Report on FY 2006 DoD Purchases Made Through the Department of the Treasury

Abstract : This report is one of a series of reports on DoD purchases made through non-DoD activities. For each covered non-Defense agency, Section 811 of Public Law 109-163, "National Defense Authorization Act for Fiscal Year 2006," requires the DoD Inspector General and the Inspector General of such non-DoD agency to jointly review procurement policies, procedures, and internal controls of such non-Defense agency that are applicable to the procurement of property and services on behalf of the Department by such non-Defense agency." The joint review was to determine whether the non-Defense agency was in compliance with DoD procurement policies, procedures, and internal controls. If the non-Defense agency was not compliant, a second review the following year was required. At the conclusion of our initial review, we jointly informed staffers working for the Senate Armed Services Committee that contracting and finding issues existed at FedSource resulting in noncompliance with DoD procurement policies. To perform the audit, we and the Department of the Treasury, Office of the Inspector General jointly revisited FedSource. FedSource processed 26,344 contract actions consisting of task orders and modifications in FY 2006 amounting to $404.1 million and received 4,533 military interdepartmental purchase requests totaling $207.3 million to fund DoD requirements.