Army Corps of Engineers: Known Performance Issues with New Orleans Drainage Canal Pumps Have Been Addressed, but Guidance on Future Contracts Is Needed
Highlights
Hurricane Katrina caused several breaches in the floodwalls along three drainage canals in New Orleans, contributing to catastrophic flooding. To restore the pre-Katrina level of hurricane-related flood protection, the Army Corps of Engineers (Corps) decided to acquire several large-capacity pumping systems. During the process of acquiring, testing, and installing the pumping systems, issues with the pump contract and operation of the pumping systems came to light, including several identified in a Corps Independent Team Report (ITR). GAO was asked to evaluate the Corps' efforts to (1) develop contract specifications and award the contract, (2) address pumping system performance issues, (3) document contract modifications, and (4) reconcile contract payments. GAO reviewed contract and testing documents, observed the operation of the pumping system, and interviewed officials from the Corps, its consultants and contractors, and the ITR team.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | While we recognize that this procurement was conducted under exigent circumstances, we believe that the procedures used by the Corps could be improved for future procurements. For this reason, the Secretary of Defense should direct the Commanding General and Chief of Engineers of the U.S. Army Corps of Engineers to take steps, through additional guidance or otherwise, to reinforce the importance of adherence to sound acquisition practices, even during expedited procurements, including ensuring that important contract provisions, such as any required testing, are clear so that the contractor and the government understand what conditions or criteria must be met for successful completion of the contract. |
Closed – Implemented
On February 25, 2008, the Corps distributed a memorandum to all of its Division and District Commanders reinforcing the lessons learned from our review. More specifically, the memorandum stated that the lesson learned is that technical specifications, such as those required for equipment testing, need to provide a clear understanding to the contractor and the government about the conditions or criteria that must be met for successful completion of the contract.
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| Department of Defense | While we recognize that this procurement was conducted under exigent circumstances, we believe that the procedures used by the Corps could be improved for future procurements. For this reason, the Secretary of Defense should direct the Commanding General and Chief of Engineers of the U.S. Army Corps of Engineers develop procedures to ensure that any required contract-related documentation, including that related to contract pricing, is completed and filed within a reasonable period of time. |
Closed – Implemented
On September 29, 2008, the Department of Defense issued a memorandum establishing DOD's policy for peer reviews of contracts for supplies and services. The memorandum states that the objective of the peer reviews is threefold: (1) to ensure that Contracting Officers across the Department are implementing policy and regulations in a consistent and appropriate manner; (2) to continue to improve the quality of contracting processes across the Department; and (3) to facilitate cross-sharing of best practices and lessons learned across the Department. Moreover, the memorandum establishes the processes for conducting pre and post-award peer reviews, the timing for conducting such reviews, and provides a list of the documents that will be made available to the review team and the specific elements the team will examine.
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