Defense Contracting: Key Data Not Routinely Used in Progress Payment Reviews
NSIAD-92-1
Published: Jan 14, 1992. Publicly Released: Jan 14, 1992.
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Highlights
Pursuant to a congressional request, GAO reviewed excessive Navy progress payments to contractors associated with the A-12 Program, focusing on the adequacy of Department of Defense (DOD) procedures for reviewing contractors' requests for payment.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | To have reasonable and prompt assurances that progress payments are appropriate and accurate, the Secretary of Defense should require that: (1) ACO be provided with DPRO technical reports generated by the contractors' cost/schedule control systems, DPRO independent estimated completion costs, and production and delivery data; and (2) ACO use these data to identify contracts with performance problems as a basis to conduct detailed reviews of progress payment requests. |
Closed – Implemented
In response to the recommendation, the Defense Contract Audit Agency recently revised its audit program for review of progress payments. The Defense Contract Management Command has also developed a policy letter to emphasize the need for the Defense Plant Representative Office technical specialists to expeditiously communicate problems identified in contractor operations.
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Topics
Contract administrationContract progress paymentsContracting officersCost overrunsDefense cost controlDepartment of Defense contractorsOverpaymentsProgram evaluationAttack aircraftContract performance