Fraud, Waste, and Abuse and Contingency Contracts: A Critical Assessment of Dod and Army Processes

The thesis addresses the fraud, waste, and abuse (FWA) issues associated with contingency contracts that DoD has faced for the last nine years. The topic was chosen because of the potential impact it could have on the national debt, military pay freezes, and retirement for military service members. My primary research question is what programs or processes has DoD initiated to mitigate FWA within government contracting, and, have any initiatives been effective? After nine years of conflict the nation now faces its biggest economic crisis in U.S. history with a national deficit at $1.64 trillion. By 2009, Congress has appropriated nearly $888 billion to pay for U.S operations in Iraq and Afghanistan. The Pentagon estimated that $10 billion was misspent or lost in related contracts valued at $57 billion. The thesis cites several federal agencies who identified systemic contributing factors to FWA in contracting. These areas include: (1) sustained leadership, (2) capable acquisition force, (3) adequate pricing, (4) appropriate contracting approaches and techniques, and (5) sufficient contract surveillance. The study further identifies DoD's 2008-2010 initiatives to combat the systemic issues including restructuring the Army Material Command to establish a subordinate Army Contracting Command. In conclusion, the findings in this report indicate that DoD has implemented effective changes across the Army's DOTMLP domains in order to combat, deter, and reduce FWA. However, FWA continues to stain military contracts.