Reports | Oct. 20, 2021

Audit of Cost-Reimbursement Contracts

The OIG’s Audit of Cost-Reimbursement Contracts revealed several deficiencies that had the potential to impact the agency’s ability to determine whether cost-reimbursement contract costs are allowable, allocable, and reasonable through the performance of due diligence regarding invoice review.  The OIG found ineffective and inefficient processes by the Contracting Officer Representatives and non-compliance with contract clauses and insufficient billing documentation.  The OIG questioned approximately $227 million in labor charges and more than $226,000 in travel charges. 

This report follows the OIG’s April 2019 release of an unclassified version of its audit of the agency’s use of award fee contracts.  In that audit, the OIG questioned all $636 million in award fees earned over multiple years associated with the 54 contracts that were examined.