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 <subject>Audit reports</subject>
 <subject>Contract administration</subject>
 <subject>Contract negotiations</subject>
 <subject>Contractor payments</subject>
 <subject>Cost plus award fee contracts</subject>
 <subject>Defense audits</subject>
 <subject>Defense procurement</subject>
 <subject>Department of Defense contractors</subject>
 <subject>Evaluation criteria</subject>
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<titleInfo>
 <title>Defense Contract Management: DOD&apos;s Lack of Adherence to Key Contracting Principles on Iraq Oil Contract Put Government Interests at Risk</title>
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<abstract>The Department of Defense&apos;s (DOD) U.S. Army Corps of Engineers
(Corps) awarded the $2.5 billion Restore Iraqi Oil (RIO I)	 
contract to Kellogg Brown &amp; Root in March 2003 in an effort to	 
reestablish Iraq&apos;s oil infrastructure. The contract was also used
to ensure adequate fuel supplies inside Iraq. RIO I was a	 
cost-plus-award-fee type contract that provided for payment of	 
the contractor&apos;s costs, a fixed fee determined at inception of	 
the contract, and a potential award fee. The Defense Contract	 
Audit Agency (DCAA) reviewed the 10 RIO I task orders and	 
questioned $221 million in contractor costs. We were asked to	 
determine (1) how DOD addressed DCAA&apos;s RIO I audit findings and  
what factors contributed to DOD&apos;s decision and (2) the extent to 
which DOD paid award fees for RIO I and followed the planned	 
process for making that decision. To accomplish this, we reviewed
DOD and DCAA documents related to RIO I and interviewed Corps,	 
DCAA, and other officials.</abstract>
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<identifier type="preferred citation">GAO-07-839</identifier>
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 <searchTitle>GAO-07-839; Defense Contract Management: DOD&apos;s Lack of Adherence to Key Contracting Principles on Iraq Oil Contract Put Government Interests at Risk;
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 <topic>Contract administration</topic>
 <topic>Contract negotiations</topic>
 <topic>Contractor payments</topic>
 <topic>Cost plus award fee contracts</topic>
 <topic>Defense audits</topic>
 <topic>Defense procurement</topic>
 <topic>Department of Defense contractors</topic>
 <topic>Evaluation criteria</topic>
 <topic>Internal audits</topic>
 <topic>Questionable procurement charges</topic>
 <topic>Requirements definition</topic>
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