United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office National Security and International Affairs Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1993-10-25 monographic deposited born digital GA 1.13:NSIAD-94-7 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-94-7 P0b002ee18039bb4d f:ns94007 DGPO 2010-08-12 2011-03-24 GAOREPORTS-NSIAD-94-7 machine generated eng fdlp REPORT GAOREPORTS-NSIAD-94-7 NSIAD-94-7 Contract costs Department of Defense contractors Defense procurement Auditing procedures Internal audits Internal controls Overpayments Interest rates Fines (penalties) Claims settlement Chapter Report NSIAD The Defense Department (DOD) has not recovered most of the defective pricing uncovered by audits mainly because contracting officers (1) dismiss audits for errors, inconclusive evidence, and lack of reliance on the defective data during negotiations and (2) negotiate with contractors and settle for lesser amounts. In addition, interest on overpayments has not been fully charged in all instances, and the penalties have not been assessed. Further, settlements of defective pricing cases were late, involving a lengthy process with administrative burdens on both the government and contractors. DOD's tracking and reporting system was inaccurate, and it lacked information needed for oversight and management of the settlement process. These conditions diminish the deterrence needed to ensure that contractors and subcontractors comply with the law. Without adequate deterrence, contractors have little incentive to eliminate inflated price estimates and correct systemic pricing problems. In addition, the costly and burdensome process of identifying and settling defective pricing by the government and contractors will likely continue. https://www.govinfo.gov/content/pkg/GAOREPORTS-NSIAD-94-7/html/GAOREPORTS-NSIAD-94-7.htm GAO/NSIAD-94-7 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-94-7 Chapter Report GAO/NSIAD-94-7; Contract Pricing: DOD's Use of the Truth in Negotiations Act Deterrents Could Be Increased; Contract costs Department of Defense contractors Defense procurement Auditing procedures Internal audits Internal controls Overpayments Interest rates Fines (penalties) Claims settlement