Department of Defense Progress in Resolving Contract Audits
AFMD-84-4
Published: Oct 27, 1983. Publicly Released: Nov 21, 1983.
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Highlights
In response to a congressional request, GAO evaluated the Department of Defense's (DOD) contract audit resolution system to determine whether: (1) procurement officials comply with resolution system requirements; (2) the system meets government standards; and (3) the system needs improving.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Office of the Inspector General of the Army | The Inspector General, DOD, should periodically audit contracting officer resolution decisions. |
Closed – Implemented
The DOD Inspector General published its audit report on August 16, 1985, entitled Contracting Officer Decisions on Contract Audit Recommendations.
|
| Department of Defense | The Secretary of Defense should require performance appraisals to reflect officials' effectiveness in resolving contract audits. |
Closed – Implemented
DOD and service regulations have implemented this recommendation pending revisions to DOD Directive 7640.2.
|
| Department of Defense | The Secretary of Defense should compare the cost of having the Defense Contract Audit Agency report the status of audit resolutions with the cost of current requirements and implement the less costly approach. |
Closed – Implemented
On June 19, 1985, the Officer of Inspector General notified GAO that the results of its cost analysis showed that current reporting requirements in DOD Directive 7640.2 were cost advantageous.
|
| Office of the Inspector General of the Army | The Inspector General, DOD, should revise the contract auditing resolution information provided to Congress in his semiannual report to explain more fully how DOD uses contract audits. |
Closed – Implemented
The Office of the Inspector General changed the format of information presented in the report to better compare questioned costs and those sustained. However, the Inspector General rejected the portion of the recommendation for explaining resolution decisions because he wants to keep the reports brief. He added that Congress could obtain the information in other ways.
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Topics
Contract administrationCost analysisDefense procurementFinancial management systemsInternal auditsProgram evaluationAudit resolutionMilitary forcesContract oversightProcurement