Contract Pricing: Subcontracts Are Significant in Prime Contract Defective Pricing

Pursuant to a congressional request, GAO evaluated the adequacy of controls for preventing fraud, waste, and mismanagement in Department of Defense (DOD) subcontracts and analyzed defective pricing audits performed by the Defense Contract Audit Agency (DCAA) to determine how much of the total amount of defective pricing reported by DCAA audits was related to subcontracts.