Contract Pricing: DCAA's Methodology Change in Identifying 'High Risk' Contractors
NSIAD-92-183
Published: Jun 02, 1992. Publicly Released: Jun 08, 1992.
Skip to Highlights
Highlights
Pursuant to a congressional request, GAO reviewed the impact that Defense Contract Audit Agency (DCAA) changes had on procedures for designating contractors as high risk.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should direct the Director, DCAA, to revise its FY 1992 procedure for designating contractors as high risk to ensure that those contractors that historically have posed a great risk of defective pricing are included in the group of contractors that, for audit purposes, DCAA designates as high risk. |
Closed – Implemented
DOD revised its procedures so that contractors rated high risk for estimating deficiencies and high risk for historic patterns of defective pricing would not be excluded from the high risk list because of a low score on accounting systems. GAO preliminary review of the fiscal year 1993 high risk list shows this change is having the desired effect.
|
Full Report
Office of Public Affairs
Topics
Auditing standardsContract costsDefective pricingDefense auditsDefense cost controlDefense procurementDepartment of Defense contractorsInternal controlsRisk factorsAccounting systems