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Contract Pricing: Issues Related to DCAA Staff Levels

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Report Type Reports and Testimonies
Report Date July 1, 1993
Report No. NSIAD-93-225
Subject
Summary:

As part of the overall military downsizing, the Defense Contract Audit Agency's (DCAA) staffing has been cut significantly--from a peak of about 7,000 positions in fiscal year 1990 to 5,650 positions in fiscal year 1993. For fiscal year 1994, the President has proposed an increase of about 70 positions at the agency. DCAA must have adequate resources to protect the government from overpriced contracts. GAO believes that the debate over DCAA staffing levels must take into account the following: (1) ensuring adequate review of subcontractors for defective pricing, (2) ensuring that the government is protected from unnecessary contractor overhead costs, (3) reducing the huge backlog of audits of contractor incurred costs, and (4) ensuring adequate levels of transaction testing--tracing expenditures back to supporting documentation and evaluating their allowability--to spot unallowable contractor cost submissions.

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