May 1994
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19 Reads
We are providing this report for your information and use. The audit was performed in response to concerns of the Chairman, Subcommittee on Readiness, House Committee on Armed Services. The concerns stemmed from constituents' allegations that U.S. firms were excluded from competing and that Korean firms were given preferential treatment for the pending contract renewal of the Eighth U.S. Army (EUSA) milk plant located at the K-l6 Airbase, Songnam, Republic of Korea (ROK). The contract renewal was for maintenance and operation of the EUSA milk plant under solicitation DAJBO3-93-R-OOO2. Also, the Chairman was concerned that the Korean firms' inexperience in producing filled milk and their potential inability to meet U.S. quality and sanitation standards could jeopardize the health, safety, and welfare of U.S personnel and their dependents, who rely on the products produced under contract at the EUSA milk plant. The primary objective of the audit was to determine whether the congressional concerns, based on constituents' allegations, were substantiated. Specifically, the audit evaluated the contract award and contract administration procedures at USACCK as they related to the EUSA milk plant. The audit also evaluated related internal controls.