About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

NSIAD-92-161R 1 (1992-04-14)

handle is hein.gao/gaobacjzz0001 and id is 1 raw text is: United States GAO General Accounting Ofice Washington, D.C. 20548 National Security and Interational Affairs Division B-219741 April 14, 1992 li1111111 146352 The Honorable William V. Roth, Jr. United States Senate Dear Senator Roth: In August 1990, we reported to you' that between October 1, 1987, and December 31, 1989, the Defense Contract Audit Agency (DCAA) completed 123 compensation reviews that identified, after reductions based on additional contractor data submissions or changes in DCAA audit guidance,2 approximately $340 million in unreasonable compensation. The DCAA Compensation Program Manager told us that 39 of these reviews, which identified unreasonable compensation of about $53 million, had been settled with contractors for $17 million--less than 33 percent of DCAA's findings--at the time of our review. We started a second review to determine why DCAA's compensation reviews were not resulting in more recoveries to the government. At 8 of the 12 contractors we visited, the Department of Defense's (DOD) administrative contracting officers (ACO) gave several reasons for not supporting DCAA compensation review findings. Three ACOs expressed concern that the government could not sustain a DCAA finding against a contractor's legal challenge when the wages questioned were negotiated under a collective bargaining agreement. These ACOs based their conclusions on, among other things, advice from their respective regional legal counsels or on a 1990 decision by the government not to fight a contractor's appeal when a collective bargaining agreement was involved. Contract Pricing: Reviews of Defense Contractor Compensation Costs (GAO/NSIAD-90-249FS, Aug. 29, 1990). 2Changes in DCAA audit guidance included things such as changes in DCAA's treatment of contractor fringe benefits. GAO/NSIAD-92-161R DCAA Compensation Reviews

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most