Two cases involving the Military Sealift Command's (MSC) contractor-operated ships illustrate the dangers of poor management controls and the resulting too-heavy reliance on contractors' integrity. One case involved fraudulent overtime practices by the crew members of a ship management company, and the second case involved the severe deterioration and improper crewing of MSC's sealift tankers. As a result of GAO's 1994 report on the sealift tankers, the Ranking Minority Member of the Subcommittee on Oversight of Government Management and the District of Columbia, Senate Committee on Governmental Affairs, asked GAO to examine MSC's contractor-operated ship programs. Specifically, GAO determined whether MSC has adequate management controls (1) to oversee contractors and prevent contract abuses and (2) to ensure contractual requirements are being met.


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