DOD auditors raise the limit on what they'll examine

Watchdog group cries foul over what they see as reduced oversight

The Defense Department has reduced the scope of contracts audited by the Defense Contract Audit Agency, according to a DCAA memo released today by the Project on Government Oversight, a watchdog group.

According to the memo, contracting officers' requests for DCAA reviews of contractor cost data must meet a threshold of $10 million for fixed-price proposals and $100 million for cost-type proposals, unless there are exceptional circumstances.

Previously, the threshold was $700,000 for fixed-price proposals and $10 million for cost-type proposals, POGO officials said in a post published on the organization's website.

Approximately $92 billion in annual DOD contracts will be affected by the new thresholds, POGO estimated, calling it a radical reduction in contract oversight by DCAA.

“POGO has long feared contractors and their government allies would block DCAA from exposing contractor ripoffs,” Nick Schwellenbach, POGO’s director of investigations, said today.“Why are billions of dollars being put at risk when [Defense] Secretary [Robert] Gates is demanding cost savings?”

DCAA officials were not immediately available for comment.

About the Author

Alice Lipowicz is a staff writer covering government 2.0, homeland security and other IT policies for Federal Computer Week.

Reader Comments

Tue, Nov 2, 2010

Take procurement OUT of the Pentagon, and the other cabinet departments as well. Buying Stuff is not part of any agency's main mission, except maybe for GSA and DLA. Procurement, other than low-dollar stuff where market or street price is the lowest available and a CC can be used, should be common-serviced out of one agency with transparent and consistent accounting and bidding practices, and an idependent audit process that nobody can influence. This isn't rocket surgery people- it is business 101.

Sun, Oct 31, 2010 GFS

I am thinking that there are a lot of problems within the Pentagon. The corruption trail has led there. The situation described in this article seems to confirm that. I hear that some of the problem players are not even military, but civilian employees in the Pentagon. Anyone have any specifics?

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