A new audit from the Defense Department’s Office of Inspector General says the Army Contracting Command-Redstone Arsenal and U.S. Army Medical Research Acquisition Activity’s firm-fixed‑price contract awards complied with federal rules.
DoD’s IG reviewed 15 out of 73 contract actions from ACC‑RA and USAMRAA research and development efforts for medical, software development and engineering services and determined the firm‑fixed‑price level‑of‑effort term contracts and task orders were properly administered, DoD IG said Tuesday.
“During FY 2014 and FY 2015, ACC‑RA and USAMRAA awarded 73 FFP LOE term contract actions totaling $332 million,” according to the audit report.
DoD IG said ACC‑RA and USAMRAA contracting officials justified the use of firm‑fixed‑price level‑of‑effort term contract for the nine contracts and six task orders examined.
“As a result, DoD Components benefited by using firm‑fixed‑price level‑of‑effort term contracts that allowed contractors the flexibility to develop innovative research and new technologies in support of the warfighter,” the IG added.