Georgia Tech Procurement Assistance Center

  • Home
  • About Us
  • Training
    • Class Registration
    • On-demand Training
    • GTPAC COVID-19 Resource Page
    • Cybersecurity Video
    • Veterans Verification Video
    • GTPAC Community
    • Other Training Audio & Video
  • Useful Links
  • Team Directory
    • Albany Counselor
    • Athens Counselor
    • Atlanta Counselors
    • Augusta Counselor
    • Carrollton Counselor
    • Columbus Counselor
    • Gainesville Counselor
    • Savannah Counselor
    • Warner Robins Counselor
  • Directions
    • Athens
    • Atlanta – Training Facility
    • Atlanta – Office
    • Albany
    • Augusta
    • Carrollton
    • Columbus
    • Gainesville
    • Savannah
    • Warner Robins
  • COVID-19
  • New Client Application
  • Contact Us

DoD auditors fault Northrop Grumman for BAMS invoices

January 7, 2011 By ei2admin

The Navy gave Northrop Grumman as much as $300,000 in profit for filling out $3 million worth of travel expense forms–and some of those expenses should have never been approved, says the Defense Department inspector general.

In a Dec. 23 report on the Navy’s $1.8 billion Broad Area Maritime Surveillance system development and demonstration cost plus contract, auditors find that Northrop Grumman submitted at least $206,000 worth of travel vouchers for trips to golf outings and air shows in Washington, D.C., Paris and Singapore. While the Defense Department recovered that money from Northrop Grumman, a company official told auditors that they have not reviewed all travel vouchers or other charges related to the BAMS contract.

“There is a potential for additional unallowable expenses charged and paid to the BAMS contractor,” the report warns. BAMS is a unmanned aircraft system based on the Global Hawk meant to perform persistent intelligence, surveillance and reconnaissance within a range of 2,000 nautical miles. Naval Air Systems Command awarded in April 2008 Northrop a BAMS development contract with a fixed base award fee of 3 percent with an additional 7 percent award fee tied to performance. A “fee” is often how the government dubs “profit.”

Although legitimate travel is an allowable cost under cost plus contracts, auditors say they question giving contractors any fee at all tied to travel expenses, since “it is difficult to evaluate the contractor’s performance on travel.” But in the case of Northrop’s BAMS travel vouchers, the performance was arguably bad enough to preclude it from receiving any award fee, the report says. NAVAIR officials told auditors they’ll consider making travel just a cost reimbursement line item in future procurements.

The report also faults Navy personnel for not reviewing Northrop Grumman bills or going through the government acceptance process before issuing payment. Invoices from the company didn’t itemize amounts billed by labor hour, materials and other costs. For example, one invoice for $22.6 million simply stated that it was a bill for a “cost plus item” and that the unit of measure was “each” with a quantity of “one.”

For more: download the report, D-2011-028 (.pdf)

— Jan. 3, 2010, posted at www.fiercegovernmentit.com

Filed Under: Contracting News Tagged With: DoD, IG, Navy

Recent Posts

  • DoD publishes long awaited interim rule on CMMC
  • GSA Region 4 OSDBU hosting small business webinar
  • GTPAC launches COVID-19 resource page
  • GDEcD seeks GA Manufacturers and Distributors that can help with critical health care supply needs related to COVID-19
  • Georgia DOAS to hold 4th Annual Georgia Procurement Conference April 21-23, 2020

Popular Topics

8(a) abuse Army bid protest budget budget cuts certification construction contract awards contracting opportunities cybersecurity DoD DOJ False Claims Act FAR federal contracting federal contracts fraud GAO Georgia Tech government contracting government contract training government trends GSA GSA Schedule GTPAC HUBZone innovation IT Justice Dept. marketing NDAA OMB SBA SDVOSB set-aside small business small business goals spending subcontracting technology VA veteran owned business VOSB wosb

Contracting News

DoD publishes long awaited interim rule on CMMC

Small business subcontracting for cloud computing gets easier

Long awaited changes to WOSB/EDWOSB regulations expected this summer

The CMMC has arrived: DoD publishes version 1.0 of its new cybersecurity framework

GSA keeping ‘on track’ with schedule consolidation

Read More

Contracting Tips

A guide to labor and employment obligations for federal contractors

Who pays for CMMC certification?

Other transaction agreements: Where does an unsuccessful bidder go?

Knowledge is power, if you know how to use it

EAJA provides relief to construction contractor for government’s bad actions

Read More

GTPAC News

GSA Region 4 OSDBU hosting small business webinar

GTPAC launches COVID-19 resource page

GDEcD seeks GA Manufacturers and Distributors that can help with critical health care supply needs related to COVID-19

Georgia DOAS to hold 4th Annual Georgia Procurement Conference April 21-23, 2020

MICC Fort Stewart hosting acquisition forecast open house on Thursday, Feb. 6, 2020

Read More

Georgia Tech News

Dr. Abdallah testifies on U.S. competitiveness, research, STEM pipeline at Congressional hearing

Georgia Tech’s Technology Square Phase III to include George Tower

Student surprises his teacher with Georgia Tech acceptance news

Georgia Tech Applied Research will support DHS information safeguarding effort

$25 million project will advance DNA-based archival data storage

Read More

  • SAM.gov registration is free, and help with SAM is free, too
APTAC RSS Twitter GTPAC - 30th Year of Service

Copyright © 2021 · Georgia Tech - Enterprise Innovation Institute