How will Defense Contracting Audit Reform Evolve?

Summary of Testimony at the House Armed Services Subcommittee Meeting on April 6, 2017: Evaluating the Defense Contract Auditing Process

Earlier this month, members of the House Armed Services Subcommittee on Oversight and Investigations conducted a panel hearing to evaluate the defense contract auditing process. The subcommittee Chairwoman Vicky Hartzler acknowledged economic burdens caused by defense contracting audit delays and the need for a fair, efficient and timely auditing process. The committee also sought insight from the panelists about privatizing part of the auditing process.

The theme of the hearing centered around evaluation of the Defense Contract Audit Agency (DCAA) auditing process, the backlog of DCAA incurred cost audits, the potential use of third party private auditors and several recommendations for DCAA audit improvement. Chairwoman Hartzler and subcommittee members heard testimony from DCAA Director, Anita Bales and representatives from several defense industry organizations. In addition to Ms. Bales, other panelists included David Berteau, President of the Professional Services Council (PSC); John Panetta, National Secretary of Financial Executives International (FEI) and James Thomas, Assistant Vice President of Policy for the National Defense Industrial Association (NDAA).

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Bill Walter, Managing Director | Government Contract Advisory Services
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