Settlement of Contractor Incurred Indirect Cost Audits

摘要

This audit was performed as a follow-on to our evaluation of Defense Contract Audit Agency 'Audits of Indirect Costs at Major Contractors.' Our overall objective was to evaluate whether contracting officers were effectively using contract audit reports to negotiate final indirect expense rates and assess penalties when appropriate. We also evaluated whether contracting officers were adequately documenting the basis for their rationale when they disagreed with contract audit reports on the allowability of costs or the assessment of penalties. For the 45 audit reports we reviewed, contracting officers made effective use of DCAA audit reports and sustained the audit recommendations on expressly unallowable questioned costs when negotiating final indirect expense rates. Contracting officers adequately documented the basis for rationale when there was disagreement with contract audit reports on the allowability of costs or the assessment of penalties.