Iraqi Security Forces Facilities: Environmental Chemical Corporation Projects Achieved Results, but with Significant Cost Increases and Schedule Delays

Abstract : Public Law 108-106, as amended, requires that the Special Inspector General for Iraq Reconstruction (SIGIR) prepare a final forensic audit report "on all amounts appropriated or otherwise made available for the reconstruction of Iraq." To help fulfill this requirement, SIGIR has undertaken a series of audits examining major Iraq reconstruction contracts. The objective of these audits is to examine contract cost, outcome, and management oversight, emphasizing issues related to vulnerabilities to fraud, waste, and abuse. This report provides the result of SIGIR's audit of task orders totaling $1.12 billion primarily for Iraq reconstruction projects completed under two contracts awarded by the Air Force Center for Engineering and the Environment (AFCEE) to the Environmental Chemical Corporation (ECC): the first in November 2003 (FA8903-04-D-8672) and the second (FA8903-06-D-8511) in April 2006. Work under these contracts was funded through both the Iraq Relief and Reconstruction Fund and the Iraq Security Forces Fund. SIGIR identified ECC as one of the contractors receiving the most dollars under both funds.