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Defense Contracting: DOD Initiative to Address Audit Backlog Shows Promise, but Additional Management Needed to Close Aging Contracts
Timothy J. DiNapoli (au)
DOD has a large volume of contracts that have not been closed on time. Closing a contract includes tasks such as verifying that the goods and services were provided and making final payment to the contractor. Closing contracts within required time frames can limit the governmentäó»s exposure to certain financial risks. One reason why some contracts are not being closed is the large backlog of incurred cost audits that must first be completed. These audits, conducted by DCAA, ensure that the costs contractors have incurred are permissible under government regulations. This report reviews the criteria and procedures for conducting incurred cost audits, among other things. It assessed (1) efforts to reduce the backlog of incurred cost audits and (2) the challenges DOD faces in addressing the contract closeout backlog. Tables and figures. This is a print on demand report.
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