Contract Administration of the Ice Delivery Contract between International American Products, Worldwide Services and the U.S. Army Corps of Engineers during the Hurricane Katrina Recovery Effort

Abstract : The U.S. Army Corps of Engineers Principal Assistant Responsible for Contracting requested a review on the administration of the ice delivery process between International American Products, Worldwide Services and the U.S. Army Corps of Engineers. The U.S. Army Corps of Engineers Charleston District did not effectively administer the 2003 ice delivery contract for the Hurricane Katrina recovery effort. The Corps Charleston District did not provide adequate training and guidance for invoice processing over the National Ice/Water Mission. They made inaccurate or inadequately supported payments on 142 of the 342 invoices received in the amount of about $262,000. These included underpayments of about $79,000 and overpayments of about $183,000. The end result was an overpayment of nearly $104,000. Also, the invoices may have additional monetary impact that the Inspector General (IG), DoD was not able to quantify because of the lack of supporting documentation. In addition, FEMA's redirection of trucks caused unauthorized expenditure of Government funds for onward miles and standby time. The U.S. Army Corps of Engineers should provide training on procedures for accepting ice and documenting ice deliveries, and finalize the standard operating procedures for processing invoices. The Corps Charleston District should recoup $103,723.52 in overpayments from International American Products, Worldwide Services. In addition, the U.S. Army Corps of Engineers should examine the accuracy of the data provided by the automated tracking system required by the 2006 ice delivery contract and determine whether future ice delivery contracts should include the use of automated tracking systems to process invoices. The Corps Charleston District personnel can improve internal controls for administering ice delivery contracts by ensuring that personnel performing the National Ice/Water Mission are provided with the appropriate guidance and are properly trained.