Contracting for Navy husbanding services: an analysis of the Fat Leonard case
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Authors
Whiteley, Jacob T.
Foster, Jimmy A.
Johnson, Kyle A.
Subjects
Navy husbanding service contracts
auditability theory
competent personnel
capable processes
effective internal controls
fraud schemes
contract management process
auditability theory
competent personnel
capable processes
effective internal controls
fraud schemes
contract management process
Advisors
Rendon, Juanita M.
Rendon, Rene G.
Date of Issue
2017-12
Date
Dec-17
Publisher
Monterey, California: Naval Postgraduate School
Language
Abstract
For over 25 years, the U.S. Navy contracted with Glenn Defense Marine Asia (GDMA) to provide husbanding services. In 2013, the Justice Department announced an investigation alleging that for years, GDMA had engaged in procurement fraud. The purpose of this research is to analyze Navy husbanding service contracting using the Fat Leonard case through the lens of auditability theory, applying contract management and internal control frameworks. This research analyzes each alleged act of fraud in the Fat Leonard case and aligns the act with the contract management phase in which the alleged act occurred and with the internal control component that most contributed to and allowed the alleged act to be perpetrated. The research findings identified collusion as the primary fraud scheme in the Fat Leonard case. Research findings show that the alleged acts of fraud occurred primarily in the buyer's contract administration and procurement planning phases and in the seller's pre-sales activity and contract administration phases. Furthermore, the findings indicate that the internal control deficiencies were in the control environment and information and communication components. Based on these findings, recommendations are provided to improve the auditability of husbanding service contracting.
Type
Thesis
Description
MBA Professional Report
Series/Report No
Department
Business & Public Policy (GSBPP)
Organization
Identifiers
NPS Report Number
Sponsors
Funder
Format
Citation
Distribution Statement
Approved for public release; distribution is unlimited.
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.