Contract Pricing: Implementation of Cost Estimating Regulations

Pursuant to a congressional request, GAO reviewed contract auditors' and administrative contracting officers' compliance with Department of Defense (DOD) regulations for reviewing contractors' cost estimating systems, focusing on whether: (1) auditors and contracting officers jointly reviewed the estimating systems as a team effort; (2) estimating system reports prepared by the Defense Contract Audit Agency (DCAA) included appropriate recommendations for disapproving all or part of contractor systems; and (3) DOD contracting officers followed the prescribed procedures for correcting identified deficiencies.