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Inspector General Audits Defense Department’s Cost-Reimbursement Contracting Process

ContractSigningThe Office of Inspector General has issued an audit report that indicates the Defense Department‘s contracting personnel failed to implement the necessary rule for cost-reimbursement contracts totaling nearly $31.7 billion.

IG released the report Friday with a goal to review DoD’s compliance with the revised interim federal acquisition regulation rule on cost-reimbursement contracts.

The office also recommends that the deputy director for contract policy and international contracting, defense procurement and acquisition policy issue guidance to establish the criteria for approving cost-reimbursement contracts.

IG also seeks to reinforce regulations on transitioning a cost-reimbursement contract to a firm-fixed-price contract and to set best practices for evaluating the contractor’s accounting system.

IG further recommends discussion over broader contracting policies on issuing a cost-reimbursement contract.

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