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Contract Pricing: DOD's Audit Follow-up System Is Inaccurate and Incomplete

NSIAD-92-138 Published: May 28, 1992. Publicly Released: Jun 04, 1992.
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Highlights

Pursuant to a congressional request, GAO reviewed the Department of Defense's (DOD) audit follow-up system coverage of cost-estimating reports issued by the Defense Contract Audit Agency (DCAA), focusing on whether the DOD audit follow-up system provides DOD managers with reliable information so that they can oversee the progress contractors make in correcting cost-estimating system deficiencies.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense The Secretary of Defense should direct the Director of the Defense Logistics Agency (DLA) to ensure that administrative contracting officers (ACO) verify that contractors have corrected all deficiencies cited in DCAA audits of cost-estimating systems before reporting disposition of the audit.
Closed – Implemented
On March 30, 1992, DLA issued guidance to ACO to hold open audit reports until all deficiencies were corrected.

Full Report

Full Report (24 pages)

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Topics

Auditing and Financial Management
Contract administrationContract costsContract oversightCost analysisDefense auditsDefense procurementDepartment of Defense contractorsManagement information systemsReporting requirementsContracting officers