Overseas Civilian Contractors

News and issues relating to Civilian Contractors working Overseas

Contractors complain audit agency has gotten too strict

By Marjorie Censer at The Washington Post

The defense industry is facing a changed — and some say more tense — relationship with the Defense Contract Audit Agency since the organization, under criticism from the Government Accountability Office, took steps to be more independent.

“While DCAA got criticized for being too lax, now they’ve gone to the other extreme,” said James J. Gallagher, a partner at McKenna Long & Aldridge.

The DCAA conducts audits meant to ensure the government gets a reasonable price for contracted services and supplies and that contractors are using the right methods, including accepted accounting and billing systems, to charge the government.

In fall 2009, the GAO released a report blasting the DCAA’s independence as compromised and concluding that the agency was failing to protect the public interest.

“They were trying to accommodate their customer, which is the DOD contracting community,” said Asif Khan, the GAO’s director for financial management and assurance, who noted that the agency of about 3,600 people was producing about 40,000 annual audits. “When they got pushback from the contractor . . . they let those findings drop.”  Please read the entire article here

January 31, 2011 - Posted by | Civilian Contractors, Contingency Contracting, Department of Defense, Government Contractor | ,

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