Press Release: Management Advisory: Audit of Remote Maintenance and Distribution Cell–Ukraine Restructuring Contract Invoice Oversight (DODIG 2024 108)

Inspector General Robert P. Storch announced today that the Department of Defense Office of Inspector General released the "Management Advisory: Audit of Remote Maintenance and Distribution Cell-Ukraine Restructuring Contract Invoice Oversight."

The DoD OIG audit identified issues that resulted in multiple improper payments at the Remote Maintenance and Distribution Cell-Ukraine (RDC-U) in Jasionka, Poland. From February to July 2023, Army contracting personnel did not properly review contractor invoices totaling $20 million-despite known requirements and established best practices. As a result, the Army does not have assurance that the $20 million paid to the contractor as of July 2023 resulted in contractually compliant maintenance and labor services, equipment purchases, or travel. Additionally, Army personnel made nearly $30,000 in improper payments on labor invoices.

"Government employees have an obligation to administer contracts in the public interest through active and informed oversight of contractor performance," said IG Storch. "In this case, those charged with the responsibility to review contractor invoices failed to comply with these requirements, which increased the risk of DoD funds being used ineffectively or improperly."

The DoD OIG made five recommendations including that the Executive Director of the Army Contracting Command-Detroit Arsenal review the previously submitted invoices and take appropriate action. The DoD OIG also recommended implementing controls to ensure that all future invoices are reviewed and that supporting documentation is maintained to clearly and independently support payments.

The DoD OIG will monitor progress toward the implementation of these recommendations. This management advisory is the third and final of three products from the DoD OIG's audit to assess the extent to which Army contracting personnel acted in accordance with Federal and DoD policies in the administration of the Remote Maintenance and Distribution Cell-Ukraine Restructuring Contract.