The Defense Department’s Inspector General has called on the U.S. Army to tighten the way it manages labor detention charges at Military Ocean Terminal Sunny Point.
The IG said Wednesday the Army Military Surface Deployment and Distribution Command mistook contractor safety briefings for labor detention charges, failed to check the accuracy of contractor labor detention charge entries and failed to recoup labor detention charges caused by other entities.
The findings were based on the review of a statistical sample of 120 out of 1,260 service dates when MOTSU incurred labor detention charges.
SDDC erroneously paid $1.2 million to the MOTSU’s terminal contractor out of the $3.1 million in labor detention charges incurred at MOTSU and paid by SDDC in fiscal years 2013 and 2014 because of the omissions.
IG urges the U.S. Transportation Command to ensure compliance of charges billed for safety briefings with contract terms, recover costs from the contractor incurred from erroneous charges and implement proper review of time records that justify labor detention charge invoices.
