Acquisition process flaws are hampering the ability of the U.S. National Imagery and Mapping Agency (NIMA) to award contracts for professional services in an efficient and effective manner, possibly leading to overspending, according to an internal U.S. Defense Department audit report.

The Pentagon’s inspector general found that NIMA has known about problems with its acquisition process but has yet to address them. Among these problems are inadequate training for contracting personnel, frequent staff turnover and lack of oversight by senior officials, according to the June 6 report, "Service Contracts at the National Imagery and Mapping Agency."

As a result of these problems, NIMA’s service contracting operations are susceptible to fraud and waste, the report said.

The report was based on a Pentagon audit of contracts for services such as mapping product development, staff training and operating the agency’s computer systems, said Shaun Wiggins, a spokesman for the inspector general’s office. NIMA spent $1.3 billion on these types of contracts between 2000 and 2002. According to the report, the problems occur mainly on contracts whose value is less than $30 million.

The auditors examined 86 small contracts and contract modifications, and found that all but one of them either lacked independent government cost estimates or contained inadequate or flawed estimates, the report said. Most of the technical evaluations and price negotiation memoranda required for the contracts were missing or inadequate, the report said.

The report also said NIMA was not following up on problems identified by its own internal audits.

In one case cited in the report, NIMA’s inspector general concluded in 2001 that the agency’s acquisition tracking system could not properly evaluate contracts, and recommended that the agency periodically review the accuracy of its data. However, no such actions have been taken, the Pentagon auditors said.

The report recommended that NIMA’s director develop improved procedures for dealing with small contracts, and offer better training to contracting personnel. NIMA also should increase its senior-level contract oversight and conduct reviews of its contracts, the report said.

The report said NIMA did not respond to the inspector general’s request for comment on a draft version of the document. There was no response from NIMA in the final version of the report.

In a written statement provided by Joan Mears, a NIMA spokeswoman, the agency said it concurs with the assertion in the inspector general’s report "that procurement files should contain more comprehensive documentation. We are pleased that the audit report had no findings that NIMA procurement actions were improper or inefficient."

Mears declined to clarify the agency’s interpretation of the inspector general’s report.

"NIMA has people and processes in place that have a well-established history of efficient and effective stewardship of public funds," the NIMA statement said. "The administrative items referenced in the [inspector general’s] audit report relate to improvements that are already being implemented."

The NIMA statement also said the agency would officially respond to the inspector general’s final report.