FAA Oversight of Cost-Reimbursable Contracts
We publicly released our audit report which determined that FAA is not properly administering payment and closeout of cost-reimbursable contracts in accordance with acquisition regulations and guidance. We found that contracting officers were deficient in how they managed contracts from the time of award to closeout. We recommended that the FAA Administrator require the Chief Operating Officer, who will be appointed soon, to work with the FAA Air Traffic Services Subcommittee in developing a plan to restore accountability to contract management and report progress on resolving contract administration problems to the Deputy Secretary. We estimate that FAA could avoid potential improper payments of $132 million if audits are obtained and contract closeouts are performed adequately.