DOT Does Not Fully Comply With Revised FAR on Use, Management of Cost-Reimbursement Awards

by Sabrina I. Pacifici on August 20, 2013

DOT IG – DOT Does Not Fully Comply With Revised Federal Acquisition Regulations on the Use and Management of Cost-Reimbursement Awards. August 05, 2013. Project ID: ZA-2013-118

“On August 5, 2013, we issued our report on the Department of Transportation’s (DOT) compliance with revised requirements in the Federal Acquisition Regulation (FAR) regarding the use and management of cost-reimbursement awards. Our audit found that the six DOT Operating Administrations we reviewed do not fully comply with revised FAR requirements on the use and management of cost-reimbursement awards. Specifically, we found that the Operating Administrations do not (1) fully comply with the revised FAR requirements related to acquisition planning and documenting justifications or (2) consistently assess oversight risks, properly designate oversight personnel, or verify that contractors’ accounting systems are adequate to provide valid and reliable cost data. The Operating Administrations’ noncompliance is primarily attributable to the Department’s lack of internal guidance for implementing these new requirements and lack of oversight needed to verify department-wide compliance.”

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