The Defense Contract Management Agency (DCMA) provides contract administration services for DOD buying activities. Its contract management offices (CMO) work with defense contractors to help ensure that goods and services are delivered on time, at projected cost, and that they meet performance requirements. DCMA also supports combatant commanders during contingency operations. As DCMA recovers from years of significant downsizing, GAO was asked to (1) assess how the agency is positioning itself to meet its missions, (2) determine the extent to which contingency missions affect its oversight domestically, and (3) identify other factors that may affect its domestic missions going forward. GAO reviewed regulations, policies, and guidance, analyzed the status of contractor business systems for 17 defense contractors, and interviewed a wide range of DCMA officials.
Recommendations for Executive Action
|Department of Defense||The Secretary of Defense should work with DCMA and DCAA to identify and execute options, such as hiring external auditors, to assist in conducting audits of contractor business systems as an interim step until DCAA can build its workforce enough to fulfill this responsibility.|
|Defense Contract Management Agency||The Director of the DCMA should identify ways to accurately and transparently reflect the current status of business systems, such as changing the status of a system to "unassessed" when a system has not been audited within DCAA's time frames.|
|Defense Contract Management Agency||The Director of the DCMA should clarify for the CMOs the specific plans for how operations and maintenance (O&M) funding is to be provided to enable CMOs to continue supporting new hires brought in under the Defense Acquisition Workforce Development Fund and how Emergency Essential (EE) personnel are funded when working at domestic CMOs, given the confusion regarding this issue.|