Contract Pricing. DoD's Use of the Truth in Negotiations Act Deterrents Could Be Increased
GENERAL ACCOUNTING OFFICE WASHINGTON DC NATIONAL SECURITY AND INTERNATIONAL AFFAIRS DIV
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A key safeguard intended to ensure fair and reasonable prices in negotiating contract actions averaging over 65 billion annually is the Truth in Negotiations Act 10 U.S.C. 2306a. Under this act, the government can recover defective pricing that results when contractors or subcontractors do not provide accurate, complete, and current data during contract negotiations. As of March 31, 1993, about 1.8 billion in defective pricing identified in Defense Contract Audit Agency audits was pending against Department of Defense DoD contractors. This Report, done at the request of the Chairman Senate Committee on Governmental Affairs, Addresses DoDs use of the acts deterrent features. Specifically, GAO reviewed DoDs settlement of audit findings, interest charges on overpayments, and penalties assessed in addition, GAO reviewed DoDs management oversight of the settlement process.
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