Agency Implementation of Cost Accounting Standards: Generally Good but More Training Needed

Highlights

GAO examined how certain agencies are implementing cost accounting standards which must be observed in both existing and future negotiated national defense contracts.

Recommendations

Recommendations for Executive Action

Agency Affected	Recommendation	Status
Department of Defense	The Secretaries of Defense and Energy and the Administrator of NASA should eliminate appendix O of the Defense Acquisition Regulations or comparable agency procurement regulation appendixes and insert one page citing Title 4, Chapter III of the Code of Federal Regulations as a source of reference for the cost accounting standards. The need to reprint all of the standards in the relevant procurement regulations could thus be avoided.	Closed – Not Implemented DOE states that it is in compliance with the recommendation. DOD does not agree with the recommendation. NASA concurs and only references appendix O in its Federal Acquisition Regulations supplements.
Department of Energy	The Secretaries of Defense and Energy and the Administrator of NASA should eliminate appendix O of the Defense Acquisition Regulations or comparable agency procurement regulation appendixes and insert one page citing Title 4, Chapter III of the Code of Federal Regulations as a source of reference for the cost accounting standards. The need to reprint all of the standards in the relevant procurement regulations could thus be avoided.	Closed – Not Implemented DOE states that it is in compliance with the recommendation. DOD does not agree with the recommendation. NASA concurs and only references appendix O in its Federal Acquisition Regulations supplements.
National Aeronautics and Space Administration	The Secretaries of Defense and Energy and the Administrator of NASA should eliminate appendix O of the Defense Acquisition Regulations or comparable agency procurement regulation appendixes and insert one page citing Title 4, Chapter III of the Code of Federal Regulations as a source of reference for the cost accounting standards. The need to reprint all of the standards in the relevant procurement regulations could thus be avoided.	Closed – Not Implemented DOE states that it is in compliance with the recommendation. DOD does not agree with the recommendation. NASA concurs and only references appendix O in its Federal Acquisition Regulations supplements.
Department of Defense	The Secretaries of Defense and Energy and the Administrator of NASA should require cost accounting standards training as part of the entry-level training for all series GS 1102 contract management and procurement personnel who will be involved with national defense contracts.	Closed – Implemented Please call 202/512-6100 for information.
Department of Energy	The Secretaries of Defense and Energy and the Administrator of NASA should require cost accounting standards training as part of the entry-level training for all series GS 1102 contract management and procurement personnel who will be involved with national defense contracts.	Closed – Implemented Please call 202/512-6100 for information.
National Aeronautics and Space Administration	The Secretaries of Defense and Energy and the Administrator of NASA should require cost accounting standards training as part of the entry-level training for all series GS 1102 contract management and procurement personnel who will be involved with national defense contracts.	Closed – Implemented Please call 202/512-6100 for information.
Department of Defense	The Secretaries of Defense and Energy and the Administrator of NASA should provide advanced training, such as a 2-week training course in cost accounting standards, to administrative contracting officers charged with the responsibility of dealing with cost accounting standards issues.	Closed – Implemented Please call 202/512-6100 for information..
Department of Energy	The Secretaries of Defense and Energy and the Administrator of NASA should provide advanced training, such as a 2-week training course in cost accounting standards, to administrative contracting officers charged with the responsibility of dealing with cost accounting standards issues.	Closed – Implemented Please call 202/512-6100 for information.
National Aeronautics and Space Administration	The Secretaries of Defense and Energy and the Administrator of NASA should provide advanced training, such as a 2-week training course in cost accounting standards, to administrative contracting officers charged with the responsibility of dealing with cost accounting standards issues.	Closed – Implemented Please call 202/512-6100 for information.
Department of Defense	The Secretaries of Defense and Energy and the Administrator of NASA should strengthen their internal controls to increase the accuracy and reliability of contract data recorded on forms currently sent to the Federal Procurement Data Center.	Closed – Implemented Please call 202/512-6100 for information.
Department of Energy	The Secretaries of Defense and Energy and the Administrator of NASA should strengthen their internal controls to increase the accuracy and reliability of contract data recorded on forms currently sent to the Federal Procurement Data Center.	Closed – Implemented Please call 202/512-6100 for information.
National Aeronautics and Space Administration	The Secretaries of Defense and Energy and the Administrator of NASA should strengthen their internal controls to increase the accuracy and reliability of contract data recorded on forms currently sent to the Federal Procurement Data Center.	Closed – Implemented Please call 202/512-6100 for information.

See All 12 Recommendations

Full Report

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Chuck Young

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Topics

Auditing and Financial Management

Cost accounting standards complianceDatabasesEmployee trainingFederal regulationsInteragency relationsInternal controlsMilitary procurementNegotiated procurementAccounting standardsCost accounting