CAM - April 8, 2011 - Chapter 14 - Other Contract Audit Assignments

Defense Contract Audit Agency

Informations

• Publié par: Nethug
• Nombre de lectures: 22
• Langue: English

Extrait

August 18, 2011 14(1)
CHAPTER 14

Table of Contents

Paragraph Page
14-000 Other Contract Audit Assignments
14-001 Scope of Chapter.................................................................................... 1401

14-100 Section 1 --- Postaward Audits of Contractor Cost or Pricing Data
14-101 Introduction............................................................................................ 1401

14-102 The DCAA Postaward Audit Program................................................... 1401

14-103 Truth in Negotiations Act (TINA) ......................................................... 1402

14-103.1 Purpose of TINA................................................................... 1402

14-103.2 TINA Applicability............................................................... 1402

14-104 Cost or Pricing Data............................................................................... 1403

14-104.1 Legislative and Regulatory Background............................... 1403

14-104.2 TINA Definition ................................................................... 1404

14-104.3 FAR Definition ..................................................................... 1404

14-104.4 Determining What Data are Cost or Pricing Data................. 1404

14-104.5 Judgments Intertwined With Facts........................................ 1405

14-104.6 Reasonably Available Data................................................... 1405

14-104.7 Errors in Cost or Pricing Data............................................... 1406

14-105 Submission or Disclosure of Cost or Pricing Data................................. 1406

14-105.1 TINA Requirements.............................................................. 1406

14-105.2 FAR Requirements ............................................................... 1406

14-105.3 Submission Versus Availability of Data............................... 1407

14-105.4 Contractor Analysis and Disclosure...................................... 1407

14-105.5 Updating Cost or Pricing Data........................................... 1407

14-106 Contracting Officer's Designated Representatives for Receiving Cost

or Pricing Data ..................................................................................... 1408

14-107 Certificate of Current Cost or Pricing Data............................................ 1409

14-108 Subcontractor Cost or Pricing Data........................................................ 1410

14-109 Natural and Probable Consequence of Defective Data .......................... 1411

14-110 Government's Right of Access to Records............................................. 1411

14-111 Contracting Officer's Record of Price Negotiations............................... 1412

14-112 Contract Clauses .................................................................................... 1412

14-112.1 Price Reduction for Defective Cost or Pricing Data ............. 1412

14-112.2 Examination of Records........................................................ 1413

14-112.3 Multiple Award Schedule (MAS) Contracts......................... 1413

14-113 Requirements and Program Plans (Postaward Audits)........................... 1413

14-113.1 Requirements Plan Development.......................................... 1413

DCAA Contract Audit Manual 14(2) August 18, 2011
Paragraph Page
14-113.2 Program Plan Coordination with Government and

Contractor Personnel..................................................... 1414

14-113.3 Timing of Audit .................................................................... 1414

14-114 Audit Program for Postaward Audits ..................................................... 1415

14-115 Obtaining Price Negotiation Memorandums and Requesting Data for

the Audit............................................................................................... 1415

14-116 Establishing the Baseline for Audit, Determining the Defective Data,

and Calculating the Recommended Price Adjustment (Postaward

Audits) ................................................................................................. 1416

14-116.1 Communicating with the Contracting Officer at the Start

of the Audit ................................................................... 1417

14-116.2 Baseline for Audit................................................................. 1417

14-116.3 Determining the Potential Defective Data ............................ 1418

14-116.4 Calculating the Recommended Price Adjustment................. 1418

14-117 Possible Defective Pricing Indicators .................................................... 1420

14-118 Treatment of Offsets .............................................................................. 1421

14-119 Subcontract Audit Procedures (Postaward Audits) ................................ 1422

14-119.1 Prime and Subcontract Auditor Responsibilities for

Subcontract Costs ......................................................... 1423

14-119.2 Release of Subcontractor Data to Higher-tier Contractors.... 1424

14-119.3 Subcontract Defective Pricing - Significant Dates................ 1424

14-119.4 Handling Subcontract Price Adjustments ............................. 1425

14-120 Other Audit Considerations .................................................................. 1426

14-120.1 Materiality of the Defective Pricing Findings .................... 1426

14-120.2 Defective Pricing from CAS Noncompliances ..................... 1426

14-120.3 Systemic Defective Pricing Issues (Non-CAS)..................... 1427

14-120.4 Defective Pricing "Sweeps".................................................. 1427

14-120.5 Statistical Sampling Techniques in Postaward Audits ............ 1428

14-120.6 Obtaining Third Party Confirmations ................................... 1429

14-120.7 Other Administrative Audit Considerations.......................... 1429

14-121 Findings and Conditions Requiring Further Pursuit as Potential Cases

of Fraud (Postaward Audits) ................................................................ 1430

14-121.1 Statutory Provisions.............................................................. 1430

14-121.2 Examples of Conditions Warranting Consideration of a

Fraud Referral............................................................... 1430

14-122 Discussing Audit Findings ..................................................................... 1431

14-123 Reporting Results of Audit (Postaward) ................................................ 1432

14-124 Charging Interest When Defective Pricing is Found.............................. 1432

14-125 Interest Rates – Defective Pricing.......................................................... 1434

14-126 Resolution of Audit Findings ................................................................. 1437

Figure 14-1-1 (Ref. 14-124) Example of an Exhibit Used to Determine the

Base and Simple Interest Computation on a Firm-Fixed-Price

Contract Action Required Under Section 952 of the FY 1987

Authorization Act and FAR 15.407-1(b)(7)......................................... 1438

DCAA Contract Audit Manual August 18, 2011 14(3)
Paragraph Page
14-200 Section 2 --- Audit of Progress Payments
14-201 Introduction............................................................................................ 1440

14-202 FAR/DFARS Provisions ........................................................................ 1440

14-202.1 Customary or Unusual .......................................................... 1440

14-202.2 Approval of Progress Payment Requests .............................. 1441

14-202.3 Contract Price and Rate Limitations ..................................... 1441

14-202.4 Costs to be included in Progress Payment Requests............. 1443

14-203 Audit Responsibility - Progress Payments ............................................. 1443

14-204 Audit Scope - Progress Payments .......................................................... 1444

14-205 Areas for Audit Consideration ............................................................... 1445

14-206 Reports ................................................................................................... 1450

14-207 Interest – Progress Payments ................................................................. 1451

14-300 Section 3 --- Assessing A Contractor's Financial Capability
14-301 Introduction............................................................................................ 1452

14-302 Responsibilities ...................................................................................... 1454

14-303 Financial Capability Detailed Risk Assessment Procedures................ 1455

14-304 Audit of Contractor Financial Capability............................................... 1461