Nov. 22, 2013
Missile Defense Agency and Defense Microelectronics Activity Use of Cost-Reimbursement Contracts
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 Missile Defense Agency (MDA) and the Defense Microelectronics Activity (DMEA) complied with interim Federal Acquisition Regulation revisions on the use of costreimbursement contracts by documenting:
that approval for the cost-reimbursementcontract was at least one level above the contracting officer;
that cost-reimbursement contracts were justified;
how the requirements under the 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 at contract award.