SECNAV orders audit of port services

Secretary of the Navy Ray Mabus Secretary of the Navy Ray Mabus

DECEMBER 10, 2013 — Secretary of the Navy Ray Mabus has ordered a review and audit of procedures, administration, and performance of all husbanding and port services contracts.

In a December 5 memorandum he notes that "recent investigations by the Naval Criminal Investigative Service (NCIS) and audits by the Naval Audit Service" of these contracts "raise concerns with respect to the procedures, administration, and
performance of these contracts."

That investigation has already led to a trail of arrests and seen two admirals implicated. And last month one of the world's largest suppliers of husbanding services was suspended from doing business with the Navy on the recommendation of the DON Acquisition Integrity Office  based upon evidence of conduct indicating questionable business integrity.

The new memorandum provides details and additional tasking to guidance Secretary Mabus  directed in September

"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, noting that "throughout the course of your reviews and audits, you shall coordinate with the NClS. At no time, shall your work interfere with any ongoing Federal law enforcement
investigation."

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 Secretary 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.

Read the memo HERE

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