Summary: GAO reviewed the Army's procurement of locomotives for Thailand under the military assistance program (MAP), focusing on the consideration given to the user's requirements by the Army prior to its entering into a contract for the locomotives.
GAO noted that: (1) the Army spent about $1 million under MAP to buy and deliver to Thailand 10 locomotives, and accompanying spare parts, that could not perform the job for which they were intended; (2) in order for the United States to obtain locomotives which would meet Thailand's specific requirements, the Army entered into a contract for 10 replacement locomotives costing about $2.3 million; (3) GAO believes that this costly error occurred because responsible personnel of the Army Aviation Materiel Command (AVCOM) had not obtained clarification of contradictory technical requirements but, instead, had prepared a purchase description for and initiated procurement of the locomotives before ascertaining whether the locomotives would be able to perform the job for which they were intended; (4) GAO believes this error could have been avoided had AVCOM obtained clarification of the contractory requirements; and (5) in GAO's opinion, such clarification would have been facilitated by management controls requiring the user's review and approval of a purchase description for specialized equipment prior to the award of contract for the equipment.
