Report on DoD's Management of Undefinitized Contractual Actions
DEPARTMENT OF DEFENSE ALEXANDRIA VA OFFICE OF THE INSPECTOR GENERAL
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Public Law 99-591, section 908b requires the DoD Inspector General to periodically audit undefinitized contractual actions UCAs and submit a report to Congress. This is a summary of five reports discussing DoD compliance with section 2326, title 10, United States Code. We reviewed a nonstatistical sample of 251 UCAs with a total not-to-exceed value of about 15 billion awarded by the Army Contracting Command-Redstone Arsenal, Naval Air Systems Command, Marine Corps Systems Command, Air Force Electronic Systems Center, and Air Force Space and Missile Systems Center from FY 2004 through FY 2009 to determine whether contracting personnel complied with the restrictions of the United States Code and whether they appropriately justified and definitized UCAs at reasonable prices. We found that DoD contracting personnel did not consistently comply with statutory and DoD requirements for managing UCAs for 216 of the 251 UCAs that we reviewed. As a result, DoD assumed additional cost risk and may have paid excessive profit and more than fair and reasonable prices. Defense Procurement and Acquisition Policy personnel should revise the Defense Federal Acquisition Regulation Supplement Procedures, Guidance, and Information 217.74 to provide additional guidance for managing UCAs.
- Administration and Management
- Economics and Cost Analysis
- Military Forces and Organizations