Managing contractor risk
Regulatory and legislative updates have altered compliance efforts of government contractors, as well as the enforcement efforts of Defense Contract Audit Agency (DCAA).
About the article
US Department of Defense spending on defense contracts has increased significantly in the last decade. Along with the surge in spending came the need for rapid award and performance of contracts, which increased opportunities for wasteful and fraudulent activities.
Recent regulatory updates demonstrate that contractor business systems, internal controls, and compliance processes are at the forefront of government oversight efforts. Many contractors have come under increased scrutiny by the DCAA, with numerous audits resulting in disapprovals of contractor business systems, withholding of claimed costs, and disallowance of costs.