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Audit: Robins depot overpaid contractors by up to $24 million | News

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Audit: Robins depot overpaid contractors by up to $24 million
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A federal audit says Warner Robins' Air Logistics Center overpaid three contractors by as much as $24 million.



Those are the conclusions of an audit by the Department of Defense's Inspector General.

Their report says the base failed to negotiate proper rates for work done by workers at the ALC for those contractors. The audit cites contracts with Boeing, for repairs to the C-17 aircraft; Northrup Grumman, for a low-power color radar system; and to Honeywell, for electronic components used in the F-15E aircraft.

All three contracts, the Inspector General writes, are no-bid, "sole-source contracts." All three contracts are based on the contractor figuring their costs and adding on a fixed profit -- based in part on whether the work ins considered high- or low-risk. But part of the work for all three contracts was done at the ALC for base employees.

The Inspector General's audit argues that work done at the ALC should always be rated low-risk. That means the contractor should earn a lower profit margin.
Numbers for the contractor's profits and percentages are blacked out of the audit report posted on the Inspector General's website.

Depending on the type of partnership agreement, the audit says, Robins could have saved anywhere from $9.6 million to $24.9 million. Unless the base looks closely at its agreement with contractors, the report says, "contracting officials may not consider reducing these costs in their analysis, profit values will likely remain questionable and an opportunity to save funds will be missed."

Robins spokesman Roland Leach referred questions on the matter to the Air Force Sustainment Center. They could not be reached for comment.

The audit was based on a random check of three out of 33 partnerships and contracts at the Robins depot.

 


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