Black Crevasse Forum > Antarctic Discussion

New Contract

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Meat Popsicle:
The two companies I was really hoping would not make the cut were Transpolar, and ARS-CSC.  So that's a good thing.

I need to contact my contacts at ITT, KBR, and Lockheed Martin.

Meat Popsicle:
My prediction of another 1 year extension has come to pass.

Anyone want to bet me about a congressional investigation?

Anyone?

Anyone?

Bueller?

Nick:
Here is an audit of RPSC by the Defense Contract Audit Agency in 2005:  It is long, but worth reposting as evidence that Raytheon should not be considered for future contracts in the Antarctic Program.

Excerpts:

"We reviewed the contractor’s petty cash policy for the Denver Headquarters (HQ) office and did not see any direction as it pertains to the treatment of unallowable costs. We tested the contractor’s policy for petty cash against actual costs incurred through the petty cash process and determined that 60% of the transactions that flow through petty cash are unallowable based on FAR 31.205. Most of the items related to gifts and prizes for HQ personnel for non-contract type events such as an Extreme Cube Makeover, Photography Interest Group, Summer Picnic Food and Prizes, and Clean Your Workstation Day."

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"The lack of sufficient and compliant controls has resulted in (1) numerous instances of expressly
unallowable costs being charged to the government and, (2) insufficient documentation of
transactions for costs incurred and billed to the contract for which the allowability of the costs to
the contract can not be readily determined. Some examples of transactions that demonstrate the
lack of internal controls are as follows:

•An invoice from Harry & David’s gourmet was reviewed which disclosed that a tower of chocolates was purchased as a holiday gift from the Program Manager to an unspecified recipient.

•Two (2) charges for Dave and Busters on a pro-card statement with no supporting documentation. The charges were for $998.00 and $972.57. This would have been considered entertainment expense based on FAR 31.205-14.

•The contractor submitted a Lowes Home Improvement receipt with a pro-card statement
for air conditioning supplies. The purpose of the purchase was not stated. The
documentation is considered insufficient.

•The contractor paid charges on a pro-card statement for various amounts that were not
supported and are likely personal purchases. Purchases at Virgin Body Care Inc. which
sells herbal, nutritional and food supplement items. Purchases were also made at the
Raining Rose which specialize in all natural, handcrafted body care products, soaps,
shampoos, lotions, shower gels, and so forth. These costs are considered unallowable
based on FAR 31.201-2(d). There was also a charge for a Colorado Restaurant
Association membership. The association with the Polar Services contract was not
established.

•The contractor submitted invoices related to the rental of tables, chairs, water barrels,
and so forth for purposes of a barbeque. The rental equipment was provided by Butler
Rents. The barbeque was catered by Franks Barbeque. No purpose was stated. The
function was held around the time frame of the 4th of July. The charges were related to
the pro-card statement. The credit card statement was approved by management and the
amounts appear to be expressly unallowable although no purpose was stated for the
costs.

•An invoice for 548 Souvenir Baseball caps was questioned. The invoice was presented
with a purchase order which failed to identify the purpose of the baseball caps in relation
to the performance of the contract. The invoice was initialed by a finance person and the
purchase order was not signed. This cost is considered unallowable based on FAR
31.205-13(b).

•Several transactions related to the pre-season social to include wine, ice sculptures,
quartets, flowers, and so forth were charged direct to the contract. These items while
approved by management for reimbursement under the contract are unallowable based
on FAR 31.205-13, FAR 31.205-14, and FAR 31-.205.51.

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