DCAA Subcontract Inventory

GAO provided information on the Defense Contract Audit Agency's (DCAA) inventory of subcontracts subject to the Truth in Negotiations Act, focusing on the inventory's incompleteness and deficiencies in the defective pricing policy. GAO noted that: (1) DCAA fails to timely include subcontracts in its inventory; (2) 15 of 25 subcontracts, totalling $71 million, were not included; (3) DCAA fails to retain subcontracts in the inventory for the required 3 years; and (4) DCAA combines subcontracts and subcontract modifications, rather than listing each separately, leading to understatements and incorrect numbers of contract actions subject to audit.