DoD's Contract Audit Agency Hobbled by Backlog

May 29, 2012

Billions of dollars in defense contract costs could go unaudited because of a mounting backlog at the Pentagon's audit agency.

The number of audits performed by the Defense Contract Audit Agency, which ensures that costs charged to the government by contractors are allowable and reasonable, has plummeted in recent years. Last year, the agency performed roughly a quarter the number of audits it did in 2008.

DCAA officials attribute the slowdown to their focus on quality and thoroughness in their audits.

DCAA already has a backlog of $560 billion in unaudited contracts that agencies have already paid, called incurred cost audits. 

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