OIG: Army Needs Better Processes to Justify and Manage Cost-Reimbursement Contracts

Of the 161 contracts reviewed, valued at about $53.3 billion, Army contracting personnel at four sites did not consistently implement the interim rule for 107 contracts, valued at about $10.5 billion. Contracting personnel issued contracts that did not follow the interim rule because they were unaware of the rule. As a result, contracting personnel may increase the contracting risk because costreimbursement contracts provide less incentive for contractors to control costs. OIG identified internal control weaknesses for implementing the interim rule changes regarding the use of costreimbursement contracts. Report.