs
29

Defense Logistics Agency (DLA)

-- Improve the Quality of DLA's Financial Management 30 -- Develop a Vision
and Organizational Structure for DLA in the New Millenium 31 -- Develop an
Activity- based Cost Model for DLA's Corporate Administration 32 -- Develop
and Maintain DLA's Safety and Health Information Reporting System 33 --
Develop Improved DLA Procedures for Collecting and Reporting Hazardous Waste
Disposal

Information 34

ENCLOSURE 1 ENCLOSURE 1

GAO/ NSIAD- 00- 183R Selected DOD Consulting Services 5

Transforming DOD Logistics Processes and Operations

Organization: Deputy Under Secretary of Defense (Logistics) Contractor:
Logistics Management Institute Fiscal year 1999 obligation amount:
$1,199,121

Performance period: February 6, 1999, to August 31, 2000 The Deputy Under
Secretary of Defense (Logistics) oversees a logistics infrastructure that
consumes one- third of DOD's annual budget and employs nearly 40 percent of
Defense personnel. Despite reductions throughout the 1990s, DOD regards its
logistics infrastructure as too large and expensive in today's constrained
budget environment. To assist in identifying ways to reduce logistics costs,
the Deputy Under Secretary obtained consulting service support from the
Logistics Management Institute. The institute has been providing contract
services in support of this effort to the Deputy Under Secretary for many
years.

The Logistics Management Institute's efforts under this contract cover eight
areas, including logistics strategic planning, performance measurements,
supply operations, joint maintenance, field- level maintenance, condition-
based maintenance, 1 integration of commercial support with DOD's logistics
system, and automatic identification technology (commonly known as bar
coding). Examples of services being provided during the performance period
include

ï¿½ preparing a plan entitled “DOD Logistics Strategic Plan– 21st
Century Logistics” by assisting teams in developing goals and
objectives, recommending new strategies, and drafting the plan;

ï¿½ preparing a report entitled “Supply Chain Management: A Recommended
Performance Measurement Scorecard” by researching measurements used by
industry and DOD, selecting a measurement framework, and recommending
performance measures for use by DOD;

ï¿½ preparing a report entitled “Public- Private Partnerships for Depot-
Level Maintenance” by identifying implemented, ongoing, and planned
partnerships between the military services and commercial business; and

ï¿½ conducting a 1999 DOD Maintenance Symposium by researching key areas of
interest to joint- service maintenance communities, assessing major factors
in each area, developing an agenda based on the assessments, and identifying
subject matter experts to make presentations in each area at the symposium.

1 Condition- based maintenance takes place when there is a deterioration or
failure in equipment condition outside a fixed schedule or interval.

ENCLOSURE 1 ENCLOSURE 1

GAO/ NSIAD- 00- 183R Selected DOD Consulting Services 6

Science and Technology Program Strategic Planning

Organization: Director of Defense Research and Engineering Contractor:
Systems Planning Corporation Fiscal year 1999 obligation amount: $952,732

Performance period: April 30, 1999, to May 31, 2000 The Secretary of Defense
is required to submit to Congress an annual science and technology plan that
supports the development of future joint war- fighting capabilities. 2 To
meet this requirement, the Director of Defense Research and Engineering
prepares a series of plans, including the Joint Warfighting Science and
Technology Plan. The plans are based on input from various science and
technology panels made up of experts throughout the military services. To
support these panels, contract services have been obtained from Systems
Planning Corporation since 1996.

Systems Planning Corporation supported science and technology program
strategic planning in a variety of ways. Examples of services provided
during the performance period include

ï¿½ supporting planning workshops to recommend changes to improve the
strategic planning process and requirements for documentation;

ï¿½ providing technical and editorial support for the science and technology
panels that prepared year 2000 updates to strategic planning documents,
including the Joint Warfighting Science and Technology Plan, the Defense
Science and Technology Strategy, the Defense Technology Area Plans, and the
Basic Research Plan; and

ï¿½ conducting a pilot project to test an approach to identify limitations and
shortfalls in meeting joint war- fighting capability objectives.

2 P. L. 104- 201.

ENCLOSURE 1 ENCLOSURE 1

GAO/ NSIAD- 00- 183R Selected DOD Consulting Services 7

Media Mix for National and Local Recruitment Advertising: A Cost
Effectiveness Analysis

Organization: Under Secretary of Defense (Personnel and Readiness)
Contractor: RAND National Defense Research Institute Fiscal year 1999
obligation amount: $800,000

Performance period: October 1, 1998, to September 30, 1999 In fiscal year
1996, the Secretary of Defense initiated a comprehensive evaluation of DOD's
advertising programs to recruit military personnel. To conduct this
evaluation, the RAND National Defense Research Institute provided contractor
support from 1996 through 1998 to (1) review previous research on
advertising effectiveness, (2) review and analyze ongoing and prospective
developments in the evolution of advertising techniques, and (3) develop a
conceptual model design for evaluating advertising effectiveness. In fiscal
year 1999, the last year of this contract, the contractor continued efforts
begun in the previous years.

RAND developed cost- effectiveness measures to evaluate the current mix of
advertising media for each service. In addition, RAND, assisted by two
advertising consulting firms, reviewed components of the advertising program
to recommend improvements. Examples of services provided during the
performance period include

ï¿½ conducting focus groups with recruiters and recent recruits to assess the
prime motivations for enlistment, obtain their views on recruitment
advertising, and develop recommendations for changes in the advertising
program;

ï¿½ interviewing officials on the research tools used by advertising agencies,
recruitment development strategies, and the advantages of pooling
advertising buys to increase market leverage; and

ï¿½ preparing a briefing used by DOD to support, among other things, increased
funding for recruitment advertising.

ENCLOSURE 1 ENCLOSURE 1

GAO/ NSIAD- 00- 183R Selected DOD Consulting Services 8

Research and Strategy for Obtaining Base Realignment and Closure Authority

Organization: Deputy Under Secretary of Defense (Installations) Contractor:
Technology Strategies and Alliances Corporation Fiscal year 1999 obligation
amount: $706,083

Performance period: April 14, 1999, to July 30, 1999 In the late 1980s,
changes in the national security environment resulted in a military
infrastructure with more bases than DOD needed. To enable DOD to close
unneeded bases, Congress enacted legislation that instituted base closures
in 1988, 1991, 1993, and 1995. In conjunction with the President's fiscal
year 2000 budget request, DOD submitted a legislative proposal asking for
additional base closure authority in fiscal years 2001 and 2005. To prepare
the legislative proposal, the Secretary organized a DOD team under the
leadership of the Deputy Under Secretary of Defense (Installations).

To assist this team, contract services were obtained from Technology
Strategies and Alliance Corporation beginning in April 1999 to analyze DOD's
data and assess the legislative proposal. Examples of services provided
during the performance period include

ï¿½ preparing a briefing to justify additional base realignment and closure
authorization and inform Congress and other interested parties;

ï¿½ developing possible legislative options, such as the number and timing of
base closure rounds, along with the advantages and disadvantages of each
option;

ï¿½ analyzing the impacts of previous base closure rounds on a state- by-
state basis to identify significant issues; and

ï¿½ preparing information to highlight past examples of benefits from closing
unneeded bases and show that past closures have not adversely affected
future mobilization efforts.

ENCLOSURE 1 ENCLOSURE 1

GAO/ NSIAD- 00- 183R Selected DOD Consulting Services 9

North Atlantic Treaty Organization's (NATO) and Other Countries' Defense
Capabilities and Contributions

Organization: Director (Program Analysis and Evaluation) and Under Secretary
of Defense for Policy

Contractor: General Research Corporation Fiscal year 1999 obligation amount:
$642,000

Performance period: September 1, 1999, to August 31, 2000 To assess changes
in the defense capabilities, forces, defense spending, and other
contributions of U. S. allies, DOD obtained contract services to develop a
database that accumulates information on NATO members, those countries that
may be invited to join NATO, and other U. S. allies around the world.
General Research Corporation has provided contract services to update the
database and conduct defense capabilities analyses for the past 9 years.

The General Research Corporation analyzes data on defense capabilities and
contributions, and DOD officials use this information to prepare reports and
interact with Congress, NATO military and civilian staff personnel, NATO
countries, and other countries. Examples of services being provided during
the performance period include

ï¿½ providing analyses and data that supported establishing the NATO Defense
Capabilities Initiative, preparing the Secretary of Defense's report to
Congress on the initiative, and assessing future NATO progress in
implementing the initiative; 3

ï¿½ providing analyses and data used in preparing the Secretary of Defense's
annual report to Congress on allied contributions to the common defense; 4
and

ï¿½ providing assessments of various countries' defense capabilities and
contributions to be used by U. S. officials in dealing with Congress, NATO
members, and other countries on a wide range of defense and regional
security issues.

3 P. L. 106- 65 section 1039 mandates a report on the implementation of the
Defense Capability Initiative by NATO countries. 4 P. L. 105- 261 title XII
section 1233 mandates a report on national security bases to be used for
forward deployment and burdensharing

relationships. Additionally, the report covers burden- sharing reporting
requirements as set forth in P. L. 105- 237 section 119.

ENCLOSURE 1 ENCLOSURE 1

GAO/ NSIAD- 00- 183R Selected DOD Consulting Services 10

Satellite Broadcasts on Acquisition Reform Issues

Organization: Deputy Under Secretary of Defense (Acquisition Reform)
Contractor: MTS Technologies Inc. Fiscal year 1999 obligation amount:
$1,285,348

Performance period: April 2, 1999, to April 1, 2000 Following the
acquisition policy changes of the early 1990s, DOD determined that satellite
broadcasts on specific acquisition issues should be used to provide
information to the acquisition workforce and other interested groups. To
develop and produce these broadcasts, the Deputy Under Secretary of Defense
(Acquisition Reform) obtained these services from MTS Technologies beginning
in April 1999.

MTS Technologies developed and produced satellite broadcasts covering
Acquisition Reform Week (used to promote new reform initiatives), System
Acquisitions, A- 76 Competitive Sourcing, and the Defense Reform Initiative
Update. Examples of services provided during the performance period include

ï¿½ working with acquisition reform officials to identify the issues and
learning objectives and to develop the format and scripts for each
broadcast;

ï¿½ producing pre- broadcast videos and developing the graphics and other
materials used in the broadcasts;

ï¿½ arranging studio and satellite time for the broadcasts and publicizing the
broadcasts;

ï¿½ providing technical support by troubleshooting and correcting problems on
the day of the broadcasts;

ï¿½ tracking the number of individuals who view each broadcast; and

ï¿½ making copies of each broadcast available to the government workforce and
industry upon request.

ENCLOSURE 1 ENCLOSURE 1

GAO/ NSIAD- 00- 183R Selected DOD Consulting Services 11

Performance Measurement System for DOD's Military Acquisition Workforce

Organization: Deputy Under Secretary of Defense (Acquisition Reform)
Contractor: Logistics Management Institute Fiscal year 1999 obligation
amount: $999,816

Performance period: January 27, 1999, to June 30, 2000 In 1997, the Office
of the Secretary of Defense began a phased effort to review the system of
incentives and personnel actions for encouraging excellence in the
management of defense acquisition programs. 5 The system was expected to
relate incentives to performance and consider the extent to which
performance contributes to the attainment of strategic goals as well as to
the achievement of weapon system cost, schedule, and performance goals.
Logistics Management Institute was awarded a contract to support this phased
effort. Under the first phase, begun in fiscal year 1997, the institute
conducted research on how existing incentives related to performance and
what new incentive programs were being tested. Under the second phase,
covering fiscal year 1998, the institute designed a statistical test for
measuring program success and recommended an enhanced system of incentives.

Under the third phase of the effort, the Logistics Management Institute is
exploring the development of a performance measurement system and the use of
various incentives such as medals, savings bonds, and time off. Examples of
services being provided during the performance period include

ï¿½ developing an approach to link the performance measurement system to DOD's
acquisition, technology, and logistics goals;

ï¿½ testing the performance measurement approach on five major defense
acquisition programs within the Naval Air Systems Command; and

ï¿½ identifying incentives that can be used to reward military personnel
within current statutes. 5 P. L. 103- 355 section 5002 requires the
Secretary of Defense to review the incentives for encouraging excellence in
the management of defense acquisition programs.

ENCLOSURE 1 ENCLOSURE 1

GAO/ NSIAD- 00- 183R Selected DOD Consulting Services 12

Workforce Analyses, Acquisition Reform Newsletter, and Web Page

Organization: Deputy Under Secretary of Defense (Acquisition Reform)
Contractor: Systems Research and Applications International Fiscal year 1999
obligation amount: $553,000

Performance period: April 1, 1999, to December 31, 1999 The Deputy Under
Secretary of Defense (Acquisition Reform) is responsible for ensuring that
the acquisition workforce's education and training incorporates reform
initiatives and for disseminating information on those initiatives to the
workforce and private industry. To assist in accomplishing these
responsibilities, the Deputy Under Secretary has obtained contract services
from Systems Research and Applications International since 1996.

Systems Research and Applications International analyzed acquisition
workforce issues and assisted in disseminating information on acquisition
initiatives. Examples of services provided during the performance period
include

ï¿½ compiling and analyzing data for inclusion in a congressionally mandated
report on the promotion rates of officers in the acquisition workforce
compared with rates of officers outside the acquisition workforce; 6

ï¿½ analyzing demographic data on the acquisition workforce to develop job
position categories and identify training needs; and

ï¿½ writing and publishing a bimonthly acquisition reform newsletter, as well
as designing and maintaining the acquisition reform web page.

6 P. L. 105- 85 section 849( b) required DOD to assess for three years the
extent to which each military department is complying with the requirement
set forth in 10 USC 1731( b) to ensure that the qualifications of officers
selected for an Acquisition Corps be such that those officers may be
expected to achieve promotion parity with officers outside the Acquisition
Corps. The intent of 10 USC 1731( b) is to ensure that the services select
high- quality officers to perform acquisition duties.

ENCLOSURE 1 ENCLOSURE 1

GAO/ NSIAD- 00- 183R Selected DOD Consulting Services 13

Defense/ Civil Military Integration: Strategy to Standardize DOD- wide
Manufacturing Processes

Organization: Deputy Under Secretary of Defense (Acquisition Reform)
Contractor: The Analytic Science Corporation Fiscal year 1999 obligation
amount: $527,622

Performance period: January 28, 1999, to January 28, 2000 In December 1995,
the Secretary of Defense announced a policy to implement a single- process
initiative to eliminate multiple management and manufacturing requirements
across existing defense contracts at a given facility. This initiative
allows contractors to use their most efficient business and manufacturing
practices instead of government standards. The Analytic Science
Corporation's services were obtained in January 1999 to support this
initiative. The contractor has supported the Deputy Under Secretary on
related initiatives since 1990.

Examples of services provided during the performance period include

ï¿½ maintaining and updating data used to measure the progress in
transitioning from government- unique manufacturing requirements to common
standards and processes;

ï¿½ providing briefings and reports based on field visits to industry and the
military services to identify success stories and obstacles to
implementation; and

ï¿½ providing administrative support, including coordinating agendas,
disseminating materials, facilitating meetings, and drafting minutes of the
meetings.

ENCLOSURE 1 ENCLOSURE 1

GAO/ NSIAD- 00- 183R Selected DOD Consulting Services 14

Contribution- based Compensation and Appraisal System for DOD's Civilian
Acquisition Workforce

Organization: Deputy Under Secretary of Defense (Acquisition Reform)
Contractor: Systems Research and Applications International Fiscal year 1999
obligation amount: $505,000

Performance period: April 13, 1999, to August 14, 2000 In 1996, DOD
initiated the Acquisition Personnel Demonstration Project to enhance its
ability to attract, retain, and motivate the civilian acquisition workforce.
7 The demonstration project seeks to accomplish these goals by changing
personnel management policies and establishing a stronger link between pay
and performance. Between 1996 and 1998, DOD focused its efforts on designing
the demonstration project, and it began implementing the project in early
1999 with contractor support.

As part of the implementation phase, Systems Research and Applications
International developed the software used in conducting employee appraisals.
Examples of services being provided during the performance period include

ï¿½ designing, developing, and testing software for the Contribution- based
Compensation and Appraisal System, which is accessible to authorized
personnel through the web;

ï¿½ developing a training plan and delivering training to supervisors and
managers on how to use the software for conducting employee appraisals and
setting employee expectations; and

ï¿½ providing assistance in using the software during the first contribution-
based appraisal and compensation cycle.

7 P. L. 104- 106 section 4308, as amended by P. L. 105- 85 section 845,
encouraged DOD to conduct a demonstration project to improve the personnel
management policies or procedures that apply to its civilian acquisition
workforce.

ENCLOSURE 1 ENCLOSURE 1

GAO/ NSIAD- 00- 183R Selected DOD Consulting Services 15

Management Support for the Navy's Standard Procurement System

Organization: Assistant Secretary of the Navy (Research, Development, and
Acquisition)

Contractor: PricewaterhouseCoopers LLP Fiscal year 1999 obligation amount:
$3,598,100

Performance period: October 1, 1998, to September 30, 1999 The Standard
Procurement System program is an ongoing DOD initiative intended to create a
common operating environment for DOD's procurement community. The standard
system is expected to centralize the management of numerous automated
procurement systems performing similar functions. To support the planning,
implementation, and documentation of the Standard Procurement System as it
is installed at Navy sites, the Navy has obtained contract services from
PricewaterhouseCoopers since 1997. Another contractor is responsible for
initially deploying and providing technical support for the system (see p.
16).

PricewaterhouseCoopers assisted in developing, validating, and revising the
Navy's Standard Procurement System strategy and project plan. Examples of
services provided during the performance period include

ï¿½ assisting in installing and implementing the Standard Procurement System
at Navy sites;

ï¿½ identifying, documenting, and tracking implementation, as well as
performance and productivity measurements;

ï¿½ assisting in training issues related to installing and implementing the
Standard Procurement System at Navy sites; and

ï¿½ drafting briefings and providing administrative support for conferences
and meetings as required.

ENCLOSURE 1 ENCLOSURE 1

GAO/ NSIAD- 00- 183R Selected DOD Consulting Services 16

Installing the Standard Procurement System at Navy Sites

Organization: Assistant Secretary of the Navy (Research, Development, and
Acquisition)

Contractor: American Management Systems Fiscal year 1999 obligation amount:
$2,058,000

Performance period: May 7, 1999, to September 30, 1999 The Standard
Procurement System program is an ongoing DOD initiative intended to create a
common operating environment for DOD's procurement community. The standard
system is expected to centralize the management of numerous automated
procurement systems performing similar functions and to reduce maintenance
costs for these systems. American Management System's proprietary software,
entitled Procurement Desktop- Defense, was procured and will be used
throughout DOD. To install the system at Navy sites, the Navy has contracted
with American Management System since 1997. Another contractor is providing
the overall management support associated with planning, implementing, and
documenting the use of the system as it is installed throughout the Navy
(see p. 15).

American Management Systems is installing the Standard Procurement System at
Navy sites. Examples of services provided during the performance period
include

ï¿½ installing the Standard Procurement System at approximately 300 Navy sites
and

ï¿½ providing the Navy with advice, analysis, and technical assistance in
support of the Navywide execution of the Standard Procurement System.

ENCLOSURE 1 ENCLOSURE 1

GAO/ NSIAD- 00- 183R Selected DOD Consulting Services 17

Revising the Navy's Acquisition Documents and Supporting the Navy's Single
Process Initiative

Organization: Assistant Secretary of the Navy (Research, Development, and
Acquisition)

Contractor: Parallax, Inc. Fiscal year 1999 obligation amount: $737,000

Performance period: December 10, 1998, to December 9, 1999 To keep up with
changes in acquisition policy and other DOD and Navy acquisition reform
efforts, the Assistant Secretary of the Navy (Research, Development, and
Acquisition) obtained contract services from Parallax, Inc., which has
provided acquisition policy and acquisition reform support to the Assistant
Secretary since 1995.

Parallax, Inc. primarily supported the Assistant Secretary by revising
documents to incorporate changes in acquisition policy and supporting the
Single Process Initiative, a DOD- wide initiative that allows contractors to
use their most efficient business and manufacturing practices instead of
government standards. Examples of services provided during the performance
period include

ï¿½ coordinating inquiries and responses to potential changes in DOD and
Secretary of the Navy acquisition instructions and regulations;

ï¿½ providing support for the implementation and integration of the Single
Process Initiative into the Navy, including assessing the Navy's progress in
implementing the initiative and developing draft policies and
recommendations to replace military specifications; and

ï¿½ providing administrative support, including drafting presentation
materials for participants attending conferences, maintaining training files
for students attending acquisition courses, preparing correspondence, and
providing customer liaison services.

ENCLOSURE 1 ENCLOSURE 1

GAO/ NSIAD- 00- 183R Selected DOD Consulting Services 18

Guide for Navy Weapon System Power Supplies and Engineering Analyses and
Investigations

Organization: Assistant Secretary of the Navy (Research, Development, and
Acquisition)

Contractor: EG& G Washington Analytical Services Fiscal year 1999 obligation
amount: $418,000

Performance period: January 11, 1999, to January 10, 2000 For a number of
years, the Assistant Secretary of the Navy (Research, Development, and
Acquisition) has been pursuing initiatives to reduce the technical risk in
the design, testing, and production of naval weapon systems. The Navy
believes that one of the more critical components in today's combat weapon
systems- power supply- is resurfacing as a growing risk. Other related
concerns deal with engineering analyses or investigations of technical risks
associated with naval weapons and their components. To assist the Assistant
Secretary in assessing risk, the Navy obtained support from EG& G Washington
Analytical Services beginning in 1998.

During the performance period, EG& G Washington Analytical Services spent
the majority of its time developing a Navy power supply guide, with the
remaining time spent on other technical and risk management support.
Examples of services provided during the performance period include

ï¿½ developing a Navy power supply guide, “More Power For the
Dollar,” for use by program managers in identifying and understanding
alternative power supplies that can be used in Navy weapon systems and
equipment;

ï¿½ supporting the Naval Air Systems Command in its goal of institutionalizing
risk management as a tool for ensuring success in developing weapon systems
and equipment by developing a training course to deal with technical risks;
and

ï¿½ conducting independent risk assessments and engineering analyses of Navy
weapon systems, including aircraft mishaps.

ENCLOSURE 1 ENCLOSURE 1

GAO/ NSIAD- 00- 183R Selected DOD Consulting Services 19

Strategic Planning for the Assistant Secretary of the Navy (Research,
Development, and Acquisition)

Organization: Assistant Secretary of the Navy (Research, Development, and
Acquisition)

Contractor: Information Spectrum Inc. Fiscal year 1999 obligation amount:
$306,000

Performance period: December 4, 1998, to February 29, 2000 During fiscal
year 1998, the Navy contracted with Information Spectrum Inc. to assess a
1996 strategic plan and develop recommendations for preparing a new
strategic plan that identifies the mission, vision, and goals for the
Assistant Secretary of the Navy for Research, Development, and Acquisition.
Information Spectrum Inc. continued to provide contract support in 1999 to
identify the strategies and measures of success to attain the goals set out
in the plan.

Information Spectrum Inc. supported Navy personnel in creating a strategic
plan and supported the implementation of the plan by Navy subordinate
commands and activities. Examples of services provided during the
performance period include

ï¿½ guiding the creation and publication of the Naval Research, Development,
and Acquisition Team 1999- 2004 Strategic Plan by interviewing senior
leaders to identify issues, presenting the findings to the Navy leadership,
and building consensus on the measures to be used in evaluating the progress
in reaching the plan's goals;

ï¿½ preparing a 1999- 2004 Strategic Plan Outreach Communications Plan to
inform Navy organizations about the strategic plan by setting outreach
objectives, scheduling outreach briefings, and preparing outreach briefing
talking points; and

ï¿½ planning a coordination meeting to link individual subordinate commands'
strategic plans to the overall 1999- 2004 strategic plan, including
establishing the meeting's objectives, stressing the need for strategic plan
coordination officers at subordinate commands, and preparing the agenda for
the meeting.

ENCLOSURE 1 ENCLOSURE 1

GAO/ NSIAD- 00- 183R Selected DOD Consulting Services 20

Restructuring Headquarters Air Force Business Processes and Providing a
13,500- Square- foot Work Location

Organization: Assistant Secretary of the Air Force (Acquisition) Contractor:
DSD Laboratories, Inc. Fiscal year 1999 obligation amount: $5,452,149

Performance period: January 14, 1999, to January 13, 2001 Due to past and
anticipated staff reductions at the headquarters level, the Air Force has
initiated an effort, known as Headquarters Air Force 2002, to streamline its
headquarters processes, cut costs, and improve the quality of its work. In
January 1999, the Assistant Secretary of the Air Force (Acquisition)
obtained the services of DSD Laboratories to evaluate various acquisition
processes. On the basis of the results of DSD Laboratories' effort, Air
Force Headquarters formed three process design teams to assess the
operational requirements process, information technology support services,
and administrative support services.

DSD Laboratories provided contract services in the initial planning efforts
for restructuring Headquarters Air Force business processes. More
specifically, it assisted the Assistant Secretary in streamlining the
acquisition business processes. Due to a lack of suitable space at the
Pentagon to accommodate design teams composed of government and industry
representatives, DSD Laboratories leased a work location where design teams
assessing headquarters and acquisition business processes could complete
their work. Examples of services being provided during the performance
period include

ï¿½ briefing Air Force Headquarters leaders on various business processes that
could be restructured and helping to select a qualified vendor to validate
the processes to be redesigned;

ï¿½ assisting Air Force Headquarters in redesigning acquisition processes and
preparing monthly trend analyses of cost, schedule, and performance of major
weapon systems; and

ï¿½ providing a 13,500- square- foot work location with resources, such as a
database of best practices to compare existing acquisition practices with
those of the private and international sector.

ENCLOSURE 1 ENCLOSURE 1

GAO/ NSIAD- 00- 183R Selected DOD Consulting Services 21

Analyses and Technical Support for Weapon Related Programs

Organization: Assistant Secretary of the Air Force (Acquisition) Contractor:
Analytic Services Inc. Fiscal year 1999 obligation amount: $5,008,200

Performance period: January 1, 1999, to June 30, 2001 Historically, the
Assistant Secretary (Acquisition) has contracted for research and analyses
that have been used as the basis for decisions regarding Air Force weapon
system acquisitions. The Assistant Secretary has obtained contract services
to address concerns associated with defining weapon system operational
requirements, analyzing proposed changes to improve weapon system
capabilities, programming and budgeting for acquisition systems, and
undertaking other activities to research, develop, and acquire weapon
systems. Analytic Services Inc. has provided these services to the Assistant
Secretary since 1991.

Analytic Services Inc. has provided contract services, such as conducting
policy, program, budget, and technical analyses, and has made
recommendations concerning weapon related programs. Examples of services
being provided during the performance period include

ï¿½ analyzing the impacts of operational requirements and system changes on
the programming and budgeting of various weapon systems such as the Joint
Surveillance Attack Radar System;

ï¿½ analyzing and reporting on international cooperation and standardization
of weapon systems, including the interoperability of weapon systems used by
NATO member countries; and

ï¿½ analyzing munitions export license applications and advising on the
transfer of technologies to ensure that they are consistent with U. S.
national security and foreign policy concerns.

ENCLOSURE 1 ENCLOSURE 1

GAO/ NSIAD- 00- 183R Selected DOD Consulting Services 22

Integrated Budget Documentation and Financial Execution Systems

Organization: Assistant Secretary of the Air Force (Acquisition) Contractor:
CMS Information Services Inc. Fiscal year 1999 obligation amount: $2,050,000

Performance period: April 1, 1999, to June 30, 2000 The Assistant
Secretaries of the Air Force for Acquisition and Financial Management are
trying to streamline and improve the budget documentation and financial
execution of weapon system acquisition programs. Currently, various Air
Force acquisition organizations use different formats in preparing budget
documentation. Once the budget documents have been approved, these same Air
Force organizations use different financial systems to execute or track
funding allocated to the weapon system programs. CMS has been providing
services to the Assistant Secretaries in support of these efforts since
1998.

Examples of services being provided by CMS Information Services during the
performance period include

ï¿½ installing the Investment Budget Documentation System, a prototype used in
preparing budget documents to ensure that Air Force organizations present
budget data using the same format and that the numbers balance;

ï¿½ enhancing the Acquisition Funds Control System, an operational system
designed to track the current funding status of three appropriations; and

ï¿½ developing the concept of an integrated system, the Investment Budget and
Execution System, to merge budget documentation and fund control
information.

ENCLOSURE 1 ENCLOSURE 1

GAO/ NSIAD- 00- 183R Selected DOD Consulting Services 23

Business Process Improvements for Air Force Acquisition

Organization: Assistant Secretary of the Air Force (Acquisition) Contractor:
Systems Research and Applications International Fiscal year 1999 obligation
amount: $1,769,231

Performance period: April 12, 1999, to March 31, 2001 Over the past few
years, the Assistant Secretary (Acquisition) has been using contract
services to redesign the way work is done to better support the
organization's mission and reduce costs. After assessing the organization's
mission, strategic goals, and customer needs, the redesign effort focused on
business processes- the steps and procedures that govern how resources are
used to meet the needs of particular customers. Systems Research and
Applications International has been providing these contract services to
support the Assistant Secretary since 1995.

Systems Research and Applications International is providing support in
reviewing Air Force acquisition policy, identifying business process
improvements, assessing the costs to acquire weapon systems, conducting
workshops, and disseminating information on Air Force acquisition issues.
These services are intended to promote collaboration and sharing of
information among the acquisition community. Examples of services being
provided during the performance period include

ï¿½ briefing Air Force officials on the status of acquisition policy changes
that have taken place and suggesting ways to incorporate the latest reforms;

ï¿½ analyzing and reporting on the costs associated with producing, operating,
maintaining, and disposing of weapon systems;

ï¿½ arranging and conducting executive conferences to improve businesses
processes, including identifying customers' needs and expectations for
quality products; and

ï¿½ researching and publishing newsletters about acquisition reform
initiatives and maintaining a web site.

ENCLOSURE 1 ENCLOSURE 1

GAO/ NSIAD- 00- 183R Selected DOD Consulting Services 24

Alternative Approaches to Air Cargo Delivery

Organization: Assistant Secretary of the Air Force (Acquisition) Contractor:
DSD Laboratories, Inc. Fiscal year 1999 obligation amount: $672,000

Performance period: September 20, 1999, to September 19, 2000 The Secretary
of the Air Force has been evaluating alternative approaches to air cargo
delivery. To support this effort, DSD Laboratories' services were obtained
by the Assistant Secretary (Acquisition) in September 1999 to conduct a
study that evaluates the use of Air Force cargo aircraft for commercial use
and the potential for leasing commercial aircraft for use by the military
services. This study is being prepared in consultation with the Federal
Aviation Administration, aircraft manufacturers, and the financial industry.

Examples of services being provided by DSD Laboratories during the
performance period include

ï¿½ analyzing the use of military cargo aircraft in a commercial environment,
including the financial industry's acceptance of the concept and industry's
ability to fund it;

ï¿½ analyzing the possibility of the Air Force leasing commercial aircraft
rather than producing its own military cargo aircraft; and

ï¿½ validating the costs and identifying the obstacles to various alternatives
such as certifying the C- 17 military cargo aircraft for use by the
commercial community.

ENCLOSURE 1 ENCLOSURE 1

GAO/ NSIAD- 00- 183R Selected DOD Consulting Services 25

Management Control Over Information System Acquisitions

Organization: Secretary of the Army, Office of the Director of Information
Systems for Command, Control, Communications, and Computers

Contractor: MITRE Corporation 8 Fiscal year 1999 obligation amount:
$1,227,600

Performance period: October 1, 1998, to September 30, 1999 To prescribe the
processes and standards for developing, managing, and using information
technology systems, the Army has established the Army Enterprise
Architecture. The architecture seeks to link the Army's information system
acquisitions with military operational requirements, ensure the
interoperability of those systems, and maintain standards by which the Army
can evaluate and acquire new systems. The Army uses contract services to
assist in maintaining overall management control of information system
acquisitions, linking military operational requirements to concepts for
information systems, translating these information system concepts into
specific system requirements, and developing investment strategies to
evaluate and acquire new information systems.

The MITRE Corporation primarily provides configuration management control
assistance to the Army, while trying to ensure the interoperability of the
information technology systems acquired by the Army. MITRE has been
supporting the Army's architecture efforts since 1993. Examples of services
provided during the performance period include

ï¿½ providing configuration management and control to ensure military
requirements are translated into specific information systems for use by
various Army organizations;

ï¿½ analyzing whether technical standards are used to ensure interoperability
throughout DOD and with U. S. allies; and

ï¿½ developing a database to track Y2K compliance of critical Army functions
and missions such as the fire support needed during a military engagement.

8 The MITRE Corporation is a federally funded research and development
center. Unlike a commercial contractor, MITRE accepts restrictions intended
to allow DOD to maintain a special relationship with the center and to allow
center staff access to sensitive government or contractor data.

ENCLOSURE 1 ENCLOSURE 1

GAO/ NSIAD- 00- 183R Selected DOD Consulting Services 26

Linking Military Operational Requirements to Information System Concepts

Organization: Secretary of the Army, Office of the Director of Information
Systems for Command, Control, Communications, and Computers

Contractor: EER Systems Inc. Fiscal year 1999 obligation amount: $1,148,450

Performance period: June 21, 1999, to June 20, 2000 To prescribe the
processes and standards for developing, managing, and using information
technology systems, the Army has established the Army Enterprise
Architecture. The architecture seeks to link the Army's information system
acquisitions with military operational requirements, ensure the
interoperability of those systems, and maintain standards by which the Army
can evaluate and acquire new systems. The Army uses contract services to
assist in maintaining overall management control of information system
acquisitions, linking military operational requirements to concepts for
information systems, translating these information system concepts into
specific system requirements, and developing investment strategies to
evaluate and acquire new information systems.

EER Systems is providing assistance to the Army by linking defined military
operational requirements to concepts for information systems. EER Systems
has been providing these services to the Army since 1997. Examples of
services provided during the performance period include

ï¿½ supporting a requirements definition program by developing, validating,
and implementing information technology requirements for existing and future
Army communications equipment for National Guard, Reserve, and Active Army
units;

ï¿½ supporting modeling and simulation efforts, such as for understanding the
shortfall between the message traffic requirements for existing
communication equipment and potential message traffic for future equipment;
and

ï¿½ developing products that depict graphical displays identifying information
technology equipment types and locations for future Army organizations,
especially the brigade combat team, which is a planned medium- sized Army
organization that can be self- sustaining until larger Army organizations or
forces arrive.

ENCLOSURE 1 ENCLOSURE 1

GAO/ NSIAD- 00- 183R Selected DOD Consulting Services 27

Translating Concepts for Information Systems Into Specific System
Requirements

Organization: Secretary of the Army, Office of the Director of Information
Systems for Command, Control, Communications, and Computers

Contractor: Booz, Allen, & Hamilton Fiscal year 1999 obligation amount:
$884,000

Performance period: March 10, 1999, to March 31, 2000 To prescribe the
processes and standards for developing, managing, and using information
technology systems, the Army has established the Army Enterprise
Architecture. The architecture seeks to link the Army's information system
acquisitions with military operational requirements, ensure the
interoperability of those systems, and maintain standards by which the Army
can evaluate and acquire new systems. The Army uses contract services to
assist in maintaining overall management control of information system
acquisitions, linking military operational requirements to concepts for
information systems, translating these information system concepts into
specific system requirements, and developing investment strategies to
evaluate and acquire new information systems.

Booz, Allen, & Hamilton develops analytical tools and maintains the Army
System Architecture database that together assist the Army in translating
concepts for military equipment and weapons into detailed system
requirements. Booz, Allen, & Hamilton has been providing these services to
the Army since 1996. Examples of services provided during the performance
period include

ï¿½ conducting research and development of software integration tools that aid
in transforming conceptual information systems into detailed Army system
architectures;

ï¿½ ensuring that all Army concepts for information systems are entered in the
database of various systems such as the First Digitized Force Systems
Architecture;

ï¿½ providing output from the Systems Architecture database in customized
formats required by various Army customers; and

ï¿½ ensuring integrity for information system data so that it can be used by
various Army personnel working in different areas such as budget,
engineering, and systems integration.

ENCLOSURE 1 ENCLOSURE 1

GAO/ NSIAD- 00- 183R Selected DOD Consulting Services 28

Computer- based Information Technology Training

Organization: Secretary of the Army, Office of the Director of Information
Systems for Command, Control, Communications, and Computers

Contractor: SmartForce (Previously CBT Systems USA) Fiscal year 1999
obligation amount: $772,000

Performance period: September 30, 1999, to September 29, 2000 To provide
Army personnel with computer- based information technology training, the
Army's Office of the Director of Information Systems for Command, Control,
Communications, and Computers obtained the services of CBT Systems USA, now
known as SmartForce. SmartForce provided this service in the previous year.

Examples of services being provided by SmartForce during the performance
period include

ï¿½ providing over 1,000 training courses covering data communications,
computer programming, networks, operating systems, and office programs for
up to 200,000 Army civilian personnel and soldiers, including those in the
National Guard and Reserves, through the worldwide web, local area networks,
and CD- ROMs;

ï¿½ providing more intensive information technology training for up to 355
Army personnel through computer- based courses that provide additional
materials and mentoring from subject matter experts;

ï¿½ tracking the courses accessed, the percentage of courses completed, and
pass/ fail rates for personnel who register for training; and

ï¿½ providing help desk and software support to ensure that the courseware is
properly installed.

ENCLOSURE 1 ENCLOSURE 1

GAO/ NSIAD- 00- 183R Selected DOD Consulting Services 29

Information System Acquisitions to Support Battlefield Communication Needs

Organization: Secretary of the Army, Office of the Director of Information
Systems for Command, Control, Communications, and Computers

Contractor: Raytheon Systems Fiscal year 1999 obligation amount: $260,000

Performance period: July 29, 1999, to December 31, 1999 To prescribe the
processes and standards for developing, managing, and using information
technology systems, the Army has established the Army Enterprise
Architecture. The architecture seeks to link the Army's information system
acquisitions with military operational requirements, ensure the
interoperability of those systems, and maintain standards by which the Army
can evaluate and acquire new systems. The Army uses contract services to
assist in maintaining overall management control of information system
acquisitions, linking military operational requirements to concepts for
information systems, translating these information system concepts into
specific system requirements, and developing investment strategies to
evaluate and acquire new information systems.

Raytheon provides detailed engineering analyses that assist the Army in
allocating radios, computers, and other equipment among individual Army
units so that communications can take place while these units are moving
around on the battlefield. Raytheon has been providing these services to the
Army since 1998. Examples of services provided during the performance period
include

ï¿½ conducting engineering analyses of radios, computers, and other
communication equipment needed by mobile Army units;

ï¿½ conducting detailed technical analyses to ensure that the mobile Army
units can interact with fixed Army units such as air defense and artillery;

ï¿½ preparing technical analyses for review boards on technical design
tradeoffs and potential operational effects of equipment design changes; and

ï¿½ developing a list of radios, computers, and other communication equipment
that can be acquired for various mobile and fixed Army units positioned on
the battlefield.

ENCLOSURE 1 ENCLOSURE 1

GAO/ NSIAD- 00- 183R Selected DOD Consulting Services 30

Improve the Quality of DLA's Financial Management

Organization: Defense Logistics Agency Contractor: KPMG Peat Marwick Fiscal
year 1999 obligation amount: $763,258

Performance period: August 6, 1999, to August 5, 2000 To comply with the
requirements of the Chief Financial Officers Act of 1990 9 and other
initiatives, the DLA has an ongoing effort to improve its financial
processes and reports. DLA has obtained the services of KPMG Peat Marwick to
assist it in obtaining an unqualified audit opinion on its financial
statements and to correct financial management deficiencies.

KPMG Peat Marwick has provided these services to DLA in prior years.
Examples of services being provided during the performance period include

ï¿½ compiling and reconciling financial data for monthly reports;

ï¿½ developing a standardized process and format for submitting, producing,
and presenting financial reports, including the annual Chief Financial
Officer statement;

ï¿½ independently reviewing financial statements to ensure that needed data is
included, properly documented, and consistent; and

ï¿½ analyzing financial operations and reporting processes, such as those
related to data validation, and developing recommendations for improving
those processes.

9 P. L. 101- 576.

ENCLOSURE 1 ENCLOSURE 1

GAO/ NSIAD- 00- 183R Selected DOD Consulting Services 31

Develop a Vision and Organizational Structure for DLA in the New Millenium

Organization: Defense Logistics Agency Contractor: KPMG Peat Marwick Fiscal
year 1999 obligation amount: $298,623

Performance period: March 17, 1999, to July 14, 1999 In early 1999, DLA
initiated a review of its organizational structure. DLA employee and
management groups were charged with examining the current organizational
structure in light of changes in the agency's missions, roles, and
responsibilities; identifying opportunities to improve the agency's
efficiency and effectiveness; and developing a new organizational structure
and vision for the agency.

To support and facilitate the groups' efforts, DLA obtained the services of
KPMG Peat Marwick beginning in March 1999. Examples of services provided
during the performance period include

ï¿½ developing processes such as a timeline and background materials to guide
the various groups' meetings as they examined organizational alternatives;

ï¿½ arranging seminars where industry leaders spoke with DLA officials on
various aspects of reorganization;

ï¿½ providing information on commercial best practices for use in the groups'
deliberations;

ï¿½ compiling and analyzing data on the different functions individuals
performed throughout the agency; and

ï¿½ assisting with administrative matters, including preparing and
distributing the minutes of the groups' meetings.

ENCLOSURE 1 ENCLOSURE 1

GAO/ NSIAD- 00- 183R Selected DOD Consulting Services 32

Develop an Activity- based Cost Model for DLA's Corporate Administration

Organization: Defense Logistics Agency Contractor: Vector Research Inc.
Fiscal year 1999 obligation amount: $200,000

Performance period: March 9, 1999, to September 30, 2000 To focus management
on continuous improvement, DLA is implementing an activity- based cost
program, which maintains and processes data on a firm's activities and
products.

To develop an activity- based cost model, DLA obtained the services of
Vector Research Inc. beginning in March 1999. Examples of services being
provided during the performance period include

ï¿½ defining cost objectives and work tasks that involve labor costs for all
organizational elements within DLA's Corporate Administration, including the
identification of cost components for particularly complex tasks;

ï¿½ developing, administering, and analyzing an automated labor survey
instrument to identify work tasks that were being performed by DLA personnel
within Corporate Administration;

ï¿½ developing an initial activity- based costing model using an Excel
spreadsheet format with a more complex model being developed and supported
by a database consisting of both labor and nonlabor costs;

ï¿½ facilitating the establishment of a program to develop performance
measures and identify cost savings; and

ï¿½ training DLA personnel, initially on the elements of activity- based
costing, with future training planned to explain the development and
operation of the final activity- based costing model.

ENCLOSURE 1 ENCLOSURE 1

GAO/ NSIAD- 00- 183R Selected DOD Consulting Services 33

Develop and Maintain DLA's Safety and Health Information Reporting System

Organization: Defense Logistics Agency Contractor: Synergy Inc. Fiscal year
1999 obligation amount: $97,672

Performance period: December 21, 1998, to December 31, 1999 Under federal
regulations, DLA, like all other federal agencies, is required to collect
and evaluate occupational safety and health data. 10 To fulfill this
requirement, DLA uses its Safety and Health Information Reporting System.
The reporting system, established in 1995, serves as a database for tracking
work- related injuries and illnesses, as well as safety hazards and
inspections. The database can be queried to produce trend analyses,
performance measures, and other data.

To assist in the analyses and maintenance of the database, DLA acquired the
services of Synergy Inc. beginning in December 1998. Examples of services
provided during the performance period include

ï¿½ querying the database to extract and analyze data to produce monthly,
quarterly, and annual reports, as well as to provide data on an as- needed
basis for management decisions;

ï¿½ preparing the DLA Safety Management Plan, which incorporated the
contractor's research on commercial best practices and performance measures
for evaluating DLA's safety and health program performance;

ï¿½ assisting field activities in carrying out their own queries of the
database; and

ï¿½ performing routine checks of the system to ensure the consistency and
accuracy of data. 10 29 CFR 1960 subpart I requires the collection and
compilation by agencies of occupational safety and health data for proper
evaluation and necessary corrective action.

ENCLOSURE 1 ENCLOSURE 1

GAO/ NSIAD- 00- 183R Selected DOD Consulting Services 34

Develop Improved DLA Procedures for Collecting and Reporting Hazardous Waste
Disposal Information

Organization: Defense Logistics Agency Contractor: Louis Berger and
Associates, Inc. Fiscal year 1999 obligation amount: $90,000

Performance period: September 30, 1999, to June 30, 2000 In 1999, the DOD
Inspector General conducted a DOD- wide audit of the costs, quantities,
budget formulation, and review processes related to DOD hazardous waste
disposal. The Inspector General recommended that DLA issue policy that
specifies standard procedures for reporting budget estimates and data on
progress toward meeting DOD's goal of reducing the amounts of hazardous
waste disposal.

DLA contracted with Louis Berger and Associates beginning in September 1999
to develop improved standardized procedures for DLA subordinate
organizations to report consistent and validated hazardous waste budget data
and progress in meeting DOD's hazardous waste reduction goal. Examples of
services being provided during the performance period include

ï¿½ preparing a work plan containing things such as a list of detailed project
objectives and planning assumptions;

ï¿½ on the basis of six site visits, preparing a needs assessment report
documenting what is needed for improved data collection and reporting of
hazardous waste disposal within DLA;

ï¿½ evaluating alternative data reporting systems by visiting organizations
outside DLA such as the Naval Facilities Engineering Service Center; and

ï¿½ recommending data collection and reporting procedures for hazardous waste
budget estimates and hazardous and non- hazardous waste data reported to the
Deputy Under Secretary of Defense (Environmental Security) within the Office
of the Secretary of Defense.

ENCLOSURE 2 ENCLOSURE 2

35 GAO/ NSIAD- 00- 183R Selected DOD Consulting Services

AGENCY COMMENTS

ENCLOSURE 3 ENCLOSURE 3

36 GAO/ NSIAD- 00- 183R Selected DOD Consulting Services

SCOPE AND METHODOLOGY Our objective was to describe the advisory and
assistance and other services obtained by the Office of the Secretary of
Defense; the Secretariats of the Air Force, the Navy, and the Army; and
Headquarters, Defense Logistics Agency, with fiscal year 1999 obligations.
At each of the five Department of Defense (DOD) organizations, we
interviewed budget officials to identify how information on the advisory and
assistance services and other services was accumulated and categorized. A
selection of 30 contracts from fiscal year 1999 obligations for these
services was taken from the 5 DOD organizations as discussed below. We then
interviewed program officials and reviewed supporting documentation to
obtain information on the services procured.

For the Office of the Secretary of Defense, we selected 10 contracts from
the Office of the Secretary of Defense (Acquisition and Technology), the
activity with the highest amount of obligations for advisory and assistance
services and other services. On the basis of committee interest, we selected
five contracts associated with the largest obligations by the Office of the
Secretary of Defense's Study Program, which provides funding for contract
advisory and assistance services by various staff offices, and the five
contracts associated with the largest obligations for advisory and
assistance and other services by the Deputy Under Secretary of Defense
(Acquisition Reform).

For the Secretariats of the Air Force and the Army, we selected 10 contracts
from the activities with the highest amount of obligations for advisory and
assistance services and other services. We selected five contracts
associated with the largest obligations for these services from the Office
of the Assistant Secretary of the Air Force (Acquisition) and from the
Army's Office of the Director of Information Systems for Command, Control,
Communications, and Computers.

For the Secretary of the Navy, we selected five contracts from the Office of
the Assistant Secretary of the Navy (Research, Development, and
Acquisition), the activity with the highest amount of obligations for
advisory and assistance services and other services. Because of Navy
concerns that selecting the five largest obligations would cover only
efforts to support the Standard Procurement System and paperless initiative,
we selected the two largest obligations associated with the Standard
Procurement System and the three largest obligations from other contract
support services.

For Headquarters, Defense Logistics Agency, we selected five contracts
associated with the largest obligations for advisory and assistance and
other services.

(707438)

ORDERS BY INTERNET For information on how to access GAO reports on the
INTERNET, send an e- mail message with “info” in the body to

Info@ www. gao. gov or visit GAO's World Wide Web Home Page at http:// www.
gao. gov TO REPORT FRAUD, WASTE, AND ABUSE IN FEDERAL PROGRAMS

Contact one:

ï¿½ website: http:// www. gao. gov/ fraudnet/ fraudnet. htm

ï¿½ e- mail: fraudnet@ gao. gov

ï¿½ 1- 800- 424- 5454 (automated answering system)
*** End of document. ***