Army Personnel Complied With the Berry Amendment But Can Improve Compliance With the Buy American Act

On November 7, 2014, the Inspector General, Department of Defense, issued the report Army Personnel Complied With the Berry Amendment But Can Improve Compliance With the Buy American Act.

Findings

Army Contracting Command (ACC) personnel at three locations substantially complied with the Berry Amendment for 29 of the 33 contracts reviewed, with an obligated value of about $124.6 million. However, ACC contracting personnel did not include the Berry Amendment implementing clause within the basic contract for 4 of the 33 contracts, but took corrective actions to add the required clause.

ACC contracting personnel can improve compliance with the Buy American Act. For 50 Buy American Act contracts with an obligated value of about $4.7 million, ACC contracting personnel:

• did not complete required component assessments for 23 contracts because for 16 contracts they did not differentiate between commercial and commercial off‑the-shelf items and for 7 contracts because they relied upon contractor assertions not specific to the items under contract;

• omitted the Buy American Act implementing clause in 4 contracts; and

• issued a contract for goods from a non-qualifying country.

As a result, ACC contracting personnel could not demonstrate that all the procured items complied with domestic content requirement, and suppliers could have provided noncompliant items. Additionally, ACC contracting personnel may have committed an Antideficiency Act violation.