Army Needs Better Processes to Justify and Manage Cost-Reimbursement Contracts
OFFICE OF THE INSPECTOR GENERAL (DEPARTMENT OF DEFENSE) ALEXANDRIA VA
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We are required to perform this audit in accordance with the FY 2009 National Defense Authorization Act, section 864, Regulations on the Use of Cost Reimbursement Contracts. Our objective was to determine whether the Army complied with interim Federal Acquisition Regulation FAR revisions on the use of cost-reimbursement contracts by documenting that approval for the costreimbursement contract was at least one level above the contracting officer that cost-reimbursement contracts were justified how the requirements under contract could transition to firm-fixed-price in the future that Government resources were available to monitor the cost-reimbursement contract and that contractors had an adequate accounting system in place during the entire contract. This is the second in a planned series of audit reports on DoD compliance with the interim rule for the use of cost-reimbursement contracts.
- Administration and Management