Contract Pricing: DCAA's Audit Coverage Lowered by Lack of Subcontract Information

DCAA introduced a proposal to modify the acquisition regulations to require DOD contractors to notify the government of all subcontracts subject to audit for defective pricing. The Defense Acquisition Regulation Council agreed and submitted its proposal for amending the regulations to the Deputy Under Secretary of Defense (Acquisition Reform). In July 1994, the Deputy Under Secretary concluded that the imposition of new reporting requirements was contrary to the basic tenet of the acquisition reform effort to streamline the acquisition process and did not concur in the implementation of the reporting requirement. This nonconcurrence precluded the DAR Council from further processing the rule for approval and, in August 1994, the case was closed without further action.