Bill For Pentagon Audit Failures Adds Up

December 10, 2012

The inability of the Pentagon to properly audit certain contracts will result in significant financial losses each year, a recent Defense Department Inspector General (IG) report says.

The IG evaluated actions taken by Department of Defense (DOD) officials to align the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA) functions by increasing the dollar thresholds a contractor proposal must meet before a contracting officer can request a DCAA audit, focusing on the factors DOD officials considered in making the decision as well as controls established to ensure the change in dollar thresholds adequately protects the interests of the department and taxpayers.

“The Office of Defense Procurement and Acquisition Policy (DPAP) did not perform a business case analysis to support the decision to revise Defense Federal Acquisition Regulation Supplement (DFARS) Procedures Guidance and Instructions,” the IG says in its recent report.

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