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Evaluation of Contracting Officer Actions on Penalties Recommended by Defense Contract Audit Agency

Project No. D2018-DAPOCF-0160.000

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We will begin the subject evaluation in May 2018.

Our objective is to determine whether Defense Contract Management Agency (DCMA) contracting officers are appropriately considering Defense Contract Audit Agency (DCAA) penalty recommendations and assessing or waiving penalties in accordance with the Federal Acquisition Regulation (FAR). FAR 42.709, “Penalties for Unallowable Costs,” addresses the assessment of penalties against contractors that include unallowable indirect costs in final indirect cost rate proposals.