Defense Reutilization and Marketing Service Public/Private Competition

Abstract : The audit was performed in response to a request from Congressman John M. McHugh of New York. Congressman McHugh asked us to review a constituent's allegations relating to the Office of Management and Budget Circular A-76 public/private competition to provide logistics services at 10 Defense Reutilization and Marketing Service offices. The constituent alleged that the selection process was biased and designed to support the award of a contract to Resource Consultants, Incorporated, because the contractor's program director was a close friend of the Commander of the Defense Reutilization and Marketing Service. The constituent also alleged that the contractor was not sufficiently staffed to perform the required logistics functions and intended to default on the contract. The objective of the audit was to determine the merit of the allegations.