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Audit Initiated of DOT's Compliance with Federal Procurement Provisions Regarding the Use of Cost-Reimbursement Contracts

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The Office of Inspector General is conducting an audit of the Department of Transportation’s (DOT) compliance with revisions made to the Federal Acquisition Regulations (FAR) regarding the use and administration of its cost-reimbursement contracts.  The Duncan Hunter National Defense Authorization Act for Fiscal Year 2009 requires revisions to the FAR to address the use and management of cost-reimbursement contracts.  In addition, the Act also requires Offices of Inspector General to review their agencies’ compliance with the revisions within one year of the revisions being published.  Given these legislative requirements, our audit objective is to determine whether DOT and its Operating Administrations complied with the FAR revisions that address:  (1) appropriate use of cost-reimbursement contracts; (2) acquisition planning to support the selection of cost-reimbursement contracts; and (3) acquisition resources necessary to award and manage cost-reimbursement contracts.