More Incurred-Cost Audits of DOT Procurement Contracts Should Be Obtained
On August 29, 2007, we issued our report on incurred-cost audits of DOT procurement contracts. The report discusses the Department's initiative to use a new structured approach for obtaining incurred-cost audits of procurement contracts. However, we found that Operating Administrations had made little progress in obtaining these audits. Additionally, we found that although the Department has recovered over $4 for every audit dollar spent on these audits, contracting officers have not taken consistent actions in a timely manner to recover overpayments made to contractors. We reported that the Department has the potential to recover between $8 million and $10.3 million more in these overcharges. We recommended that the Department require Operating Administrations to review their fiscal year 2007 audit plans and document revisions, and ensure that audits are obtained and audit reports are resolved in accordance with departmental guidance. The Department generally agreed with our recommendations and also agreed that our estimated savings was reasonable for tracking purposes.