SIGAR Special Inspector General for 

Afghanistan Reconstruction 

SIGAR Audit 13-1

AFGHAN NATIONAL SECURITY FORCES 

FACILITIES: CONCERNS WITH FUNDING, 

OVERSIGHT, AND SUSTAINABILITY FOR 

OPERATION AND MAINTENANCE 

OCTOBER

2012

SIGAR Audit 13-1/O&M Contracts for ANSF Facilities
For more information contact: SIGAR Public Affairs at (703) 545-5974 or sigar.pentagon.ccr.mbx.public-affairs@mail.mil. 

WHAT SIGAR REVIEWED 

In February 2011, the North Atlantic 

Treaty Organization Training MissionAfghanistan (NTM-A) developed the 

Infrastructure Training Advisory 

Group (ITAG) Campaign Plan, which 

calls for the transition of operation 

and maintenance (O&M) of Afghan 

National Security Forces (ANSF) 

facilities to the Afghan government 

and full Afghan-led sustainment by 

2014. Because the Afghan 

government currently lacks the 

capacity to provide O&M, NTM-A 

obligated $800 million to fund these 

services for ANSF facilities across 

Afghanistan until the Afghan 

government is able to handle O&M. 

In July 2010, the U.S. Army Corps of 

Engineers (USACE) awarded two 

contracts covering the northern and 

southern parts of the country to ITT 

Exelis Systems Corporation (Exelis) to 

provide O&M for ANSF facilities and 

to train ANSF workers on the required 

trade skills. As of early June 2012, 

the contracts covered 480 facilities—

about 45 percent army and 55 

percent police—ranging from large 

Corps headquarters to smaller police 

district headquarters. This report 

assesses the extent to which (1) 

NTM-A and USACE are developing the 

capacity of the ANSF to sustain its 

facilities after full transition in 2014, 

(2) Exelis has implemented the O&M 

contracts within the contracts’ terms, 

and (3) USACE and Exelis have 

provided oversight of the contracts. 

SIGAR conducted this work in seven 

provinces in Afghanistan from July 

2011 to October 2012 in accordance 

with generally accepted government 

auditing standards. 

WHAT SIGAR FOUND 

The Afghan government will likely be incapable of fully sustaining ANSF 

facilities after the transition in 2014 and the expected decrease in U.S. 

and coalition support. The Afghan government’s challenges in assuming 

O&M responsibilities include a lack of sufficient numbers and quality of 

personnel, as well as undeveloped budgeting, procurement, and logistics 

systems. We found: 

 As of June 1, 2012, the Afghan government had filled less than 

40 percent of authorized O&M positions. U.S. officials cited 

salary discrepancies between these ANSF positions and private 

sector jobs, such as contract positions, as a prime factor in the 

lagging recruitment efforts. 

 The ANSF lacks personnel with the technical skills required to 

operate and maintain critical facilities, such as water supply, 

waste water treatment, and power generation. 

 The Ministry of Defense’s procurement process is unable to 

provide the Afghan army with O&M supplies in a timely manner. 

The Ministry of Interior did not make its first budget allocation for 

O&M at police sites until March 2012. 

 As of August 1, 2012, 25 sites had started the transition process. 

However, USACE had not yet developed a plan and procedures 

 

O&M trainees repairing heating and air conditioning units of barracks at the Kabul 

Military Training Center, SIGAR site inspection, October 2011. 

SIGAR 

Special Inspector General for 

Afghanistan Reconstruction 

October 2012 

Afghan National Security Forces Facilities: Concerns with Funding, 

Oversight, and Sustainability for Operation and Maintenance 

SIGAR AUDIT 13-1 
For more information contact: SIGAR Public Affairs at (703) 545-5974 or sigar.pentagon.ccr.mbx.public-affairs@mail.mil. 

 

WHAT SIGAR RECOMMENDS 

SIGAR is making three 

recommendations to the Commander 

of the USACE Middle East District. To 

ensure that USACE funds are 

expended in accordance with the 

O&M contracts and enhance contract 

oversight, SIGAR is recommending 

that USACE (1) complete its plan and 

procedures for removing partial 

facilities from the contracts and 

reclassifying these facilities, (2) 

implement standardized procedures 

for overseeing the two contracts, and 

(3) direct Exelis to fully implement its 

quality control program in southern 

Afghanistan. USACE concurred with 

the recommendations and described 

specific steps it is taking to address 

them. 

for removing partial facilities from the contracts 

and continued to pay O&M costs for structures 

that were no longer covered under the 

contracts. 

NTM-A and USACE have taken some steps to develop 

the Afghan government’s capacity to provide O&M, such 

as training and mentoring ANSF personnel, but the 

Afghan government has resisted some of these 

measures. For example, the Ministry of Interior would 

not add O&M positions, even though it acknowledged 

that ANP facility engineer sections need to grow to meet 

increased demand. 

With respect to USACE’s contracts to provide O&M until 

the Afghan government develops the necessary 

capacity, we found that Exelis generally invoiced and 

provided O&M services in accordance with the terms of 

the contracts. Exelis had difficulty mobilizing during the 

initial phase of the contracts, slowing contract 

implementation. 

 Factors outside the contractor’s control, 

including harassment of contractor personnel, 

poor construction quality, and irregular fuel 

deliveries, disrupted O&M services and, if this 

continues, may lead to increases in contract 

costs. 

 NTM-A analysis projects that the northern 

contract will run out of funding in March 2014, 

16 months before the end of the contract 

period of performance. As a result, USACE will 

have to award and fund a new contract to 

provide continued O&M coverage. 

Oversight varied across and within the two O&M 

contracts, which may decrease USACE’s ability to 

ensure that Exelis is providing services in accordance 

with contract requirements. 

 USACE officials implemented ad hoc oversight 

and reporting procedures to oversee the two 

contracts in lieu of standardized quality 

assurance procedures, causing variations in 

the quality of reporting and frequency of site 

inspections. 

 Implementation of Exelis’ quality control 

program in the south was incomplete. Exelis 

conducted few site visits to facilities in the 

south, and the contractor had not staffed hub 

locations in two southern provinces. 

 

Main electrical panel at Police District 3 in 

Kabul, SIGAR site inspection, January 2012.
October 30, 2012 

The Honorable Leon Panetta 

 Secretary of Defense 

General James N. Mattis 

 Commander, U.S. Central Command 

General John R. Allen 

 Commander, U.S. Forces – Afghanistan, and 

 Commander, International Security Assistance Force 

Lieutenant General Daniel P. Bolger 

 Commanding General, NATO Training Mission-Afghanistan/ 

 Combined Security Transition Command-Afghanistan 

Lieutenant General Thomas P. Bostick 

 U.S. Army Chief of Engineers and 

 Commanding General, U.S. Army Corps of Engineers 

This report discusses the results of the Office of the Special Inspector General for Afghanistan 

Reconstruction’s (SIGAR) audit of ITT Exelis Systems Corporation’s (Exelis) implementation of 

two U.S. Army Corps of Engineers (USACE) contracts for operation and maintenance at Afghan 

National Security Forces (ANSF) facilities throughout Afghanistan. We found that despite 

ongoing capacity development, the Afghan government continues to face challenges that will 

likely prevent it from fully sustaining ANSF facilities after the 2014 transition. Further, although 

Exelis generally invoiced and provided services in accordance with the terms of the contracts, 

its northern contract is projected to run out of funds in March 2014, 16 months short of the 

full period of performance, and Exelis has not fully implemented quality control efforts for its 

southern contract. This report recommends that USACE (1) implement standardized 

procedures for overseeing the two contracts, (2) direct Exelis to fully implement its quality 

control program in southern Afghanistan, and (3) complete its plan and procedures for 

removing partial facilities from the contracts and reclassifying these facilities in order to reduce 

O&M costs. 

When preparing the final report, we considered comments from USACE. These comments are 

reproduced in appendix VI. USACE concurred with the three recommendations. SIGAR 

conducted this performance audit under the authority of Public Law No. 110-181, as 

amended; the Inspector General Act of 1978; and the Inspector General Reform Act of 2008. 

John F. Sopko 

Special Inspector General 

 For Afghanistan Reconstruction 
TABLE OF CONTENTS 

SIGAR Audit 13-1/Contractor Performance and Oversight/O&M Contracts for ANSF Facilities Page i 

Background .................................................................................................................................................................. 2

Afghan Government Continues to Face Challenges Sustaining ANSF Facilities ...................................................... 5

Exelis Generally Invoiced and Provided Services within the Contracts’ Terms, but External Factors Affected 

Execution, and Funding for the Northern Contract May Be Insufficient ........................................................ 11

Quality of Contract Oversight Varied ......................................................................................................................... 17

Conclusions ................................................................................................................................................................ 19

Recommendations .................................................................................................................................................... 20

Agency Comments ..................................................................................................................................................... 21

Appendix I - Scope and Methodology ....................................................................................................................... 22

Appendix II - Cost Structure of O&M Contracts and Services Provided .................................................................. 25

Appendix III - Task Orders and Modifications to the Northern O&M Contract, W912ER-10-D-0002 ................... 26

Appendix IV - Task Orders and Modifications to the Southern O&M Contract, W912ER-10-D-0003 ................... 31

Appendix V - ANSF Site Details ................................................................................................................................. 35

Appendix VI - Comments from U.S. Army Corps of Engineers ................................................................................. 42

Appendix VII - Acknowledgments .............................................................................................................................. 45

TABLES 

Table 1 - Estimated value of O&M Contracts by Year ................................................................................................ 3

Table 2 - O&M Training Locations by Contract as of June 15, 2012 ...................................................................... 10

Table I - Examples of Services Provided under the O&M Contracts by Functional Area ....................................... 25

Table II - Modifications to Northern O&M Base Contract W912ER-10-D-0002 ..................................................... 26

Table III - Modifications to Northern O&M Base W912ER-10-D-0002, Task Order 0002 ..................................... 27

Table IV - Modifications to Northern O&M Contract W912ER-10-D-0002, Task Order 0003 ............................... 29

Table V - Modifications to Southern O&M Base Contract W912ER-10-D-0003 .................................................... 31

Table VI - Modifications to Southern O&M Contract W912ER-10-D-0003, Task Order 0002 .............................. 32

Table VII - Modifications to Southern O&M Contract W912ER-10-D-0003, Task Order 0003 ............................. 34

FIGURES 

Figure 1 - Details of O&M Contracts ........................................................................................................................... 4

Figure 2 - Eastern Style Toilet in Good Repair in Latrine at Police District 3, Kabul ............................................. 12
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page ii 

Figure 3 - Operational Sink in Latrine at Camp Hero, Kandahar ............................................................................ 12

Figure 4 - Hospital Emergency Room Clean and Well Maintained at Camp Hero, Kandahar ............................... 13

Figure 5 - Lights and Fans Operational in Barracks at Camp Shaheen in Mazar-e Sharif, Balkh ........................ 13

Figure 6 - Repaired Wiring in Electrical Panel in 8th Commando Camp Maintenance Building ............................ 14

Figure 7 - Disconnected Heating Units in 8th Commando Camp Maintenance Building ....................................... 14

Figure 8 - Corroded Steel Pipe at the Joint Regional Afghanistan Security Forces Compound Water Treatment 

System ............................................................................................................................................................... 15

Figure I - Locations of ANSF Sites Visited during Audit ............................................................................................ 35
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page iii 

ABBREVIATIONS AND ACRONYMS 

ANA Afghan National Army 

ANP Afghan National Police 

ANSF Afghan National Security Forces 

AQAR Afghan Quality Assurance Representative 

ENG Engineer Directorate 

CPMD Construction and Property Management Department 

COR Contracting Officer’s Representative 

Exelis ITT Exelis Systems Corporation 

GSU garrison support unit 

ITAG Infrastructure Training Advisory Group 

MOD Ministry of Defense 

MOI Ministry of Interior 

NTM-A North Atlantic Treaty Organization Training Mission-Afghanistan 

O&M operation and maintenance 

PCO Primary Contracting Officer 

POL petroleum, oil, and lubricants 

SIGAR Special Inspector General for Afghanistan Reconstruction 

TAM Middle East District 

TAN Afghanistan Engineer District-North 

TAS Afghanistan Engineer District-South 

USACE U.S. Army Corps of Engineers 
SIGAR Audit 13-1/Contractor Performance and Oversight/O&M Contracts for ANSF Facilities Page 1 

A key objective of coalition efforts in Afghanistan is to build the country’s capacity to provide for its own security 

by training and equipping the Afghan National Security Forces (ANSF), which consist of the Afghan National 

Army (ANA) and the Afghan National Police (ANP). Between fiscal years 2002 and 2012, the U.S. Congress 

appropriated $52.15 billion to equip, train, base, and sustain the ANSF. Approximately $11.7 billion of this 

amount has been appropriated for the construction of ANSF facilities. In our prior audits of U.S.-funded ANSF 

construction projects, we expressed concerns about the Afghan government’s ability to sustain these facilities 

in the absence of U.S. and coalition support, thus risking that U.S. investment will not be sustained after an 

expected significant decrease in international support after 2014. 

In February 2011, the North Atlantic Treaty Organization Training Mission-Afghanistan (NTM-A) developed a 

plan to transition operation and maintenance (O&M) of ANSF facilities to the Afghan government by the end of 

2014.1 In an effort to ensure that facilities are maintained until the ANSF is capable of doing so, NTM-A 

obligated $800 million to fund these services for Afghan army and police facilities across Afghanistan.2 In July 

2010, the U.S. Army Corps of Engineers (USACE) awarded two firm-fixed-price contracts to ITT Exelis Systems 

Corporation (Exelis) to provide O&M for facilities in northern and southern Afghanistan.3 The contract covering 

facilities in the northern provinces is valued at $450 million and the contract covering the southern provinces 

at $350 million. The services include the O&M of buildings, structures, and utility systems and pest control. 

The contracts also require Exelis to train ANSF workers on the trade skills required for O&M. 

This report assesses the extent to which (1) NTM-A and USACE are developing the capacity of the ANSF to 

sustain its facilities after full transition in 2014, (2) Exelis has implemented the O&M contracts within the 

contracts’ terms, and (3) USACE and Exelis have provided oversight of the contracts.4 

To accomplish our objectives, we reviewed and analyzed the two USACE O&M base contracts, task orders, and 

modifications, as well as all contractor invoices submitted through May 2012. In addition, we reviewed USACE 

acquisition strategies and contract planning documents and relevant clauses in the Federal Acquisition 

Regulation and USACE’s Engineer Regulation. We analyzed USACE quality assurance reports submitted by 

Contracting Officer’s Representatives (COR) and Afghan Quality Assurance Representatives (AQAR). We also 

examined Exelis documents, including quality control and training plans, site visit reports, preventative 

maintenance inspection schedules, and incident reports. We examined the NTM-A Engineer Directorate (ENG) 

Infrastructure Training Advisory Group (ITAG) Campaign Plan, facility assessments, and transition plans. We 

conducted site visits to 20 facilities at 11 ANA and ANP sites.5 In addition, we interviewed ENG, ITAG, USACE 

 

1 U.S. and coalition nations plan to end their combat role in Afghanistan by the end of 2014, which will involve the 

withdrawal of a significant number of military forces and resources. 

2 While NTM-A oversees ANSF O&M efforts, the Combined Security Transition Command-Afghanistan funds the two 

contracts via the Afghanistan Security Forces Fund. 

3 USACE awarded the O&M contracts to ITT Systems Corporation. In late 2011, the company changed its name to ITT Exelis 

Systems Corporation. USACE modified the contracts to reflect this name change. 

4 When we initiated this audit, the Department of Defense Office of Inspector General was conducting a related audit of the 

training portion of the O&M contracts to determine if training was effective in developing the ANSF’s infrastructure 

maintenance capabilities (see DODIG-2012-104, DoD Needs to Improve Vocational Training Efforts to Develop the Afghan 

National Security Forces Infrastructure Maintenance Capabilities, June 18, 1012). To avoid duplication, we limited our first 

two audit objectives to Exelis’ execution of the O&M services portion of the contract. 

5 The O&M contracts cover ANSF facilities rather than entire army and police sites or bases. Some sites consist of multiple 

facilities with each facility supporting a different mission. For example, the ANP’s Joint Regional Afghanistan Security 

Forces Compound consists of four facilities: (1) Border Police zone headquarters, (2) Uniform Police regional headquarters, 

(3) Afghanistan National Civil Order Police headquarters, and (4) Regional Logistics Center. Each of these facilities 

supports a different police mission. Thus, the number of sites covered under the contract is lower than the number of 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 2 

Transatlantic Division, Exelis, subcontractor, and ANA officials. We conducted our work in Kabul, Kandahar, 

Uruzgan, Herat, Balkh, Paktya, and Farah provinces in Afghanistan from July 2011 to October 2012 in 

accordance with generally accepted government auditing standards. A discussion of our scope and 

methodology is in appendix I. 

BACKGROUND 

As part of NTM-A’s efforts to develop a fully capable and self-sustaining ANA and ANP, ENG aims to develop the 

capacities of the Ministries of Defense (MOD) and Interior (MOI),6 from the ministerial to the field levels, to 

maintain ANSF facilities.7 The ITAG Campaign Plan, approved in early 2011, describes ENG and ITAG8 strategy 

for accomplishing this effort. According to the plan, ITAG’s mission is to provide training, mentorship, and 

synchronization of O&M efforts at ANSF sites in order to ensure ANSF-led facility sustainment. The main 

objectives of the plan are to increase ANSF O&M capabilities and to solve systemic problems of manning, 

equipping, training, and budgeting in order to transition facilities and their sustainment to the Afghan 

government by the end of 2014. 

Because the Afghan government lacked the capacity to provide O&M, the USACE Middle East District (TAM), 

under NTM-A direction, awarded in 2010 two firm-fixed-price indefinite delivery/indefinite quantity service 

contracts to Exelis to provide O&M for ANSF facilities across Afghanistan.9 On July 26, 2010, USACE-TAM 

awarded contract number W912ER-10-D-0002, worth $450 million, to cover ANA and ANP facilities in northern 

Afghanistan. 10 USACE-TAM awarded contract number W912ER-10-D-0003, valued at $350 million, on July 27, 

2010, to cover facilities in the southern part of the country.11 Exelis in turn uses subcontractors to execute the 

work.12 The two contracts each consist of 1 base year plus 4 option years and may cover more than 800 

facilities over the life of the contracts. The contracts’ fourth option year may be exercised if all ANSF facilities 

are not transferred to the Afghan government by 2014. USACE-TAM signed the notices to proceed for the 

 

facilities. Each facility further consists of a set of buildings and structures required to support the occupying entity’s 

mission. For example, an army Corps headquarters as one facility and mission consists of more than 150 buildings and 

structures, including barracks, latrines, dining facility, guard towers, power plant, administration buildings, and 

warehouses. 

6 MOD and MOI oversee the ANA and ANP, respectively. 

7 Prior to the NTM-A/Combined Security Transition Command-Afghanistan’s reorganization in fall 2011, ENG was known as 

the Combined Joint Engineering Directorate. 

8 NTM-A approved the creation of ITAG under the command of ENG in January 2010, although it did not become 

operational until December 2010. 

9 Although Exelis was awarded both contracts, its program offices in northern and southern Afghanistan implement their 

respective contracts independently, as required by the contracts, with oversight from Exelis’ Middle East Office in Qatar. 

10 Prior to July 2010, USACE provided O&M services at ANSF facilities under six separate contracts. USACE awarded the 

predecessor O&M contract for ANA facilities throughout Afghanistan to Contrack International Incorporated. Prior to the 

current O&M contracts, one Afghan firm, Afghan Armada, provided O&M at ANP facilities under five separate contracts with 

USACE. Due to poor contractor performance, USACE did not exercise any options on the ANP contracts and awarded a 

bridge contract to ensure continuation of O&M services. 

11 Approximately $27 million of the total contract value for each O&M contract is specifically for spare parts, materials, 

supplies, and specialty tools. 

12 USACE awarded the contract to Exelis because it submitted the lowest acceptable bid proposal. Exelis subcontracted 

with Contrack International Incorporated, the prime contractor on the predecessor ANA O&M contract, to provide services 

under both contracts. Exelis has utilized other subcontractors, such as ANHAM and local Afghan companies, but Contrack 

has been the primary subcontractor since the early phases of contract implementation. 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 3 

contracts on July 28 and 30, 2010, which initiated the phase-in period. The base year of each contract began 

on November 1, 2010. As of June 5, 2012, the total costs of the O&M contracts were approximately $222 

million and $104 million for the north and south, respectively, for a total of $326 million. The contracts 

covered 480 army and police facilities. 

O&M services provided under the contracts include building and structures maintenance; utility systems O&M; 

and heating, ventilation, and air conditioning systems O&M. The contracts also require Exelis to train ANSF 

workers on the required O&M trade skills, such as electrical, plumbing, and sewage treatment plant operation, 

through formal vocational and managerial training, on-the-job training, and job shadowing. Appendix II 

describes the cost structure of the contracts and lists examples of the services provided under the contracts. 

Table 1 shows the estimated value of each O&M contract by year; figure 1 provides information on the 

contracts, including the provinces covered under each contract. 

 

Table 1 - Estimated value of O&M Contracts by Year 

Contract Value (in millions) 

Contract Number Base Year 

(July 2010-

July 2011) 

Option #1 

(July 2011-

July 2012) 

Option #2 

(July 2012-

July 2013) 

Option #3 

(July 2013-

July 2014) 

Option #4 

(July 2014-

July 2015) 

Total

W912ER-10-0002 (North) $75 $75 $100 $100 $100 $450 

W912ER-10-0003 (South) $50 $75 $75 $75 $75 $350 

Source: USACE contract numbers W912ER-10-D-0002 and W912ER-10-D-0003. 

Note: The dates provided indicate the ordering period for each contract year. Due to the difference in award dates, the 

ordering periods for the northern O&M contract begin on June 27 and end on July 26 of the following year while the 

ordering periods for the southern contract begin on July 28 and end on July 27. 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 4 

Figure 1 - Details of O&M Contracts 

Source: USACE contract numbers W912ER-10-D-0002 and W912ER-10-D-0003, task orders, and modifications. 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 5 

USACE-TAM maintains Primary Contracting Officer (PCO) responsibilities for the two O&M contracts, and only 

the PCO can modify the base contracts and execute task orders. For example, the PCO issues notices to 

proceed and exercises option years by issuing task orders off the base contracts. USACE-TAM delegated 

Administrative Contracting Officer responsibilities for the northern and southern contracts to Afghanistan 

Engineer District-North (TAN) and Afghanistan Engineer District-South (TAS), respectively.13 The Administrative 

Contracting Officers monitor and approve work orders,14 and can execute modifications to task orders written 

on the base contracts. These modifications primarily add ANSF facilities to the O&M contracts once 

construction is completed or remove facilities from the contracts that are transferred to the Afghan 

government.15 Appendixes III and IV list the task orders and modifications for the northern and southern O&M 

contracts, respectively. 

AFGHAN GOVERNMENT CONTINUES TO FACE CHALLENGES SUSTAINING ANSF 

FACILITIES 

Difficulties recruiting a sufficient number and quality of personnel, as well as deficient MOD and MOI 

budgeting, procurement, and supply systems prevent the Afghan government from fully maintaining ANSF 

facilities. This hampers efforts to transition ANA and ANP facilities to the Afghan government. NTM-A and 

USACE are taking steps to address these challenges in an effort to enhance the government’s ability to sustain 

its facilities after the 2014 transition. 

Personnel Numbers 

MOD and MOI have struggled to fill O&M authorized positions. As of June 1, 2012, ENG reported that MOD 

had filled 1,055, about 41 percent, of the 2,567 total ANA O&M positions authorized. An additional 435 

personnel were in the hiring process, which would raise the percentage of filled positions to about 58 percent. 

Exelis and MOD have had problems identifying and retaining ANSF trainees due to fluctuations in daily 

attendance rates and attrition.16 Officials indicated that this is largely due to site commanders detailing 

trainees to other work assignments, which can partially be attributed to insufficient personnel numbers. These 

are ultimately the personnel who are responsible for providing O&M as part of the garrison support unit (GSU) 

facility engineer sections.17

In an effort to attract qualified employees, MOD raised compensation for civilian O&M personnel, and ENG has 

encouraged additional efforts to enhance recruitment and retention. For example, ENG is working to boost 

personnel numbers by recruiting Afghan contract personnel working on contracts to fill GSU positions at sites 

where contracts are ending. However, salary disparities still exist between civilian GSU positions and positions 

 

13 USACE’s Transatlantic Division oversees USACE-TAM, USACE-TAN, and USACE-TAS. The provinces covered by the O&M 

contracts correspond with the USACE-TAN and USACE-TAS areas of responsibility. 

14 In addition to performing regular preventive maintenance on facilities, Exelis and its subcontractor submit work orders 

for work that is corrective in nature, such as repairs, modifications, and replacements, as well as those related services not 

generally considered to be a recurring maintenance activity. The contracts authorize Exelis to self-approve emergency work 

orders that do not exceed $5,000. USACE must approve the initiation of work orders that exceed this threshold. 

15 Modifications also allocate additional funding to the task orders. 

16 Exelis officials indicated that attrition rates have been low overall but are still a concern. 

17 GSUs are responsible for providing installation and life support operation for their units, including O&M of facilities, 

installation security, and fuel distribution. 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 6 

with private firms, such as contractors. Despite these actions, MOD continues to face difficulties recruiting 

civilian personnel to fill O&M positions in the ANA’s GSUs. Without additional steps, MOD may not be able to 

fill all authorized positions in the expanded facility engineer sections and risks not being able to provide the 

necessary O&M on ANA facilities. 

With respect to the ANP, ENG’s reports indicated that MOI had only filled 321, or approximately 31 percent, of 

the 1,022 authorized O&M positions in the facility engineer section of ANP GSUs as of June 1, 2012, with only 

two personnel in the process of being hired. In addition to filling currently authorized positions, ENG 

recommended that MOI increase the number of positions, but the ministry did not approve an increase. ENG 

officials indicated that they do not expect the ministry to add positions even though it has acknowledged that 

ANP facility engineer sections need to grow to meet increased demand. As a result, MOI will likely have to 

contract for O&M services as police facilities are transferred to the Afghan government. 

Quality of Personnel 

In addition to filling authorized maintenance positions, the ANSF has had difficulties recruiting and retaining 

personnel with the level of competence needed to provide the full range of O&M services.18 ANSF and Afghans 

employed by Exelis and its subcontractor are largely limited to performing basic O&M at ANSF sites, and Exelis’ 

training programs largely focus on the skills required to provide these basic services. As a result, with the 

possible exception of sites near large hubs such as Kabul and provincial capitals, third-country national 

contractor and subcontractor employees largely provide O&M of critical facilities, such as water supply, waste 

water treatment, and power generation, while Afghan employees only provide such services under the direction 

of the third-country nationals. The complexity of these critical facilities requires skilled, experienced personnel 

who can operate and maintain them independently, which most Afghan personnel are currently unable to do. 

For example, Exelis officials told us that an individual must be able to read O&M and technical manuals and 

blueprints in order to operate power and waste water treatment plants. However, both ITAG and Exelis officials 

stated that the literacy rate for ANSF trainees is low and remains an ongoing challenge to developing a fully 

capable O&M workforce. 

NTM-A worked with MOD to draft a policy aimed at increasing the number of qualified personnel hired to fill 

maintenance positions. This policy would give top priority to Afghans employed by Exelis, its subcontractor, 

and local construction company workers. Although MOD has not officially approved the policy, it has 

implemented most of the identified processes.19 However, the ministry continues to face difficulties identifying 

and recruiting qualified personnel with the ability to learn how to operate and maintain complex facilities, as 

most are already employed by private firms. This is largely due to disparities between ANA pay for civilian 

positions and private sector pay provided by contractors and other entities. 

In lieu of qualified personnel, ENG was taking steps to implement interim measures that would ensure that 

critical facilities, such as power generation and waste water treatment plants, receive the necessary O&M until 

the ANSF is capable of providing these services with its own personnel. For example, the ITAG team at Camp 

Hero in Kandahar was working with the site’s facility engineer to develop a local ANA-funded contract that 

 

18 Prior reports have commented on the ANA’s lack of personnel with technical skills and difficulties recruiting such 

personnel. For example, in December 2011, the Department of Defense Office of Inspector General reported on the ANA’s 

inability to recruit and retain qualified generator operators and maintenance personnel (see DODIG-2012-028, Assessment 

of U.S. Government and Coalition Efforts to Develop the Logistics Sustainment Capability of the Afghan National Army, 

December 9, 1011). 

19 In addition to defining ANA hiring priorities, the MOD policy lists hiring requirements, such as background checks and 

service agreements, and qualifications for the three broad position levels. 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 7 

would provide O&M on these critical facilities after the site transitions to the ANA. At the ministry level, ENG 

was working with MOD and MOI to develop an Afghan-administered and funded national O&M contract that 

would focus on the operation, maintenance, and repair of the more complex facilities. However, it is unclear 

where the Afghan government will obtain the funds to contract for these services because the U.S. and 

coalition nations currently provide almost all of the ANSF’s funding. Without such a contract or qualified 

personnel capable of providing these services, the Afghan government may not have the ability to 

independently operate and maintain critical facilities at ANA and ANP sites over the long term. Lack of O&M on 

critical facilities can have a direct impact on maintenance of other facilities at sites and may contribute to their 

deterioration. 

Budgeting, Procurement, and Supply Systems 

With ENG support, MOD has taken steps to provide funding and supplies for facility engineers to perform O&M 

on the limited number of buildings and structures under their control; however, there were challenges causing 

the ANA GSU facility engineer sections to receive inadequate support. According to ENG, MOD addressed prior 

shortfalls in the ANA O&M budget, and sufficient funds are now available for O&M. However, MOD continued 

to face challenges executing this budget due to a slow procurement process that is unable to meet the 

demand for services and supplies in a timely manner. 

ENG officials noted that this issue affects all ANA logistics, not just O&M. ENG officials stated that they have 

brought the procurement issue to the attention of senior U.S. officials—including the Commanding General of 

U.S. Forces-Afghanistan and the International Security Assistance Force—which has led to more engagement 

between higher-level MOD and NTM-A leadership on the issue. To obtain supplies, MOD’s Construction and 

Property Management Department (CPMD),20 under ENG mentoring, has encouraged the use of cash advances 

to locally purchase parts and supplies, although there has been resistance within MOD about using such an 

approach. This step may help overcome previously reported difficulties ANA units face obtaining parts and 

supplies through MOD’s centralized supply request process. 

With respect to MOI, ENG officials reported that the ministry made its first allocation of funds specifically for 

O&M in March 2012. In addition, ENG initiated efforts to purchase facility maintenance tools and equipment 

that, if approved, would add a stock of equipment to MOI’s supply system and procure additional equipment 

that would be available to regional and provincial ANP headquarters facility engineers. 

NTM-A Has Multiple Efforts Underway to Develop the Afghan Government’s Capacity 

to Maintain Facilities and Begin Transitioning Facilities to the ANSF 

ENG was implementing several efforts to achieve the main objectives of the ITAG Campaign Plan, which are to 

increase ANSF O&M capabilities and to work systemic problems of manning, equipping, training, and budget in 

order to transition responsibility of facilities to the Afghan government. 

ITAG Training Teams 

As of November 2011, ITAG embedded training teams were assigned to 32 sites, primarily ANA sites, across 

Afghanistan. The teams’ responsibilities are to train and mentor ANSF facility engineers and synchronize O&M 

efforts at ANSF sites by serving as a liaison between the ANSF facility engineers, USACE, and Exelis. According 

 

20 CPMD is a component of MOD that is responsible for the conduct of routine facility maintenance and management of all 

ANA facilities. CPMD controls O&M personnel assignments, training, qualifications, budget, overall programming, and 

prioritization of national facilities maintenance and repairs. 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 8 

to ENG officials, ITAG numbers will decrease to just 63 personnel by the end of September 2012, due to the 

overall drawdown of U.S. military personnel. ENG officials indicated that this decrease will have a large impact 

on ITAG’s ability to accomplish its mission. For example, in preparation for the decrease, ENG developed a 

“grip and touch” approach to assigning teams to ANSF sites. Under this approach, key locations, such as the 

Kabul Military Training Center, Afghan Defense University, and Corps level ANA sites,21 will likely be designated 

as “grip” sites with a constant ITAG presence. Other locations, such as brigades and outlying kandaks,22 will 

be “touch” sites visited by mobile ITAG teams. To further ensure that training and mentorship efforts continue, 

NTM-A has sought additional resources from other troop-contributing coalition nations. 

O&M Capability Assessments 

A focus of the ITAG strategy is to remove buildings from the O&M contracts as soon as ANSF personnel have 

developed sufficient capacity to maintain them. To accomplish this, ITAG has completed O&M capability 

assessments of 27 sites, including 5 ANP sites. These assessments include evaluations of GSU leadership 

and management, people and organization, tools, funding and budget, and force protection. ITAG reevaluates 

sites on a monthly and quarterly basis, and updates the assessments as conditions change. 

Transition Plans and Facility Transitions 

Based on its site assessments, ITAG teams developed transition plans for 23 ANA sites and 1 ANP site. These 

plans call for sites to transition to the Afghan government in four phases with about 25 percent of the sites 

being transferred during each stage. Building and structures requiring limited maintenance will transition first, 

followed by more maintenance-intensive buildings in subsequent phases. Although the ITAG Campaign Plan

calls for 18-month transition timelines, the plan allows each ITAG team to adjust the timeline based on ANSF 

personnel’s ability to maintain the facilities at their assigned sites. 

As of August 1, 2012, building transitions have occurred at 23 ANA and 2 ANP sites.23 Although buildings have 

transitioned at these sites and no longer receive O&M under the contracts, contract funding has not changed. 

According to USACE and Exelis personnel, this is because the contracts call for entire facilities to transition to 

the Afghan government rather than individual buildings. USACE officials also stated that most of the buildings 

that have transitioned to the ANSF are those that are either easy to maintain or require minimal work, such as 

barracks and latrines, and therefore do not have high O&M costs. 

In February 2012, USACE started working with Exelis to develop a mechanism to reclassify facilities as 

buildings transition, thus reducing O&M costs incurred under the contracts. In August 2012, the PCO reported 

that USACE-TAM had taken the first step in this process by modifying both base contracts to identify the 

boundaries of the most critical facilities, such as waste water treatment and power generation plants, that will 

remain on the base contracts. The next step is to determine the reclassification of facilities where partial 

transitions have occurred. USACE-TAM expects to complete this by the end of November 2012, with 

corresponding modifications to the relevant task orders executed no later than January 15, 2013. Until this 

mechanism is fully implemented, USACE will continue to pay O&M costs for buildings that are no longer 

covered under the contracts. Further, although the buildings that have transitioned have low O&M costs, the 

 

21 Combat forces form the basic operational arm of the ANA and are divided into 6 Corps and 1 division, each responsible 

for a specific part of Afghanistan. Each Corps or division is made up of 1 to 4 brigades. 

22 A kandak consists of approximately 800 soldiers and is the Afghan equivalent to a U.S. Army battalion. Each brigade 

typically consists of 6 kandaks. 

23 As of June 5, 2012, 480 ANSF facilities were covered under the contracts. 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 9 

proportion of contract costs expended on these and other buildings that have not been formally removed from 

the contracts will increase as more buildings transition to the Afghan government. 

Identifying Facilities for Complete Removal from the Contracts 

ENG is also working to identify facilities, largely ANP, to remove from the O&M contracts. On May 1, 2012, 44 

polices facilities were removed from the northern contract, and the directorate is identifying additional facilities 

for removal. ENG wants to remove facilities at which it has been difficult for Exelis to provide O&M and for both 

USACE and Exelis to provide oversight. ENG also wants to remove ANP facilities in an effort to force MOI to 

develop its capacity to maintain these facilities. ENG officials told us that MOI continues to lag behind MOD in 

overall O&M capacity, and they are taking steps to encourage the ministry to take responsibility for ANP sites. 

However, if the MOI is unable to develop the necessary O&M capacity, the 44 police facilities that have been 

removed from the contracts, and future facilities that may be removed, will likely fall into disrepair. 

Capacity Building Efforts at MOD and MOI 

In addition to working with ANA facility engineers and O&M personnel at the local level, ENG is working with the 

MOD and MOI to develop their capacities to manage O&M at the various ANA and ANP facilities. ENG was 

focusing its efforts on personnel, compensation, training, supplies, and budget. For example, ENG has worked 

with MOD to increase the size of the facility engineer section of each ANA GSU from 24 to 65 or 80 personnel, 

depending on the size of the garrison the unit is serving. These units consist of administrative, operation, 

engineering, maintenance, and services teams, as well as a remote kandak services team to provide support 

to facilities that are not co-located with the garrison. About half of the personnel in the facility engineer section 

would be assigned to the maintenance and remote kandak services teams. MOD is currently taking steps to 

recruit personnel to fill the units. ENG has also worked with MOI to facilitate increases in the size of the ANP’s 

GSUs’ facility engineer sections from the authorized 18 or 23 positions. However, MOI has not approved the 

recommended increase even though ministry officials have acknowledged that additional positions are needed 

to meet the increased demand. In terms of salaries, MOD, with ENG support, has reclassified civilian O&M 

positions, thus raising personnel salaries. 

Exelis Was Providing Training Focused Largely on Basic O&M Skills to Over 600 

ANSF Personnel as of June 2012 

Exelis initiated two O&M programs to train ANSF personnel at selected sites in northern and southern 

Afghanistan. Although Exelis’ O&M training programs largely focused on basic O&M trade skills, such as 

carpentry, electrical, and plumbing, the contractor has implemented training sessions on power generation and 

sewage treatment plant O&M—two more technical skills—in accordance with the contracts. The contracts also 

require Exelis to train Afghan personnel to use the Computerized Maintenance Management System.24 ENG 

plans to transfer this system to the Afghan government. Among other things, the Computerized Maintenance 

Management System will provide ANSF facility engineers with a method for maintaining O&M records and 

justifying expenditures. 

 

24 The Computerized Maintenance Management System is a web-based application that allows USACE to monitor Exelis’ 

O&M workload and performance and Exelis to input, submit, and manage work requests. The system can also track ANSF 

facility assets. AMEC, formerly MACTEC, developed and currently maintains the Computerized Maintenance Management 

System under an Air Force Center for Engineering and the Environment contract funded by NTM-A/Combined Security 

Transition Command-Afghanistan. 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 10 

As of June 15, 2012, Exelis was providing training at 21 ANSF locations—13 ANA and 2 ANP locations in the 

north25 and 6 ANA locations in the south (see table 2).26 Sixty-six students had completed training and 602 

were enrolled in the training programs as of June 15, 2012.27 Exelis had invoiced for approximately $9.2 

million in training costs as of May 27, 2012: $4.7 million on the northern contract and $4.5 million on the 

southern contract. 

Table 2 - O&M Training Locations by Contract as of June 15, 2012 

Northern Training Sites Southern Training Sites 

Location Type Location Type 

Camp Commando, Kabul ANA Camp Hero, Kandahar ANA 

South Kabul International Airport, Kabul ANA Kandahar Air Wing, Kandahar ANA 

Kabul Logistics Acquisition Center, Kabul ANA Camp Shorabak, Helmand ANA 

Central Workshop, Kabul ANA Camp Eagle, Zabul ANA 

North Kabul International Airport, Kabul ANA Qala-e Naw, Badghis ANA 

Pol-e-Charki Garrison, Kabul ANA Camp Zafar, Herat ANA 

National Military Hospital, Kabul ANA 

MOI, Kabul* ANP 

303rd Regional Headquarters, Balkh ANP 

Camp Shaheen, Balkh ANA 

Camp Pamir, Kunduz ANA 

Gamberi Garrison, Nangarhar ANA 

Jalalabad Garrison, Nangarhar ANA 

Camp Thunder, Paktya ANA 

 

25 O&M training in the north included trainees from 23 different ANSF sites. Exelis planned to begin training at the Afghan 

National Security University on August 1, 2012. 

26 Exelis officials indicated that O&M training at Shindand ANA Air Base in Herat province began in early March 2012. 

However, due to hiring issues, training was suspended less than a week later, and the enrolled students were released 

from training. As of June 2012, MOD and local ANA leadership had not resolved the problem. As of early July 2012, Exelis 

had not initiated training at police sites in southern Afghanistan, but officials told us they were in the process of developing 

training programs for ANP O&M personnel. According to a senior ITAG official in the south, Exelis planned to start training 

at the Joint Regional Afghanistan National Security Forces Center in Kandahar province in early 2012, but ITAG requested 

that the contractor delay this training due to a lack of trainees. 

27 All 66 graduates completed training under the northern contract. With the initiation of training at the Afghanistan 

National Security University in August 2012, Exelis projected that at least 29 additional personnel would be enrolled in 

training. 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 11 

Table 2 - O&M Training Locations by Contract as of June 15, 2012 

Northern Training Sites Southern Training Sites 

Location Type Location Type 

Camp Parsa, Khost ANA 

Source: Exelis Systems Corporation. 

* Training at MOI concluded on July 1, 2012, with the transition of the site to the Afghan government. 

In addition to training conducted at ANSF sites, Exelis-North, in coordination with ENG and USACE, also 

provided two phases of apprentice-level O&M training at the Facility Engineer Vocational and Technical Training 

School located at CPMD in Kabul.28 Training included classroom and practical exercises in such O&M crafts as 

electrical, plumbing, carpentry, and masonry. Prior to and during CPMD training, ENG personnel provide 

students with literacy and basic math skills training to facilitate learning in their O&M courses. Of the 240 total 

training slots available for the two phases, approximately 150 trainees completed the courses for a graduation 

rate of about 63 percent.29 After receiving training at CPMD, trainees return to their assigned sites. 

EXELIS GENERALLY INVOICED AND PROVIDED SERVICES WITHIN THE 

CONTRACTS’ TERMS, BUT EXTERNAL FACTORS AFFECTED EXECUTION, AND 

FUNDING FOR THE NORTHERN CONTRACT MAY BE INSUFFICIENT 

Exelis largely implemented the O&M contracts in accordance with contract costs and required services. From 

December 2010 through May 2012, Exelis submitted invoices for about $150.8 million and $85 million on the 

northern and southern contracts, respectively, for a total of $235.8 million to USACE-TAM for payment.30 

These invoices covered costs incurred during the mobilization phase, base year, and about 10 months of the 

first option year. After reviewing all invoice packages maintained by USACE-TAM from the notice to proceed 

dates to May 27, 2012,31 we determined that the $235.8 million in total costs agreed with the line item pricing 

in the contracts. 

 

28 Exelis-North provided the first phase of this training from January to July 2011 and the second phase under the northern 

O&M contract from October 2011 to March 2012. Exelis-North initiated CPMD phase III on June 6, 2012. This phase will 

conclude in October 2012. As of July 12, 2012, 58 trainees were enrolled in the course. Exelis officials expect CPMD 

phase IV to begin in January 2013. Training in these two phases will include literacy and numeracy, safety, generator 

operation and maintenance, and four basic trades—carpentry, electrical, plumbing, and heating, ventilation, and air 

conditioning. The contractor intends to provide phases III and IV at no cost to the U.S. government after making a $1 

million commitment towards ANSF O&M capacity development. 

29 CPMD phases I and II each had 120 training slots available. Seventy trainees completed phase I while 80 trainees 

completed phase II. 

30 The total contract capacity for the base year and option year one of the northern and southern O&M contracts was $150 

million and $125 million, respectively. 

31 Exelis submitted the first invoices for the contracts on December 8, 2010. 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 12 

Exelis Generally Performed O&M in Accordance with the Contracts’ Terms, but Had 

Difficulty Mobilizing Initially 

Based on our site visits, reviews of USACE and NTM-A documents, and discussions with agency and contractor 

officials, we determined that Exelis was generally performing O&M in accordance with the contracts’ 

requirements, although some issues existed. We conducted site visits to 20 facilities at 11 ANSF sites covered 

under the O&M contracts (see appendix V for more information on these facilities). Based on our engineering 

assessments, we concluded that Exelis was meeting its contractual requirements at these sites. For example, 

we observed sinks and toilets in good repair at Police District 3 in Kabul and the ANA’s Camp Hero in Kandahar 

(see figures 2 and 3, respectively). 

Figure 2 - Eastern Style Toilet in Good Repair 

in Latrine at Police District 3, Kabul 

Figure 3 - Operational Sink in Latrine at Camp 

Hero, Kandahar 

Source: SIGAR, January 16, 2012. Source: SIGAR, December 21, 2011. 

In addition, we noted that the emergency room in the hospital at Camp Hero was clean and well maintained 

(see figure 4). Further, we saw operational light and ceiling fans at a barracks on the ANA’s Camp Shaheen 

located in Mazar-e Sharif, Balkh province (see figure 5). 

 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 13 

Figure 4 - Hospital Emergency Room Clean and 

Well Maintained at Camp Hero, Kandahar 

Figure 5 - Lights and Fans Operational in Barracks 

at Camp Shaheen in Mazar-e Sharif, Balkh 

Source: SIGAR, December 21, 2011. Source: SIGAR, January 3, 2012. 

Although Exelis appeared to be performing within the terms of the contracts, USACE officials told us that the 

phase-in period of the contracts had to be extended because Exelis had difficulty mobilizing.32 Agency officials 

stated that Exelis did not have the required skills to successfully implement the contracts, and they supported 

the contractor’s decision to subcontract with Contrack International Incorporated, the prime contractor on the 

previous ANA O&M contracts, to carry out the entire contract. 

In addition, USACE quality assurance reports covering the period from January to October 2011 documented 

some incidents of poor performance at several ANSF facilities. For example, a COR reported in April 2011 that 

the contractor was slow to staff and start maintaining sites in Delaram and Terin Kot. Another report 

submitted by an AQAR in June 2011 commented that the contractor had replaced door locks with poor quality 

locks. Despite these concerns, both ENG and USACE officials reported being satisfied with Exelis and its 

subcontractor’s overall performance on the contracts thus far. 

External Factors Have Affected O&M Contract Implementation 

Although we determined that Exelis was generally providing O&M services within the terms of the two 

contracts, we noted several external factors that have affected implementation of the contracts and may result 

in increased contract costs. 

Threats and Harassment of O&M Personnel 

ANSF personnel have harassed Exelis and its subcontractor’s personnel, many of whom are Afghans, which 

has affected O&M services at sites. From December 2010 to January 2012, Exelis submitted 61 serious 

 

32 The phase-in period is the time allowed for the contractor to assume full responsibility for all areas of operation in 

accordance with the terms and conditions of the contracts. This includes establishing project management offices; 

recruiting, hiring, and training necessary personnel; and attending post-contract award meetings as required. 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 14 

incident reports to USACE documenting instances of ANA and ANP personnel threatening, detaining, or 

physically assaulting its O&M personnel; denying them access to facilities; or a combination of these actions. 

For example, a report from May 2011 documented an incident during which ANA soldiers at a facility in the 

north beat a waste water truck driver. In another incident reported in August 2011, the armed Afghan police at 

a site in the south ordered subcontractor personnel to restart the site’s generators, which they had largely shut 

down to conserve fuel and prevent damage to the equipment. In 25 instances, these incidents had a negative 

impact on O&M activities at those facilities. 

ITAG, USACE, and Exelis have worked with local ANSF commanders to resolve these issues before elevating 

them to higher levels. Officials stated that this has generally been sufficient to ensure the continuation of O&M 

work. For example, ITAG, USACE, contractor, and police commanders met to address the August 2011 

incident. The ITAG representative indicated that instances of ANP intimidation at the site have occurred less 

frequently since that meeting. 

Poor Construction Quality and Flaws 

We observed poor construction quality and flaws at some of the facilities we visited that could make O&M 

more complicated and costly. 

 For example, at the ANA 8th Commando Camp in Tarin Kot, Uruzgan province, we observed that the 

original wires in the electric panel in the maintenance building had overloaded, causing the wires to 

melt. As a result, O&M personnel disconnected half of the building’s heaters to prevent further 

problems, such as possible electrocution and fires, and repaired the wires. However, the repairs were 

likely a temporary solution and may not prevent future overloading (see figures 6 and 7). 

 In addition, at the ANP’s Joint Regional Afghanistan Security Forces Compound, we observed wear on 

Figure 6 - Repaired Wiring in 

Electrical Panel in 8th Commando 

Camp Maintenance Building 

Figure 7 - Disconnected Heating Units in 8th Commando 

Camp Maintenance Building 

Source: SIGAR, December 11, 2011. 

Note – O&M personnel repaired melted 

wiring by splicing in new wiring, which they 

then covered with black electrical tape. 

 Source: SIGAR, December 11, 2011. 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 15 

original components of the water treatment 

system that suggest that the system will fail if 

not repaired. Specifically, we noted that the 

construction contractor built the chlorine 

addition system, which pumps liquid chlorine 

into the water system, with galvanized steel 

pipe. This material is not compatible with 

chlorine. The pipe is already showing signs of 

corroding from the inside-out (see figure 8). If 

not replaced with pipe of a chlorine-compatible 

material, the pipe may fail, resulting in the 

release of hazardous liquid chlorine into the 

room. In December 2011, an ITAG official told 

us that ENG was coordinating with NTM-A to 

award a $24 million contract to repair the 

sewage system, water tank, and other identified 

construction flaws at the site.33

 Further, we noted that the construction 

contractors had installed plain pane glass 

windows in guard towers at the Joint Regional 

Afghanistan Security Forces Compound. The 

glass will shatter if hit, potentially injuring police 

in the towers. 

In some cases, construction repairs are covered under the construction contract warranty, thus requiring the 

initial contractor to complete the repairs. ENG and USACE officials told us that USACE considers whether to 

make warranty repairs on a case-by-case basis. The agency attempts to bring the original contractor back on 

site to complete repairs; however, this is not always feasible primarily due to contractor demobilization or costs 

involved. In such instances, USACE determines whether it is more cost effective for Exelis to complete the 

warranty repairs under the O&M contracts. Each contract allocates $2.5 million of the total contract cost to a 

contract line item for work orders that do not fall under normal operation and preventive maintenance. At the 

PCO’s discretion, Exelis uses these funds to complete identified warranty repairs for an agreed cost. 

As of May 27, 2012, Exelis had submitted invoices for about $786,000 in work orders not related to normal 

operation and preventive maintenance. 34 According to the PCO, the cost of warranty repairs has been low 

relative to the total funding amount allocated. However, these costs could increase with further warranty 

repairs on facilities currently covered under the contracts or on facilities added to the contracts later. 

 

33 The contract would also require repairs to the power plant and the construction of a barracks that one of the initial 

contractors did not build. We did not determine the extent to which the repairs under the proposed $24 million contract 

were covered under the construction warranty. However, in 2010 USACE identified electrical and generator deficiencies at 

the site, and an ITAG official noted ongoing problems with the generators during our site visit in December 2011. 

34 The invoices did not identify what portion of work order costs were for warranty repairs versus non-warranty repairs. As a 

result, we could not independently verify how much has been spent specifically on warranty-related repairs. 

Figure 8 - Corroded Steel Pipe at the Joint 

Regional Afghanistan Security Forces 

Compound Water Treatment System 

Source: SIGAR, December 12, 2011. 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 16 

Difficulties Obtaining Required Parts and Equipment 

Exelis officials noted difficulties obtaining parts and equipment needed to provide O&M services in a timely 

manner, as many of these items are not locally available. For example, officials stated that most generators 

installed at ANSF facilities were built by foreign companies. Exelis must order replacement parts from abroad 

because they are not available in Afghanistan. Due to fluctuations in transit times, Exelis has attempted to 

order parts for some routine repairs in advance and to stockpile other parts. However, this continues to be a 

challenge. USACE quality assurance reports also noted cases where Exelis and its subcontractor experienced 

delays in obtaining necessary parts at some sites, which affected O&M at those locations. 

Irregular Fuel Deliveries 

Irregular fuel deliveries have caused disruptions in power at some sites, thus affecting Exelis’ ability to provide 

O&M. Exelis and subcontractor personnel told us that O&M personnel do not run generators constantly at 

some sites, due to inconsistent fuel deliveries and shortages. For example, Exelis officials told us that 

contractor personnel were forced to shut down the power plant at the Darulaman ANA base because fuel 

supplies dropped below a critical level. In addition, an ITAG official noted that lack of consistent fuel deliveries 

to the Joint Regional Afghanistan Security Forces Compound has been a problem. At one point, O&M 

personnel shut down generators to conserve fuel, which resulted in a confrontation with Afghan police at the 

site. Lack of power impacts O&M and other functions at these locations. According to the contracts, Exelis is 

not responsible for providing fuel to run generators and other equipment. Rather, MOD and MOI order fuel 

under a U.S.-funded national contract that provides fuel to ANSF facilities across the country. 35

NTM-A Projects That the Northern Contract Will Exhaust Its Funding Before 2015 

ENG analyses indicated that the northern O&M contract will run out of funding in 2014, prior to the expected 

contract completion date in 2015. We primarily attribute this funding shortage to ENG and USACE’s lack of 

complete information on the number of ANSF facilities projected to be covered under the contract and the slow 

rate of facility transition to the Afghan government. Although Exelis is providing O&M services within current 

cost levels, ENG anticipated that USACE-TAM would exercise options 3 and 4 sooner than indicated in the base 

contracts. As a result, ENG projected that funding for the northern O&M contract will largely be exhausted on 

March 26, 2014, with only about $4.6 million remaining to fund the contract.36 This would be 16 months prior 

to the projected contract completion date of July 26, 2015, indicated in the base contract. In contrast, ENG 

 

35 The MOD and MOI national fuel contract is a U.S. government-funded blanket purchase agreement valued at $20 million 

funded with a period of performance from January 22, 2010, to January 21, 2015. Under the agreement, the contractor is 

to provide sufficient fuel for the ANA and ANP to maintain daily training operation for use in generator power, cooking, 

heating, vehicle, equipment refueling, and other items for logistics operation. The ministries use the agreement, which is 

funded by the Combined Security Transition Command-Afghanistan, to obtain fuel for specified locations based on the 

ANSF’s operational needs. We are currently conducting an audit to assess U.S. government efforts to develop the ANA’s 

capability to acquire, manage, store, and distribute petroleum, oil, and lubricants (POL), and train the personnel needed to 

manage and oversee the distribution of POL. For the purposes of the audit, POL includes diesel fuel, gasoline, aviation fuel, 

and other fuel products such as firewood, coal, and propane. We issued an interim report on September 10, 2012 (see 

SIGAR-Audit 12-14, Interim Report on Afghan National Army Petroleum, Oil, and Lubricants). The report indicated that the 

Combined Security Transition Command-Afghanistan does not have a valid method for estimating fuel needs on which to 

base the funding requests or complete records on ANA fuel purchased, delivered, and consumed.

36 ENG projects that it will cost USACE approximately $11 million each month to fund the northern contract starting July 27, 

2013. Thus, the remaining $4.6 million in funding left after March 26, 2014, would not be enough to cover an additional 

month of contract services. 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 17 

has projected that funding for the southern contract will be sufficient through contract completion in July 2015, 

with approximately $55 million in contract capacity remaining. 

Based on our review of USACE acquisition planning documents and meetings with ENG and USACE, the 

projected funding shortfall on the northern O&M contract largely resulted from a lack of complete planning 

information on the number of facilities that would be covered under the O&M contracts and the slow facility 

transition rate. USACE’s acquisition strategies acknowledge that forecasts of when facilities will require O&M 

support have not been available historically, and changing requirements make it difficult to plan for facility 

additions and deletions to the contracts. In addition, ENG and USACE officials stated that the high rate of 

ANSF facility additions to the contract, in conjunction with the slow rate of facilities being transitioned to the 

Afghan government, have contributed to the expected funding shortfall. 

In an effort to ensure that sufficient funding is available through the transition at the end of 2014, the PCO 

informed us that NTM-A and USACE began the acquisition process to re-compete the northern contract in April 

2012.37 USACE-TAM expects to award the contract in mid-September 2013, with full contractor performance 

beginning on or about January 1, 2014. While the performance work statement was still being developed, ENG 

and USACE officials had previously indicated that such a contract may only cover critical facilities, such as 

power plants, waste water treatment plants, and hospitals. In addition, ENG is pursuing an aggressive 

schedule to transition ANSF facilities to the Afghan government. The directorate also planned to conduct a 

lessons-learned review in August 2012 to discuss a process for transitioning facilities to the Afghan 

government. However, the Afghan government’s continued lack of sufficient capacity to provide O&M in lieu of 

U.S. government support may impede these efforts. 

Both the ITAG Campaign Plan and the O&M contracts call for funding O&M at ANSF facilities through transition 

to the Afghan government at the end of 2014. Without sufficient funding for facilities covered under the 

northern O&M contract, there is a risk that these facilities will not receive the required O&M services, 

particularly those in locations where the ANSF may not have developed the capacity to maintain these 

facilities. Lack of proper maintenance could result in the deterioration of the facilities and a waste of U.S. 

funds spent on construction and O&M. 

QUALITY OF CONTRACT OVERSIGHT VARIED 

Although USACE has developed detailed and standardized policies for overseeing construction contracts, the 

agency did not have similar policies specific to service contracts, such as the O&M contracts. USACE officials 

told us they follow requirements in the Federal Acquisition Regulation to oversee the O&M contracts; however, 

the quality assurance requirements in the regulation are broad. In addition, officials stated that the contracts 

include similar quality assurance surveillance plans that describe the procedures for overseeing the contracts. 

Instead of adhering to these plans, the PCO, USACE-TAN, and USACE-TAS implemented ad hoc oversight and 

reporting procedures for overseeing the O&M contracts. For instance, the PCO instituted a requirement for the 

CORs to submit monthly reports describing the status of contract implementation, contractor performance, and 

any concerns regarding contract implementation. In addition, USACE-TAN and USACE-TAS required CORs to 

conduct regular visits to their assigned sites as security permits. 

However, we found that the level of oversight and quality of reporting varied by COR. Several CORs told us that 

they are able to conduct site visits on a regular basis to at least some of their assigned sites, while others 

 

37 The Combined Security Transition Command-Afghanistan was also involved in the re-compete process. 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 18 

stated that they rarely visited sites. USACE officials identified security concerns and limited security assets as 

primary reasons for not being able to conduct visits. For example, USACE-TAN and USACE-TAS largely restricted 

COR security movements in the fall of 2011 due to security incidents. USACE officials also stated that the 

drawdown of military personnel will have an additional impact on their ability to conduct visits. 

Further, our analysis of COR reports submitted from January to September 2011 indicated that although the 

reports were generally complete, many only provided the minimum information required and lacked supporting 

documentation to justify contractor performance ratings. This was true for reports providing satisfactory 

performance ratings and also those noting unsatisfactory performance. Although the PCO communicates 

informally with the CORs, she told us that she primarily relies on COR reports to gain field-level insight into 

contractor performance and identify instances of poor performance for the contractor to address. In addition, 

because USACE-TAM does not require Exelis to submit supporting documentation for costs invoiced for O&M 

training, vehicles, and warehousing, the reports serve as the main source of information for the PCO and CORs 

to determine whether the contractor has provided these goods and services within contract terms. 

In addition to CORs, USACE-TAN and USACE-TAS rely on AQARs to conduct quality assurance visits.38 USACE 

requires AQARs to produce reports on each site that they visit. CORs rely on these reports to develop their 

required monthly reports for the PCO. We conducted an analysis of a random sample of AQAR reports 

submitted from April to October 2011.39 Although we found that AQARs had conducted numerous site visits 

during this 7-month period, the quality of the reports in our sample varied by AQAR. For example, many reports 

were incomplete, and about half of the reports did not include photographs to document physical evidence of 

the quality of O&M services provided by the contractor. Further, the contents of the reports varied both across 

and within the two USACE districts. As a result, AQARs were not consistently collecting information and 

reporting on the same performance indicators. 

The Federal Acquisition Regulation requires contracting entities to conduct contract quality assurance as 

necessary to determine that services conform to contract requirements.40 Further, government officials must 

document quality assurance inspections in accordance with agency procedures.41 However, this regulation 

does not detail how agencies are to conduct quality assurance. In addition, the Government Accountability 

Office’s Framework for Assessing the Acquisition Function at Federal Agencies defines agency policies and 

processes as a cornerstone to an efficient, effective, and accountable acquisition process.42 Such policies and 

procedures are necessary to monitor and provide oversight to achieve desired contract outcomes. By not 

implementing standardized procedures for overseeing Exelis’ performance on the O&M contracts, USACE may 

not have reasonable assurance that the contractor is providing services in accordance with contract 

requirements. 

 

38 We previously reported on UASCE’s reliance on AQARs to conduct quality assurance visits to construction sites. UASCE 

employs local Afghans as AQARs to expand its quality assurance abilities. AQARs conduct daily site visits to specified sites, 

including sites CORs may be unable to reach. 

39 The size of our sample was not large enough for us to make projections to the entire population of AQAR reports 

submitted from April to October 2010. As a result, we only use the analysis to demonstrate the extent to which USACE 

oversight varied both across and within the northern and southern contracts. 

40 FAR 46.401(a). 

41 FAR 46.401(f). 

42 GAO-05-218G, Framework for Assessing the Acquisition Function at Federal Agencies, September 2005. 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 19 

Exelis Has Not Fully Implemented Quality Control Efforts in the South 

In accordance with the two O&M contracts, Exelis developed quality management plans that describe the 

contractor’s policies and procedures for monitoring the quality control of work performed at ANSF facilities 

covered under the contracts. However, we found that Exelis did not fully implement its quality control effort in 

the south. 

As part of its quality management program, Exelis officials in the north created a week-long quality control 

training program to prepare Afghan staff to conduct quality control visits.43 This training consists of conducting 

site assessments, mapping sites, and developing reports. Quality control inspectors also undergo an English 

comprehension test. During the base year and first half of option year 1, Exelis quality control inspectors’ 

efforts were largely limited to site visits to facilities in and around Kabul, although sites in Kabul accounted for 

only 20 percent of facilities covered under the northern contract at the end of 2011. From March to December 

2011, the inspectors conducted 78 visits to sites, all of which were in the vicinity of the capital. However, 

since September 2011, Exelis has expanded its quality control efforts outside of Kabul. Exelis officials 

reported having 33 quality control personnel, including 28 Afghan inspectors, assigned to facilities throughout 

the provinces covered under the northern contract as of June 2012. An additional 80 safety personnel 

complement oversight efforts by conducting joint site visits with quality control inspectors. 

In the south, Exelis’ quality control efforts were limited. In September 2011, Exelis officials in the south told us 

that the contractor’s quality control office consisted of only one U.S. supervisor and no quality control 

inspectors. During our site visits to facilities in the south in December 2011, USACE, ITAG, and subcontractor 

personnel told us that Exelis personnel had conducted few, if any, quality control visits to their sites. Exelis 

officials told us that they were still in the process of implementing their quality control program, expanding 

efforts beyond Kandahar, and recruiting Afghan quality control inspectors. By December, Exelis had hired five 

Afghan inspectors. As of June 15, 2012, the contractor had hired a lead Afghan quality control supervisor and 

three inspectors, and expanded to locations in Herat and Helmand provinces. Officials also indicated that the 

primary subcontractor, Contrack International Incorporated, had established a quality control department. 

The O&M contracts state that Exelis is responsible for the quality of products and services provided under the 

terms of the contracts, including those provided by subcontractors. Specifically, the contracts require Exelis to 

develop and implement a quality control inspection program. Further, Exelis’ quality management plan also 

implies that quality control personnel are to be located at hub locations in Zabul and Farah provinces. Thus, 

although Exelis has implemented such a program under the northern contract, the quality control program for 

the southern contracts has not been fully implemented. Without proper Exelis oversight, USACE and the 

contractor may not be able to determine whether the O&M services are meeting the terms of the contract. 

CONCLUSIONS 

Despite ongoing capacity development, the Afghan government continues to face challenges that will likely 

prohibit it from being capable of fully sustaining ANSF facilities after the transition in 2014 and the expected 

significant decrease in U.S. and coalition support. MOD has taken some steps to develop the necessary 

capacity; however, MOI has not recruited the necessary personnel and implemented the systems required to 

develop a self-sustaining police force. Instead, the ministry continues to rely on U.S. and coalition funding and 

 

43 Exelis-North officials told us that they are also training Afghan quality control inspectors employed under the southern 

O&M contract. 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 20 

support, decreasing the likelihood that the ministry will be able to sustain ANP facilities in the long run. As a 

result, U.S. funds invested in the construction and maintenance of ANSF facilities, particularly police facilities, 

are at risk of being wasted. Further, although there are ongoing efforts to establish a national O&M contract to 

cover both army and police facilities, these contracts will likely be at an additional cost to U.S. and other 

coalition nations, which currently provide the bulk of the ANSF’s funding. 

NTM-A ENG and USACE have taken some steps to increase the Afghan government’s capacity to sustain ANSF 

facilities, and these efforts have made it possible to start transitioning partial facilities to the Afghan 

government. However, USACE continues to pay the full O&M costs for these because the agency has not yet 

implemented a process for reclassifying facilities as buildings transition. Without such a process, USACE will 

continue to expend funds on buildings that are no longer covered under the contract, and these costs will likely 

increase as more buildings are removed from the contracts without a corresponding decrease in contract 

costs. 

With respect to USACE’s $800 million contracts to provide O&M for ANSF facilities until the Afghan government 

develops the capacity to sustain these facilities, Exelis invoiced and generally appeared to provide O&M in 

accordance with the terms of the contracts. However, USACE still may not have reasonable assurance that 

Exelis is providing goods and services within the terms of the O&M contracts due to variations in contract 

oversight. These variations resulted from USACE not implementing standardized procedures for overseeing 

service contracts and Exelis’ incomplete implementation of quality control efforts for the southern contract. 

Because the O&M contracts are projected to be active through at least 2014 and USACE expects to award a 

new contract for facilities in northern Afghanistan, it is important that the agency require its personnel to 

implement quality assurance procedures consistently across and within the two contracts, and require that its 

contractor fully implement quality control efforts. 

RECOMMENDATIONS 

To ensure that U.S. government funds are not being expended on buildings that have transitioned off the O&M 

contracts and to the Afghan government, we recommend that the Commander of the U.S. Army Corps of 

Engineers Middle East District direct the Primary Contracting Officer, in consultation with Exelis as appropriate, 

to 

1. complete and implement plans and procedures currently under development for removing partial 

facilities from the contracts and reclassifying these facilities, including steps for coordinating these 

transitions with NTM-A ENG, and, if necessary, modify the contracts to formalize this reclassification 

process. 

To enhance oversight of the O&M contracts, we recommend that the Commander of the U.S. Army Corps of 

Engineers Middle East District direct the Primary Contracting Officer to 

2. implement standardized procedures for overseeing the two contracts, which include, but are not 

limited to, provisions for Contracting Officer’s Representatives and Afghan Quality Assurance 

Representatives to conduct regular site visits, as security permits, and report on contractor 

performance. 

To ensure that Exelis is providing goods and services in accordance with the terms of the O&M contracts, we 

recommend that the Commander of the U.S. Army Corps of Engineers Middle East District direct the Primary 

Contracting Officer to 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 21 

3. direct Exelis to fully implement its quality control program in southern Afghanistan by requiring the 

contractor to ensure that it has sufficient personnel in place to establish a presence at more ANSF 

sites in the south, including hub locations in Farah and Zabul provinces, and conduct regular visits to 

facilities covered under that contract. 

AGENCY COMMENTS 

USACE provided written comments on a draft of this report, which are reproduced in appendix VI. In its 

response, USACE concurred with the three recommendations and described specific steps it is taking to 

address them. 

Specifically, in response to our first recommendation that USACE complete and implement plans and 

procedures to remove partial facilities from the O&M contracts, USACE stated that that Primary Contracting 

Officer is working with Exelis to develop the proper procedure. Once this process is complete, USACE will 

coordinate such a procedure with NTM-A for concurrence and full implementation. 

With respect to our recommendation two that USACE implement standardized procedures for overseeing the 

two contracts, USACE commented that the Regional Contacting Chief for the Transatlantic Division and the 

Primary Contracting Officer for the two contracts will develop implementing procedures to ensure that oversight 

is standardized and that contract quality assurance plans are consistently followed. 

In response to our third recommendation that USACE-TAM direct Exelis to fully implement its quality control 

program for the southern contract, USACE noted that Exelis and its primary contractor, Contrack International 

Incorporated, have filled more quality control manager and inspector positions—15 out of 19 authorized—and 

are recruiting additional personnel to fill the remaining vacancies. The subcontractor has also assigned quality 

control inspectors part-time to Zabul and Farah provinces. Although staffing shortfalls still exist, the number of 

quality control visits have increased, and more sites are being visited. USACE stated that it will continue to 

monitor Exelis and will provide further direction if necessary. 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 22 

APPENDIX I - SCOPE AND METHODOLOGY 

This report provides the results of the Office of the Special Inspector General for Afghanistan Reconstruction’s 

review of two U.S. Army Corps of Engineers (USACE) contracts with ITT Exelis Systems Corporation (Exelis) to 

provide operation and maintenance (O&M) at Afghanistan National Security Forces (ANSF) facilities throughout 

Afghanistan.44 This report assesses the extent to which (1) the North Atlantic Treaty Organization Training 

Mission-Afghanistan (NTM-A) and USACE are implementing efforts to develop the capacity of the ANSF to 

sustain their facilities after full transition in 2014, (2) Exelis has implemented the O&M contracts within the 

contracts’ terms, and (3) USACE and Exelis have provided oversight of the contracts. When we initiated this 

audit, the Department of Defense Office of Inspector General was conducting a related audit of the O&M 

contracts to determine whether the training portion of the contracts was effective in developing the ANSF’s 

infrastructure maintenance capabilities.45 To avoid duplication of efforts, we limited the scope of our first two 

audit objectives to Exelis’ execution of the O&M services portion of the contract; however, we included invoiced 

costs for training when calculating the total costs of the two contracts. This audit covered the period from 

January 2009 to July 2012. 

To assess the extent to which NTM-A and USACE are implementing efforts to develop the capacity of the ANSF 

to sustain their facilities after full transition in 2014, we examined the NTM-A Engineer Directorate’s (ENG) 

Infrastructure Training Advisory Group (ITAG) Campaign Plan, facility assessments, transition plans, and issue 

papers. We also reviewed Exelis documents, including training plans, training tasks by skill trade, monthly 

reports, and gap analyses, as well as training requirements in the two O&M contracts. We examined prior 

Department of Defense Office Inspector General reports on O&M training46 and logistical challenges.47 We 

observed O&M training being conducted at the Kabul Military Training Center in Kabul during our site visit in 

October 2011. In addition, we interviewed ENG and ITAG officials located in Kabul and at the various ANSF 

sites we visited. We also interviewed USACE officials, including the Primary Contracting Officer (PCO), O&M 

Branch Chiefs at the USACE Afghanistan Engineer District-North (TAN) and South (TAS), and others cognizant of 

training efforts. We also interviewed Exelis officials and subcontractor officials with Contrack International 

Incorporated officials, including program, site, and training managers. 

To assess the extent to which Exelis has implemented the O&M contracts within the contracts’ terms, we 

reviewed and analyzed the two O&M contracts—W912ER-10-D-0002 for facilities in northern Afghanistan and 

W912ER-10-D-0003 for facilities in southern Afghanistan—as well as all executed task orders and 

modifications and invoice packages Exelis submitted to the USACE Middle East District (TAM) from December 

2010 to May 2012. In addition, we examined USACE contract funding tracking spreadsheets, facility lists, and 

acquisition strategies developed during the pre-award phase of the contracts. We also reviewed various Exelis 

documents, including quality control plans, site visit reports, preventative maintenance inspection schedules, 

and incident reports. We reviewed the ITAG Campaign Plan, facility transition plans and issue papers, and 

O&M contract funding analyses. We conducted site visits to a judgmental sample of 20 facilities covered 

 

44 USACE awarded the O&M contracts to ITT Systems Corporation. In late 2011, the company changed its name to Exelis 

Systems Corporation. USACE modified the contracts to reflect this name change. As a result, we will refer to the company 

as Exelis in this report. 

45 See DODIG-2012-104, DoD Needs to Improve Vocational Training Efforts to Develop the Afghan National Security Forces 

Infrastructure Maintenance Capabilities, June 18, 1012. 

46 See DODIG-2012-104. 

47 See DODIG-2012-028, Assessment of U.S. Government and Coalition Efforts to Develop the Logistics Sustainment 

Capability of the Afghan National Army, December 9, 1011. 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 23 

under the northern and southern contracts. These facilities were located at 11 Afghan National Army (ANA) 

and Afghan National Police (ANP) sites—7 ANA and 4 ANP—in Kabul, Kandahar, Uruzgan, Herat, Balkh, Paktya, 

and Farah provinces. The facilities selected by contract and province were as follows: 

 North contract (6 sites) 

 Kabul: Kabul Military Training Center (ANA),48 Police District 3, and Pol-e-Charki Garrison (ANA) 

 Paktya: Gardez Garrison (ANA) 

 Balkh: Regional Logistics Center/Joint Regional Coordination Center (ANP) and Camp Shaheen 

(ANA)49

 South contract (5 sites) 

 Kandahar: Camp Hero (ANA) and Joint Regional Afghanistan National Security Forces 

Compound (ANP)50

 Uruzgan: 8th Commando Camp (ANA) 

 Farah: Farah Garrison (ANA)51

 Herat: Uniformed Police Regional Command Center 

We selected these facilities from a population of 505 facilities—318 in the north and 187 in the south—covered 

under the O&M contracts as of October 1, 2011. We considered several factors when making the selection: 

monthly cost of O&M services, facility type, occupying Afghan security force, location, and USACE feedback on 

security conditions and availability of agency assets to support the visits. See appendix V for more information 

about these sites and the facilities visited. Given the type and size of our sample, the results cannot be 

projected to the entire population of facilities covered under the contracts, and should be considered only to 

provide information regarding Exelis’ performance at those sites sampled. We also discussed issues we 

identified with USACE officials to determine the extent to which they had noted similar issues at other ANSF 

facilities. In addition, we interviewed USACE Transatlantic Division officials, including the PCO at USACE-TAM; 

O&M officials at USACE-TAN and USACE-TAS; Administrative Contracting Officers at USACE-TAN and USACE-TAS; 

and Contracting Officer’s Representatives (COR). We interviewed Exelis officials, including the program, quality 

control, and contracts managers, and Contrack International Incorporated officials. We also interviewed ENG 

officials, including the Director, O&M Branch Chief, ITAG Officer in Charge, and ITAG representatives at 

assigned to facilities we visited. We also interviewed the ANA Facility Engineer at Camp Hero and the 

Commander and Deputy Commander at the 8th Commando Camp. 

To assess the extent to which USACE and Exelis have provided oversight of the contracts, we reviewed and 

analyzed the two O&M base contracts, task orders, and modifications as well as contractor invoices. We 

reviewed USACE acquisition strategies and contract planning documents and relevant sections and clauses of 

the Federal Acquisition Regulation and USACE’s Engineer Regulation. We also reviewed prior audits of contract 

oversight USACE and the Government Accountability Office’s Framework for Assessing the Acquisition Function 

 

48 We previously reported on construction of this facility. See SIGAR Audit-12-2, Better Planning and Oversight Could Have 

Reduced Construction Delays and Costs at the Kabul Military Training Center, October 26, 2011. 

49 We previously reported on construction of this facility. See SIGAR Audit-11-9, ANA Facilities at Mazar-e-Sharif and Herat 

Generally Met Construction Requirements, but Contractor Oversight Should Be Strengthened, April 25, 2011. 

50 We previously reported on construction of this facility. See SIGAR Audit-10-12, ANP Compound at Kandahar Generally 

Met Contract Terms but Has Project Planning, Oversight, and Sustainability Issues, July 22, 2010. 

51 We previously reported on construction of this facility. See SIGAR Audit-10-14, ANA Garrison at Farah Appeared Well 

Built Overall but Some Construction Issues Should Be Addressed, July 30, 2010. 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 24 

at Federal Agencies.52 We analyzed all USACE quality assurance reports submitted by CORs from January to 

September 2011 and a random sample of 210 Afghan Quality Assurance Representatives (AQAR) submitted 

from April to October 2011. We selected 105—15 for each month—from a population of 7,119 reports 

submitted for the northern contract and 643 submitted for the southern contract. Although we did not use the 

results of our sample analysis make projections to the entire population of AQAR reports submitted, we did use 

the analysis to demonstrate the extent to which USACE oversight varied both across and within the northern 

and southern contracts. We also reviewed Exelis documents, including quality control management plans, site 

inspection reports, and inspector training plans. We conducted site visits to a judgmental sample of 20 

facilities located at 11 ANSF sites in 7 provinces. We interviewed the PCO, USACE-TAN and USACE-TAS O&M 

officials, CORs, ITAG representatives, and ANA officials at two sites. We also interviewed Exelis and Contrack 

International Incorporated officials, including program, site, and quality control managers. 

This report is one in a series of SIGAR performance audits focused on reconstruction contract outcomes, costs, 

and oversight. 

We did not use or rely on computer-processed data for the purposes of the audit objectives. With respect to 

assessing internal controls, we reviewed compliance with the Federal Acquisition Regulation as part of our 

second objective. The results of our assessment are included in the body of this report. 

We conducted work in Kabul, Kandahar, Uruzgan, Herat, Balkh, Paktya, and Farah provinces in Afghanistan 

from July 2011 to October 2012 in accordance with generally accepted government auditing standards. These 

standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a 

reasonable basis for our findings and conclusions based on our audit objectives. We believe the evidence 

obtained provides a reasonable basis for our findings and conclusions based on our audit objectives. This 

audit was conducted under the authority of Public Law No. 110-181, as amended; the Inspector General Act of 

1978; and the Inspector General Reform Act of 2008. 

 

52 GAO-05-218G, Framework for Assessing the Acquisition Function at Federal Agencies, September 2005. 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 25 

APPENDIX II - COST STRUCTURE OF O&M CONTRACTS AND SERVICES 

PROVIDED 

The northern and southern operation and maintenance (O&M) contracts for Afghanistan National Security 

Forces (ANSF) facilities—W912ER-10-D-0002 and W912ER-10-D-0003, respectively—are firm-fixed-price 

indefinite delivery/indefinite quantity service contracts valued at $800 million. Both contracts consist of 1 

base year plus 4 option years. The northern contract, valued at $450 million over the 5 years, allocates $75 

million for the base year and first option year, and $100 million for the last 3 option years. Under the southern 

contract, $50 million is allocated for the base year with $75 million allocated for each option year for a total 

contract value of $350 million. 

The U.S. Army Corps of Engineers Middle East District (USACE-TAM) allocates funding to the contracts through 

contract line items. The base contract line item for each contract year corresponds to the total funding 

capacity available for that year. USACE-TAM then allocates the funding available for each year to various subcontract lines items against which ITT Exelis Systems Corporation (Exelis), the prime contractor, submits 

invoices for payment of incurred costs.53 Sub-contract line items include such cost categories as mobilization, 

O&M, spare parts, warehousing, training, vehicles, and work orders. Because funding for the contracts is also 

allocated by ANSF component, subcontract line items for army and police facilities are separate. 

The two contracts require Exelis to provide services in 8 O&M functional areas (see table I). 

Table I - Examples of Services Provided under the O&M Contracts by Functional Area 

Buildings and structures maintenance Maintenance and repair of identified buildings, structures, and associated 

property equipment encompassing such trades as carpentry, mechanical, 

plumbing, electrical, metal, roofing, and masonry. 

Locksmith functions Provide duplicate keys, replace worn components of locks and cylinders, 

and installing and maintaining all types and designs of locks. 

Utility systems operation and maintenance Operation, repair, and maintenance of water production storage and 

distribution systems; waste water treatment plants and water wells; and 

power generation plants and substations. 

Heating, ventilation, and air conditioning 

systems operation and maintenance 

Operation, maintenance, repair, and replacement of heating, ventilating, 

and air conditioning equipment and systems, including all air distribution 

systems, hot water pumps, and vacuum systems. 

Grounds maintenance* Erosion control; clean up of debris, drains, and ditches; and snow removal.

Force protection maintenance Maintenance and repair of T-walls, security fences, guard towers, guard 

houses, and other access control devices. 

Surfaced area maintenance Maintenance and repair of roadways, parking lots, trails, and bridges. 

Pest Control Prevention and control of mosquitoes, termites, ants, flies, and other 

nuisance pests. 

Source: USACE O&M contracts W912ER-10-D-0003. *Grounds maintenance does not include landscaping. 

 

53 The contractor cannot charge costs to the base contract line items. 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 26 

APPENDIX III - TASK ORDERS AND MODIFICATIONS TO THE NORTHERN O&M 

CONTRACT, W912ER-10-D-0002 

The U.S. Army Corps of Engineers (USACE) Middle East District (TAM) awarded the northern operation and 

maintenance (O&M) contract—W912ER-10-D-0002—to ITT Exelis Systems Corporation on July 26, 2010, to 

provide O&M at Afghan National Army (ANA) and Afghan National Police (ANP) facilities across northern 

Afghanistan. With the official award, the contract’s initial funding capacity was capped at $75 million for 

phase-in and the base year. USACE-TAM exercised option year two of the contract on December 9, 2011, 

almost 8 months earlier than expected, to increase contract funding capacity due to a shortfall in funding for 

the first option year. As of June 2012, USACE-TAM had made 13 modifications to the base contract (see table 

II).54 

Table II - Modifications to Northern O&M Base Contract W912ER-10-D-0002 

Modification 

Number 

Effective Date Purpose Cost/Schedule 

Change 

P00001 August 13, 2010 Transfers contracting office authority to the USACE 

Afghanistan Engineer District-North, incorporates new 

clauses, and deletes clauses not applicable to the 

contract requirements. 

No change 

P00002 October 7, 2010 Incorporates revisions to the performance of work 

statement and incorporates the Department of 

Defense's contract security classification specification 

form. 

No change 

P00003 October 29, 2010 Revises performance of work statement and updates 

contract administration data. 

No change 

P00004 December 21, 2010 Modifies the performance of work statement. No change 

P00005 February 23, 2011 Clarifies the definition of the province factor. No change 

P00006 March 15, 2011 Delegates administrative contracting officer authority 

to the Afghanistan Engineering District-South with the 

Middle East District retaining primary contracting 

officer authority. 

No change 

P00007 April 6, 2011 Incorporates contract manpower reporting clause. No change 

P00008 June 4, 2011 Exercises Option Period 1, changes contract ordering 

period, and increases contract funding capacity. 

Changed ordering 

period to July 26, 2010, 

through July, 26 2012; 

increased contract 

capacity by $75 million 

to $150 million 

P00009 July 10, 2011 Adds Panjsher province to the contract. No change 

 

54 Modifications to the base O&M contract do not allocate funds to pay for the various costs the contractor incurs while 

implementing the contract. Rather, such modifications alter the terms of the contract and add funding capacity for services 

provided. 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 27 

Table II - Modifications to Northern O&M Base Contract W912ER-10-D-0002 

Modification 

Number 

Effective Date Purpose Cost/Schedule 

Change 

P00010 December 9, 2011 Exercises Option Period 2, changes contract ordering 

period, and increases contract funding capacity. 

Extended ordering 

period through July 26, 

2013; increased 

contract capacity by 

$100 million to $250 

million 

P00011 May 1, 2012 Changes contractor name from ITT Systems 

Corporation to Exelis Systems Corporation in all 

contract documents. 

No change 

P00012 May 3, 2012 Revises performance of work statement and deletes 

modification P00004. 

No change 

P00013 May 31, 2012 Incorporates a new quality assurance surveillance plan 

into the contract and deletes the previous plan. 

No change 

Source: SIGAR analysis of USACE contract W912ER-10-D-0002 and modifications. 

USACE-TAM executed task order 0001 of the northern O&M contract on July 28, 2010, which served as the 

notice to proceed for the contract and initiated a 90-day phase in period. The task order defined the period of 

performance as July 29, 2010, to October 26, 2010, and set initial contract costs at $11,441,105.37. USACETAM modified the task order once on October 15, 2010. The purpose of this modification was to change the 

description of the mobilization and demobilization sub-contract line item from ANA to ANP, and extend the 

periods of performance of several sub-contract line items to October 31 or November 30, 2010, depending on 

the line item. The total cost of the contract did not change. 

USACE-TAM executed task order 0002 on October 19, 2010 to provide funding for the base year. The task 

order defined the period of performance for the task order as November 1, 2010, to April 30, 2011.55 In 

addition, the task order increased the total contract cost by $35,730,910.74 to $47,172,016.11. 

Modification 9 extended the period of performance of the task order to July 26, 2011. Table III lists the 

modifications to task order 2 of the northern O&M contract. 

Table III - Modifications to Northern O&M Base W912ER-10-D-0002, Task Order 0002 

Modification 

Number Effective Date Purpose 

Cost/Schedule Change 

01 November 5, 2010 Changes periods of performance for base O&M 

contract line item and several sub-contract line 

items. 

Changed period of performance 

end date to March 31, 2011 

02 November 30, 2010 Provides additional O&M funding; describes 

the Contracting Officer's and Contracting 

Officer's Representative's responsibilities, and 

Increased total funded amount 

by $12,000,000 to 

$59,172,016.11 

 

55 The period of performance for the sub-contract line items under task order 0002 was either December 1, 2010, to April 

30, 2011, or November 1, 2010, to March 31, 2011, depending on the line item. 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 28 

Table III - Modifications to Northern O&M Base W912ER-10-D-0002, Task Order 0002 

Modification 

Number Effective Date Purpose 

Cost/Schedule Change 

provides additional billing instructions. 

03 December 1, 2010 Adds facilities to task order 2. No change 

04 December 21, 2010 Revises attachment listing pricing of O&M 

services at identified facilities. 

No change 

05 January 24, 2011 Replaces attachment listing pricing of O&M 

services at identified facilities. 

Decreased total contract cost 

by $10,118,860.15 to 

$49,053,155.96 

06 January 25, 2011 Corrects the ANA/ANP identification of several 

facilities. 

No change 

07 February 5, 2011 Incorporates bulk water delivery and septic 

removal services at 21 locations into contract. 

Increased total contract cost by 

$300,000.00 to 

$49,353,155.96 

08 March 10, 2011 Adds 19 facilities to task order 2. Increased total contract cost by 

$78,480.97 to 

$49,431,636.93 

09 April 1, 2011 Changes period of performance of task order 

2. 

Extended period of 

performance to July 26, 2011; 

increased total contract cost by 

$24,333,557.78 to 

$73,765,194.71 

10 May 1, 2011 Adds 11 facilities into task order 2. Increased total contract cost by 

$465,221.54 to 

$74,230,416.25 

11 May 28, 2011 Adds 4 facilities into task order 2. Increased total contract cost by 

$25,091.34 to 

$74,255,507.59 

12 July 25, 2011 Reclassifies sites and facilities where O&M and 

repair services were being performed under 

task order 2. 

Increased total contract cost by 

$19,167,677.27 to 

$93,423,184.86 

13 September 9, 2011 Incorporates bulk water delivery and septic 

removal services at legacy ANA locations 

throughout northern Afghanistan into contract. 

Increased total contract cost by 

$931,808.19 to 

$94,354,993.05 

14 September 23, 2011 Adds funding to spare parts sub-contract line 

items. 

Increased total contract cost by 

$318,139.16 to 

$94,673,132.21 

Source: SIGAR analysis of USACE contract W912ER-10-D-0002-0002 and modifications. 

USACE-TAM executed task order 0003 on July 27, 2011 to provide funding for option year one. The task order 

defined the period of performance for the task order as July 27, 2011, to December 26, 2011. In addition, the 

task order increased the total contract cost by $51,462,723.35 to $146,135,855.56. Modification 7 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 29 

extended the period of performance to July 26, 2012 and substantially increased the contact cost by over $77 

million. Table IV lists the modifications to task order 3 of the northern O&M contract. 

Table IV - Modifications to Northern O&M Contract W912ER-10-D-0002, Task Order 0003 

Modification 

Number Effective Date Purpose 

Cost/Schedule Change 

01 August 26, 2011 Replaces fiscal year 2011 ANSF funds with fiscal 

year 2010 ANSF funds. 

No change 

02 August 31, 2011 Adds 6 facilities to task order 3 and increases 

the total cost of the contract. 

Increased total funded 

amount by $434,026.25 to 

$146,569.881.81 

03 September 19, 2011 Adds requirement and performance or work 

statement for phase 2 of vocational and 

technical training at the ANA's Construction and 

Property Management Department (CPMD); 

defines the period of performance of the 

modification as October 8, 2011, to December 

26 2011. 

Increased total contract cost 

by $107,401.02 to 

$146,677,282.83 

04 November 1, 2011 Adds 2 facilities to task order 3. Increases total contract cost 

by $9,753.12 to 

$146,687,035.95 

05 December 1, 2011 Adds 3 facilities to task order 3. Increased total contract cost 

by $7,437.15 to 

$146,694,473.10 

06 December 7, 2011 Adds generator classes to training at CPMD. Increased total contract cost 

by $28,797.90 to 

$146,723,271.00 

07 December 26, 2011 Changes the period of performance for Option 

Period 1. 

Extended period of 

performance to July 26, 

2012; increased total funded 

amount by $77,391,854.95 

to $224,115,125.95 

08 January 18, 2012 Adds 4 facilities to task order 3. Increased total contract cost 

by $877,178.87 to 

$224,992,304.82 

09 March 8, 2012 Adds 3 facilities to task order 3 and removes 1 

facility. 

Decreased total contract 

cost by $1,101,845.15 to 

$223,890,459.67 

10 March 24, 2012 Adds 1 facility to task order 3. Increased total contract cost 

by $75,970.86 to 

$223,966,430.53 

11 April 3, 2012 Add vehicle relocation costs. Increased total contract cost 

by $19,401.71 to 

$223,985,832.24 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 30 

Table IV - Modifications to Northern O&M Contract W912ER-10-D-0002, Task Order 0003 

Modification 

Number Effective Date Purpose 

Cost/Schedule Change 

12 April 10, 2012 Adds Computerized Maintenance Management 

System Phase 1 demonstration to task order 3. 

Increased total contract cost 

by $18,093.80 to 

$224,003,926.04 

13 May 21, 2012 Adds fee to relocate a vehicle from one site to 

another. 

Increased total contract cost 

by $527 to 

$224,004,453.04 

14 June 5, 2012 Adds 8 facilities to task order 3 and removes 61 

facilities. 

Decreased total contract 

cost by $1,908,770.76 to 

$222,095,682.28 

Source: SIGAR analysis of USACE contract W912ER-10-D-0002-0003 and modifications. 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 31 

APPENDIX IV - TASK ORDERS AND MODIFICATIONS TO THE SOUTHERN O&M 

CONTRACT, W912ER-10-D-0003 

The U.S. Army Corps of Engineers (USACE) Middle East District (TAM) awarded the southern operation and 

maintenance (O&M) contract—W912ER-10-D-0003—to ITT Exelis Systems Corporation on July 27, 2010, to 

provide O&M at Afghan National Army (ANA) and Afghan National Police (ANP) facilities throughout southern 

Afghanistan. With the official award, the contract’s initial funding capacity was capped at $50 million for 

phase-in and the base year. As of June 2012, USACE-TAM had made 11 modifications to the base contract 

(see table V).56 

Table V - Modifications to Southern O&M Base Contract W912ER-10-D-0003 

Modification 

Number Effective Date Purpose 

Cost/Schedule 

Change 

P00001 August 13, 2010 Transfers contracting office authority to the USACE 

Afghanistan Engineer District-South, incorporates new 

clauses, and deletes clauses not applicable to the 

contract requirements. 

No change 

P00002 October 7, 2010 Incorporates revisions to the performance of work 

statement and incorporates the Department of 

Defense's contract security classification specification 

form. 

No change 

P00003 October 29, 2010 Revises performance of work statement and updates 

contract administration data clarifying that the USACE 

Middle East District retains primary contracting officer 

authority. 

No change 

P00004 December 21, 2010 Modifies the performance of work statement. No change 

P00005 February 23, 2011 Clarifies the definition of the province factor. No change 

P00006 March 15, 2011 Delegates administrative contracting officer authority 

to the Afghanistan Engineering District-South with the 

Middle East District retaining primary contracting 

officer responsibilities. 

No change 

P00007 March 20, 2011 Incorporates the Daykundi province and its province 

factor into the contract. 

No change 

P00008 April 6, 2011 Incorporates contract manpower reporting clause. No change 

P00009 June 4, 2011 Exercises Option Period 1, changes contract ordering 

period, and increases contract funding capacity. 

Changed ordering 

period to July 28, 2010, 

through July, 27 2012; 

increased contract 

capacity by $75 million 

 

56 Modifications to the base O&M contract do not allocate funds to pay for the various costs the contractor incurs while 

implementing the contract. Rather, such modifications alter the terms of the contract and add funding capacity for services 

provided. 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 32 

Table V - Modifications to Southern O&M Base Contract W912ER-10-D-0003 

Modification 

Number Effective Date Purpose 

Cost/Schedule 

Change 

to $125 million 

P00010 May 1, 2012 Changes contractor name from ITT Systems 

Corporation to Exelis Systems Corporation in all 

contract documents. 

No change 

P00011 May 3, 2012 Incorporates a revised performance of work statement 

and deletes modification P00004. 

No change 

Source: SIGAR analysis of USACE contract W912ER-10-D-0003 and modifications. 

USACE-TAM executed task order 0001 of the southern O&M contract on July 30, 2010, which served as the 

notice to proceed for the contract and initiated a 90-day phase in period. The task order defined the period of 

performance as July 30, 2010, to October 27, 2010, and set initial contract costs at $10,340,618.13. USACETAM modified the task order once on October 15, 2010. The purpose of this modification was to extend the 

periods of performance of several sub-contract line items to October 31 or November 30, 2010, depending on 

the line item. The total cost of the contract did not change. 

USACE-TAM executed task order 0002 on October 29, 2010 to provide funding for the base year. The task 

order defined the period of performance for the task order as November 1, 2010, to April 30, 2011.57 In 

addition, the task order increased the total contract cost by $22,938,896.47 to $33,279,514.60. 

Modification 1A extended the period of performance of the task order to July 27, 2011. Table VI lists the 

modifications to task order 0002 of the southern O&M contract. 

Table VI - Modifications to Southern O&M Contract W912ER-10-D-0003, Task Order 0002 

Modification 

Number Effective Date Purpose 

Cost/Schedule 

Change 

01 November 5, 2010 Changes the ordering period for the base year contract 

line item and the period of performance for several 

sub-contract line items. 

Changed the ordering 

period and period of 

performance end date 

to March 31, 2011 

02 November 30, 2010 Describes the Contracting Officer's and Contracting 

Officer's Representative's responsibilities, and provides 

additional billing instructions. 

Increased total contract 

cost by $12,000,000 to 

$45,279,514.60 

 03 December 1, 2010 Adds attachment listing ANSF facilities to be added to 

the contract from December 1 to January 2011. No change 

04 December 21, 2010 Revises attachment listing pricing of O&M services at 

identified facilities. No change 

05 February 5, 2011 Incorporates septic removal services at 19 locations 

into contract. No change 

 

57 The period of performance for the sub-contract line items under task order 2 was either December 1, 2010, to April 30, 

2011, or November 1, 2010, to March 31, 2011, depending on the line item. 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 33 

Table VI - Modifications to Southern O&M Contract W912ER-10-D-0003, Task Order 0002 

Modification 

Number Effective Date Purpose 

Cost/Schedule 

Change 

06 March 10, 2011 Adds 46 facilities to task order 2 and deobligates 

funding from two sub-contract line items. 

Decreased total contract 

cost by 

$11,102,676.02 to 

$34,176,838.58 

07 March 15, 2011 Corrects a funding error on modification 06 of task 

order 2. 

Increased total contract 

cost by $8,920.29 to 

$34,185,758.87 

 1A April 1, 2011 Changes the period of performance for task order 2. Extended period of 

performance to July 27, 

2011 (end of base 

year); increased total 

contract cost by 

$11,704,059.25 to 

$45,889,818.12 

1B April 1, 2011 Corrects a funding error on modification 1A of task 

order 2. 

Increased total contract 

cost by $641,019.71 to 

$46,530,897.83 

1C April 1, 2011 Adds 19 facilities into task order 2. Increased total contract 

cost by $896,971.95 to 

$47,427,869.78 

1D May 1, 2011 Adds 3 facilities into task order 2. Increased total contract 

cost by $3,396.00 to 

$47,431,265.78 

08 June 7, 2011 Removes 2 facilities from task order 2. Decreased total contract 

cost by $26,550.85 to 

$47,404,714.93 

09 October 21, 2011 Incorporates septic removal services at ANA locations 

throughout southern Afghanistan into contract. 

Increased total contract 

cost by $210,558.50 to 

$47,615,273.43 

Source: SIGAR analysis of USACE contract W912ER-10-D-0003-0002 and modifications. 

USACE-TAM executed task order 0003 on July 27, 2011 to provide funding for option year one. The task order 

defined the period of performance for the task order as July 28, 2011, to July 27, 2012. In addition, the task 

order increased the total contract cost by $55,505,814.24 to $103,121,087.67. Table VII lists the 

modifications to task order 0003 of the southern O&M contract. 

 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 34 

Table VII - Modifications to Southern O&M Contract W912ER-10-D-0003, Task Order 0003 

Modification 

Number Effective Date Purpose 

Cost/Schedule 

Change 

01 September 1, 2011 Replaces fiscal year 2011 ANSF funds with fiscal year 

2010 ANSF funds. 

No change 

02 October 12, 2011 Adds 6 facilities to task order 3. Increased total contract 

cost by $119,438.99 to 

$103,240,526.66 

03 November 1, 2011 Adds 8 facilities to task order 3. Increased total contract 

cost by $327,454.86 to 

$103,567,981.52 

04 November 30, 2011 Adds 2 facilities to task order 3 and removes 1 facility. Increased total contract 

cost by $27,406.97 to 

$103,595,388.49 

05 December 30, 2011 Adds 3 facilities to task order 3. Increased total contract 

cost by $79,766.73 to 

$103,675,155.22 

06 February 21, 2012 Adds 4 facilities to task order 3. Increased total contract 

cost by $54,948.70 to 

$103,730,103.92 

07 March 29, 2012 Adds 2 facilities to task order 3. Increased total contract 

cost by $15,941.41 to 

$103,746,045.33 

08 May 23, 2012 Corrects modification 04 of task order 3 and the 

attachment listing ANSF facilities covered under the 

contract to reflect that no facilities were removed 

under that modification. 

Increased total contract 

cost by $85,684.12 to 

$103,831,729.45 

09 May 24, 2012 Corrects carry-over errors in facilities attachment listing 

ANSF facilities covered under the contract. 

No change 

10 May 30, 2012 Adds 6 facilities to task order 3. Increased total contract 

cost by $37,344.25 to 

$103,869,073.70 

Source: SIGAR analysis of USACE contract W912ER-10-D-0003-0003 and modifications. 

 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 35 

APPENDIX V - ANSF SITE DETAILS 

To assess the extent to which ITT Exelis Systems Corporation had implemented the two operation and 

maintenance (O&M) contracts within the contracts’ terms, we selected a judgmental sample of 20 Afghanistan 

National Security (ANSF) facilities located at 11 Afghan National Army (ANA) and Afghan National Police (ANP) 

sites to visit from October 2011 to January 2012. These facilities were located in Kabul, Kandahar, Uruzgan, 

Herat, Balkh, Paktya, and Farah provinces. Figure I shows the locations of the ANSF sites we visited. 

We selected these facilities based on a combination of criteria: monthly cost of O&M services, facility type, 

occupying Afghan security force, location, and USACE feedback on security conditions and availability of agency 

assets to support the visits. As of June 30, 2012, O&M costs at these facilities were approximately $42 

million. 

Figure I - Locations of ANSF Sites Visited during Audit 

Source: SIGAR site visit reports. 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 36 

NORTHERN O&M CONTRACT 

We conducted site visits to 9 facilities at 6 ANSF sites covered under the northern O&M contracts. These 

consisted of 4 ANA and 2 ANP sites. O&M services at these facilities cost approximately $27.66 million as of 

June 30, 2012. 

Police District 3, Kabul 

Resident ANSF Entity

ANP 

Facilities Visited and Type (if different) 

Uniformed Police district headquarters 

Approximate Number of Structures Covered58

16 

Example of Structures Covered

Barracks, offices, warehouse, latrine, septic tank 

Date Added to O&M Contract

November 1, 2010 

Approximate Monthly O&M Costs for Facilities Visited

$7,144 

Estimated Total O&M Costs for Facilities Visited 

(as of June 30, 2012) 

$139,879 

Pol-e-Charki ANA Garrison, Kabul 

 

Resident ANSF Entity 

ANA 

Facilities Visited and Type (if different) 

Corps headquarters and ranges 

Approximate Number of Structures Covered 

152 plus ranges 

Example of Structures Covered 

Barracks, guard towers, waste water treatment facility, power plant, 

warehouse, clinic 

Date Added to O&M Contract 

December 1, 2010 

Approximate Monthly O&M Costs for Facilities Visited 

$316,234 

Estimated Total O&M Costs for Facilities Visited 

(as of June 30, 2012) 

$5.9 million 

 

58 The approximate number of structures is based on standard USACE facility specifications rather than specific facility 

plans and property listings. 

Source – SIGAR site inspection, January 16, 2012 

Source – SIGAR site inspection, November 8, 2011 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 37 

Kabul Military Training Center, Kabul 

 

Resident ANSF Entity 

ANA 

Facilities Visited and Type (if different)

Corps headquarters, Corps support battalion, and ranges 

Approximate Number of Structures Covered

228 plus ranges 

Example of Structures Covered

Barracks, reception house, guard towers, waste water 

treatment facility, power plant, warehouse, medical clinic 

Date Added to O&M Contract

December 1, 2010 

Approximate Monthly O&M Costs for Facilities Visited

$431,719 

Estimated Total O&M Costs for Facilities Visited 

(as of June 30, 2012) 

$8.0 million 

Gardez Garrison/Camp Thunder, Gardez, Paktya Province 

 

Resident ANSF Entity

ANA 

Facilities Visited and Type (if different)

Corps headquarters 

Approximate Number of Structures Covered 

152 

Example of Structures Covered 

Barracks, reception house, guard towers, waste water 

treatment facility, power plant, warehouse, medical clinic 

Date Added to O&M Contract

December 1, 2010 

Approximate Monthly O&M Costs for Facilities Visited

$310,395 

Estimated Total O&M Costs for Facilities Visited

(as of June 30, 2012) 

$5.8 million 

Source – SIGAR site inspection, November 12, 2011 

Source – SIGAR site inspection, January 10, 2012 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 38 

Regional Logistics Center/Joint Regional Coordination Center, Mazar-e Sharif, Balkh Province 

 

Resident ANSF Entity 

ANP 

Facilities Visited and Type (if different) 

Uniformed Police regional headquarters/joint regional 

Afghanistan National Security Forces compound 

Approximate Number of Structures Covered 

38 

Example of Structures Covered 

Department buildings, barracks, laundry, dining facility, 

water treatment facility, power generation facility, 

vehicle maintenance, storage

Date Added to O&M Contract 

November 1, 2010 

Approximate Monthly O&M Costs for Facilities Visited 

$30,706 

Estimated Total O&M Costs for Facilities Visited 

(as of June 30, 2012) 

$601,239 

Mazar-e Sharif Garrison/Camp Shaheen, Mazar-e Sharif, Balkh Province 

 

Resident ANSF Entity

ANA 

Facilities Visited and Type (if different)

Corps headquarters 

Approximate Number of Structures Covered

152 

Example of Structures Covered

Barracks, reception house, guard towers, waste water treatment 

facility, power plant, warehouse, medical clinic 

Date Added to O&M Contract

December 1, 2010 

Approximate Monthly O&M Costs for Facilities Visited

$387,780 

Estimated Total O&M Costs for Facilities Visited 

(as of June 30, 2012) 

$7.2 million 

 

Source – SIGAR site inspection, January 4, 2012 

Source – SIGAR site inspection, January 3, 2012 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 39 

SOUTHERN O&M CONTRACT 

We visited 11 facilities at 5 ANSF sites covered under the northern O&M contracts. These consisted of 3 ANA 

and 2 ANP sites. O&M services at these facilities cost approximately $14.34 million as of June 30, 2012. 

Camp Hero, Kandahar Province 

Resident ANSF Entity 

 ANA 

Facilities Visited and Type (if different) 

Kandahar Garrison (Corps headquarters), ANA Commando Camp 

(kandak), 205th Corps Support Battalion (billeting), and hospital 

addition 

Approximate Number of Structures Covered

193 

Example of Structures Covered

Barracks, reception house, guard towers, waste water 

treatment facility, power plant, warehouse, medical clinic, 

dining facility, small arms storage 

Date Added to O&M Contract

December 2, 201059

Approximate Monthly O&M Costs for Facilities Visited 

$459,012 

Estimated Total O&M Costs for Facilities Visited 

(as of June 30, 2012) 

$8.4 million 

Joint Regional Afghanistan National Security Forces Compound, Kandahar Province 

Resident ANSF Entity

ANP 

Facilities Visited and Type (if different) 

Afghanistan National Civil Order Police headquarters; 

Regional Logistics Center; Border Police zone 

headquarters; Uniformed Police regional headquarters 

Approximate Number of Structures Covered

180 

Example of Structures Covered

Barracks, power plant, warehouse, storage, dining 

facilities, administration buildings, water well building, 

training facility, vehicle parking 

Date Added to O&M Contract

December 2, 2010 

Approximate Monthly O&M Costs for Facilities Visited

$124,631 

Estimated Total O&M Costs for Facilities Visited 

(as of June 30, 2012)

$2.3 million 

 

59 USACE added the facilities we visited to the southern O&M contract on different days. The date provided indicates when 

the first facility at the site was added to the contract. 

Source – SIGAR site inspection, December 21, 2011 

Source – SIGAR site inspection, December 12, 2011 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 40 

8th Commando Camp, Tarin Kot, Uruzgan Province 

 

Resident ANSF Entity

ANA 

Facilities Visited and Type (if different)

Kandak 

Approximate Number of Structures Covered

35 

Example of Structures Covered

Barracks, administration building, dining facility, storage, 

sewage treatment, clinic, water tank 

Date Added to O&M Contract

January 1, 2011 

Approximate Monthly O&M Costs for Facilities Visited

$33,141 

Estimated Total O&M Costs for Facilities Visited 

(as of June 30, 2012)

$583,714 

Farah Garrison, Farah Province 

 

Resident ANSF Entity 

ANA 

Facilities Visited and Type (if different) 

Corps headquarters 

Approximate Number of Structures Covered 

152 

Example of Structures Covered 

Barracks, reception house, guard towers, waste water 

treatment facility, power plant, warehouse, medical clinic 

Date Added to O&M Contract 

December 2, 2010 

Approximate Monthly O&M Costs for Facilities Visited 

$150,667 

Estimated Total O&M Costs for Facilities Visited 

(as of April 30, 2012) 

$2.5 million 

Source – SIGAR site inspection, December 11, 2011 

Source – SIGAR site inspection, December 12, 2011 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 41 

Uniformed Police Regional Command Center, Herat Province 

 

Resident ANSF Entity 

ANP 

Facilities Visited and Type (if different) 

Uniformed Police regional headquarters/joint regional 

Afghanistan National Security Forces compound 

Approximate Number of Structures Covered 

38 

Example of Structures Covered 

Department buildings, barracks, laundry, dining facility, 

water treatment facility, power generation facility, 

vehicle maintenance, storage

Date Added to O&M Contract 

December 2, 2010 

Approximate Monthly O&M Costs for Facilities Visited 

$14,392 

Estimated Total O&M Costs for Facilities Visited 

(as of June 30, 2012) 

$267,408 

 

Source – SIGAR site inspection, December 13, 2011 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 42 

APPENDIX VI - COMMENTS FROM U.S. ARMY CORPS OF ENGINEERS

 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 43 

 

Now 

recommendation 

3. 

Now 

recommendation 

2. 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 44 

 

Now 

recommendation

1. 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 45 

APPENDIX VII - ACKNOWLEDGMENTS 

Monica Brym, Director of Special Projects 

Jenniffer Wilson, Deputy Assistant Inspector General for Audits (Kabul) 

Gabriele Tonsil, Analyst-in-Charge 

The following staff assisted with fieldwork: 

William “Lee” Dillingham, Senior Engineer 

Daniel Domke, Senior Auditor 

Bruce Gimbel, Senior Audit Manager 

Lise Pederson, Senior Engineer 

The following staff provided analytical support: 

Christina Andersson, Senior Program Analyst 

Emmitt Candler, Auditor 

Ryan Heger, Program Analyst 

Emmett Schneider, Auditor 

 
SIGAR Audit 13-1/O&M Contracts for ANSF Facilities Page 46 

This performance audit was 

conducted under project code 

SIGAR-049A. 
SIGAR’s Mission 

Obtaining Copies of SIGAR 

Reports and Testimonies 

To Report Fraud, Waste, and 

Abuse in Afghanistan 

Reconstruction Programs 

Public Affairs 

The mission of the Special Inspector General for Afghanistan 

Reconstruction (SIGAR) is to enhance oversight of programs for the 

reconstruction of Afghanistan by conducting independent and 

objective audits, inspections, and investigations on the use of 

taxpayer dollars and related funds. SIGAR works to provide accurate 

and balanced information, evaluations, analysis, and 

recommendations to help the U.S. Congress, U.S. agencies, and 

other decision-makers to make informed oversight, policy, and 

funding decisions to: 

 improve effectiveness of the overall reconstruction 

strategy and its component programs; 

 improve management and accountability over funds 

administered by U.S. and Afghan agencies and their 

contractors; 

 improve contracting and contract management 

processes; 

 prevent fraud, waste, and abuse; and 

 advance U.S. interests in reconstructing Afghanistan. 

To obtain copies of SIGAR documents at no cost, go to SIGAR’s Web 

site (www.sigar.mil). SIGAR posts all publically released reports, 

testimonies, and correspondence on its Web site. 

To help prevent fraud, waste, and abuse by reporting allegations of 

fraud, waste, abuse, mismanagement, and reprisal, contact SIGAR’s 

hotline: 

 Web: www.sigar.mil/fraud 

 Email: sigar.pentagon.inv.mbx.hotline@mail.mil 

 Phone Afghanistan: +93 (0) 700-10-7300 

 Phone DSN Afghanistan 318-237-3912 ext. 7303 

 Phone International: +1-866-329-8893 

 Phone DSN International: 312-664-0378 

 U.S. fax: +1-703-601-4065 

Public Affairs Officer 

 Phone: 703-545-5974 

 Email: sigar.pentagon.ccr.mbx.public-affairs@mail.mil 

 Mail: SIGAR Public Affairs 

2530 Crystal Drive 

Arlington, VA 22202