Hotline Allegations Regarding Defense Contract Management Agency Contracting Officer Actions on Several Business System Audit Reports.

摘要

Objective: We conducted this review to determine the validity of a DoD Hotline complaint alleging that a Defense Contract Management Agency (DCMA) contracting officer did not take timely or appropriate action on several Defense Contract Audit Agency (DCAA) audit reports covering the business systems of a large DoD contractor. Finding: We substantiated the DoD Hotline complaint. Even though the Defense Federal Acquisition Regulation Supplement states that the contracting officer should make a final determination within 30 days, the DCMA contracting officer has taken up to 1,373 days as of March 25, 2014. In addition, the contracting officer has not implemented withholdings for significant deficiencies. Also, the DCAA field audit office has not conducted timely follow-up audits of the reported business system deficiencies. Finally, DCAA did not obtain sufficient evidence in support of its July 29, 2013, memorandum stating that the contractor appeared to have implemented adequate controls for the remaining estimating system deficiencies. Recommendations: The Director, DCMA, should: instruct the contracting officer to make a final determination on the compensation system. Ensure the contracting officer implements withholdings for any disapproved business systems. Develop a written corrective action plan for improving DCMA quality assurance procedures to help ensure timely final determinations and implementation of monetary withholds for significant deficiencies. In addition, we recommend that DCAA rescind its July 29, 2013, memorandum addressing the estimating system and initiate follow-up audits of the reported business system deficiencies.