Press Release: Audit of the Army’s Award of Noncompetitive Contracts in Support of Ukraine (Report No. DODIG-2024-078)

Inspector General Robert P. Storch announced today that the Department of Defense Office of Inspector General released the "Audit of the Army's Award of Noncompetitive Contracts in Support of Ukraine."

IG Storch stated, "In this audit, the OIG found that Army contracting officers were justified in awarding noncompetitive contracts supporting Ukraine. However, our report highlights that there are still areas where contracting officers can improve to meet all Federal, DoD, and Army requirements."

This report identified that the Army's award of noncompetitive contracts in support of Ukraine was generally in accordance with Federal, DoD, and Army regulations and guidance. For the 13 contracts reviewed, valued at $1.3 billion, contracting officers were justified in awarding noncompetitive contracts. Although the validity of those contracts was not affected, the audit identified four administrative areas in needing improvement: documentation for follow-on acquisitions, citation of specific authority for awarding noncompetitive contracts, publication of the justification, and timing for justification approval.

To address these issues, the DoD OIG recommended that Army officials develop and implement a quality control tool and applicable training to address the deficiencies identified. Full compliance with Federal, DoD, and Army requirements helps ensure that the Government obtains the best products and services to meet its needs. The DoD OIG will continue monitoring the progress of the unresolved recommendation until it is fully implemented.

This report is the first report of two on the Army's award and administration of noncompetitive contracts in support of the Ukraine response. It focuses on the award of the contracts; the second report will focus on the administration of the contracts.