U.S. Navy to Audit Port Services

Wednesday, December 11, 2013

Secretary of the Navy Ray Mabus spelled out in a memorandum last week his expectations for the review and audit of procedures, administration, and performance of all husbanding and port services contracts.

The memorandum, dated Dec. 5, provides details and additional tasking to guidance Mabus originally directed in September, in light of investigations by the Naval Criminal Investigative Service (NCIS) and audits by the Naval Audit Service of husbanding and port service contracts.

"Back in September, I directed a complete review of our husbanding and port services contracts following the investigation into contracting procedures in the Pacific Fleet. This tasking memo reiterates the urgency of that review and provides additional tasking," said Mabus.

Assistant Secretary of the Navy (Research, Development and Acquisition) (ASN (RD&A) Sean Stackley will review the acquisition strategies for husbanding and similar service contracts worldwide. Additionally, the Auditor General of the Navy (AUDGEN) will audit husbanding and port services contracts to identify ways to improve internal controls for the delivery of goods and services, contract administration, and eventual payment to contractors.

"This review will ensure we have the proper procedures and policies in place to ensure we live up to our responsibility to the American taxpayer," said Mabus. "This is a responsibility I take seriously, and we will take the necessary steps to ensure we do not violate their trust."

ASN (RD&A)'s final report, including recommendations, will be due Jan. 31, 2014. The AUDGEN's report will be due no later than June 2, 2014.


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