Review of the Medical Equipment Purchased for the Primary Healthcare Centers Associated with Parsons Global Services, Inc., Contract Number W914NS-04-D-0006

On March 25, 2004, contract W914NS-04-D-0006, a cost-plus award fee type contract, was awarded to Parsons Delaware, Inc. The executing contractor's name was changed to Parsons Global Services, Inc. (Parsons) by a contract amendment on April 8, 2005. Under this contract Parsons was required to construct 150 Primary Healthcare Centers (PHCs) as well as provide and install 151 medical and dental equipment sets for each of the 150 PHCs as well as a medical training academy. The total definitized cost of the equipment was approximately $70 million. In April 2006, the Special Inspector General for Iraq Reconstruction (SIGIR) reported on the construction phase of this contract1 and issued an interim report 2 to alert responsible U.S. government agencies management to concerns we noted on the accountability for and utilization of the medical equipment shortly after this audit began. These concerns included: (1) the lack of written plans for the acceptance, storage, and use of the 131 medical equipment sets to be delivered by Parsons in April 2006 that were in excess to the current PHC needs as a result of descoping the number of PHCs to be constructed from 150 to 20, and the non-construction of the medical training academy (whose construction was not part of the Parsons contract); (2) the need to ensure U.S. government accountability of the equipment upon delivery to the Iraqi Ministry of Health warehouse in Erbil, Iraq by Parsons; and (3) U.S. government's inability to ensure proper protection and accountability of equipment to be stored in an Iraqi warehouse.