OIG: DoD Needs to Improve Processes for Issuing and Managing Cost-Reimbursement Contracts

Of the 604 contracts reviewed, valued at about $82.7 billion, contracting personnel did not consistently implement the FAR revisions, (the interim rule), for 411 contracts, valued at about $31.7 billion. Contracting personnel issued contracts that did not follow the interim rule because they were not clear about interim rule requirements or were unaware of the interim rule. As a result, contracting personnel continue to issue cost-reimbursement contracts that may increase DoD’s contracting risks because cost-reimbursement contracts provide less incentive for contractors to control costs. Report.