More Effective Use of Audit Reports Needed To Reduce Contract Costs
NSIAD-83-54
Published: Oct 11, 1983. Publicly Released: Oct 11, 1983.
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Highlights
GAO reviewed the M1 Tank Program Office's contract administration practices for the first 2 years' procurement of the M1 tank. Specifically, GAO commented on the M1 contracting officer's actions regarding Defense Contract Audit Agency (DCAA) audit reports on progress payment overcharges to contractors and misallocated contractor costs on M1 contracts.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| U.S. Army Materiel Development and Readiness Command | The Commander, Army Materiel Development and Readiness Command, should closely monitor the M1 contracting officer's actions to ensure that the policies and procedures prescribed in Department of Defense Directive 7640.2 are followed, the findings in the DCAA audit reports are resolved as expeditiously as possible, and contractor overcharges resulting from accounting deficiencies cited in the DCAA reports are identified and recovered. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| U.S. Army Materiel Development and Readiness Command | The Commander, Army Materiel Development and Readiness Command, should instruct the M1 contracting officer to notify the contractor that interest penalties will be imposed on contract overcharges and interest assessed pursuant to the Defense Acquisition Regulation. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| U.S. Army Materiel Development and Readiness Command | The Commander, Army Materiel Development and Readiness Command, should ensure that the decision to deviate from normal practice in having a procurement command handle the contracting tasks associated with weapon system purchases is adequately documented, reviewed, and approved. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
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Topics
Contract administrationContract costsContract progress paymentsContracting officersContractor paymentsDefense auditsDefense cost controlDefense procurementOverpaymentsQuestionable payments