Financial Management: Reopening of Contracts in the Mechanization of Contract Administration Services System

摘要

The Defense Finance and Accounting Service planned to replace the payment and entitlement function performed by the Mechanization of Contract Administration Services system with a new or modified system. In anticipation of transitioning to the new contract payment system, the Defense Finance and Accounting Service and the Defense Contract Management Agency were attempting to close out as many contracts as possible. The Defense Finance and Accounting Service, Columbus and the Defense Contract Management Agency closed a substantial number of contracts prematurely and had to subsequently reopen them. In July 2002, the Mechanization of Contract Administration Services system contained 10,819 contracts that had been closed out and later reopened. Of these contracts, 6,631 were reopened in the 18-month period from January 2, 2001, to July 3, 2002, or on average, 368 contracts per month. Although the Defense Finance and Accounting Service, Columbus identified their errors that resulted in premature contract closure, additional improvements were needed to proactively prevent errors before they occurred. Likewise, the Defense Contract Management Agency needed to do a better job assisting the Defense Finance and Accounting Service, Columbus in the closure process on contracts for which it has primary responsibility. Contracts closed out in error cause the unnecessary use of resources at both Defense Finance and Accounting Service, Columbus and throughout the contracting community.