Closeout and Payment Processes for Cost-Reimbursable Contracts
January 23, 2001
Project ID: FI-2001-018
We found DOT was not properly administering closeout and payment of cost-reimbursable contracts. We also found that DOT did not close contracts in a timely manner, resulting in funds remaining obligated on completed contracts for as long as 12 years. As a result, DOT had little assurance that contractors actually incurred the $294 million on the 448 contracts that were not subjected to independent audits and internal desk audits. We excluded FAA because it uses a different acquisition system from the rest of DOT and will be audited separately.