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GAO Recommends DoD Issue Criteria for Monitoring Utilities Contracts

The Defense Department has received a recommendation from the Government Accountability Office directing military departments and the Defense Logistics Agency to follow a criteria for measuring the performance of utilities privatization contracts.

The GAO said in a report published Tuesday that military departments have failed to note the costs and reliability of utility commodities and modifications, as well as evaluate contractor performance during utility privatization efforts for military installations.

The agency believes the DoD will have a difficult time managing utility reformation programs and long-term procurement vehicles without a standard for monitoring the performance of such contracts.

GAO also recommended the DoD develop procedures that inform military departments about contractor defense information related to utilities privatization contracts.

The DoD includes a clause in its utilities privatization contracts that requires contractors to protect data processed, stored and transmitted in their information or industrial control systems.

DLA and military department officials have admitted to not implementing the clause so that DoD can develop procedures pointing out the contractor’s defense information associated with utilities privatization contracts.

The procedures will assure military departments and DLA that such information are secure.

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