The 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.
