Contract Pricing: Subcontractor Defective Pricing Audits

Pursuant to a congressional request, GAO evaluated the adequacy of controls for preventing fraud, waste, and mismanagement in Department of Defense (DOD) subcontracts and analyzed defective pricing audits performed by the Defense Contract Audit Agency (DCAA) to determine: (1) if subcontractors ensured fair and reasonable prices on noncompetitive procurements; (2) the frequency with which defective pricing occurred in subcontracts; and (3) the dollar impact of defective pricing.