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<classification authority="sudocs">GA 1.13:GAO-06-1132</classification>
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 <subject>Contract administration</subject>
 <subject>Contract costs</subject>
 <subject>Cost analysis</subject>
 <subject>Defense audits</subject>
 <subject>Defense cost control</subject>
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<titleInfo>
 <title>Iraq Contract Costs: DOD Consideration of Defense Contract Audit Agency&apos;s Findings</title>
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<abstract>The government has hired private contractors to provide billions
of dollars worth of goods and services to support U.S. efforts in
Iraq. Faced with the uncertainty as to the full extent of	 
rebuilding Iraq, the government authorized contractors to begin  
work before key terms and conditions were defined. This approach 
allows the government to initiate needed work quickly, but can	 
result in additional costs and risks being imposed on the	 
government. Helping to oversee their work is the Defense Contract
Audit Agency (DCAA), which examined many Iraq contracts and	 
identified costs they consider to be questioned or unsupported.  
The Conference Report on the National Defense Authorization Act  
for Fiscal Year 2006 directed GAO to report on audit findings	 
regarding contracts in Iraq and Afghanistan. As agreed with the  
congressional defense committees, GAO focused on Iraq contract	 
audit findings and determined (1) the costs identified by DCAA as
questioned or unsupported; and (2) what actions DOD has taken to 
address DCAA audit findings, including the extent funds were	 
withheld from contractors. To identify DOD actions in response to
the audit findings, GAO selected 18 audit reports representing	 
about 50 percent of DCAA&apos;s questioned and unsupported costs on	 
Iraq contracts. GAO requested comments from DOD on a draft of	 
this report, but none were provided.</abstract>
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 <topic>Contract costs</topic>
 <topic>Cost analysis</topic>
 <topic>Defense audits</topic>
 <topic>Defense cost control</topic>
 <topic>Defense procurement</topic>
 <topic>Federal regulations</topic>
 <topic>Financial analysis</topic>
 <topic>Questionable payments</topic>
 <topic>Risk assessment</topic>
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