TOPICS
TOPICS
Defense taps independent panel to examine contracting agency
The Defense Department has asked the Defense Business Board, an independent panel of corporate executives, to examine the overall performance of the Defense Contract Audit Agency and report its findings within 60 days.
The request follows a highly critical Government Accountability Office report released in July that documented improper management practices at the agency charged with overseeing Defense contracts worth billions of dollars.
The GAO investigation, which stemmed from complaints to a fraud hot line, substantiated charges that supervisors intimidated auditors, maintained improper relationships with contractors and failed to follow generally accepted government auditing standards.
"Contractor officials and the DoD contracting community improperly influenced the audit scope, conclusions and opinions of some audits -- a serious independence issue," GAO reported.
Danielle Brian, executive director of the Project on Government Oversight, questioned how meaningful the Defense Business Board review will be: "Of course it's important to hold the DCAA accountable, but the reality is, it was still the most independent entity in DoD. Now we have a group of defense industry people advising how to 'fix' the DCAA."
"I fear the cure will be much worse than the illness," Brian added.
The Defense Business Board was established in 2001 by then-Secretary Donald Rumsfeld to help bring private sector business acumen to department operations. The board's charter is to provide independent advice to the Defense secretary aimed at improving organizational efficiency and effectiveness.
The 21-member board is chaired by Michael J. Bayer, president and chief executive officer of the Washington-based consulting firm Dumbarton Strategies. Bayer is also a member of the Sandia National Laboratory's National Security Advisory Panel, the Defense Science Board and the Chief of Naval Operations Executive Panel.
COMMENTS
- So the Defense Business Board, an independent panel of corporate executives, will examine the overall performance of the Defense Contract Audit Agency and report its findings within 60 days. I need to make sure that I understand this. DCAA management has been forcing its government employees to rewrite reports on contract performance to show that they have performed favorably. So a panel of corporate executives will audit the government in their review of DCAA? Could it be that these executives represent the same companies that received the doctored reports on their own company's performance? Who is checking to make sure that they are not skewing their reports? Perhaps the members of the Defense Business Board report directly to their company's CEOs. I think that we have reached the endgame, the government no longer represents its citizens but works directly for contractors. The President and his MBA administration has accomplished much in the past few years. Sally Witherspoon Posted August 18, 2008 10:39 PM
- Having worked for DCAA for decades, I have witnessed the destruction of a once effective and proud Agency. For a variety of reasons (preoccupation with metrics, promotion of people not based on ability, and others factors well known to the DCAA family) the Agency has become dysfunctional and basically inept. Mr Reed, the prior Director had the idea that all auditors are capable of performing any audit. In reality, that was never the case. However, Mr. Reed constructed his Agency along those lines. Mr. Reed never permitted a dissenting voice. I attended meetings where such visionary ideas were raised. In every instance, Mr. Reed reacted with such a distinct negativism that no sane person would feel comfortable raising the issue again. What should have been done was to construct an Agency with experts in certain areas. An effective manager recognizes each person has unique abilities and manages accordingly. DCAA policy over the past years has forced most competent auditor to leave. DCAA is left with a bevy of inexperienced and untrained auditors who are required to perform many audit beyond their abilities. In DCAA ability is rarely an attribute. The CPA, on the other hand, is beyond value. It apparently never occurred to Mr. Reed or his underlings that a CPA doesn't mean a person can audit. It does, however, look nice on the metric sheets! I doubt current DCAA management is capable of reconstructing the Agency to make it, once again, relevant. I think the best solution to the mess is to disolve the Agency. DOD shoud move audit activities such as cost proposals, FPRPs, and Incurred Cost under the DCMA unbrella. DOD should outsource system and CAS audits to organizations willing to invest in area experts. The hidden cost to the taxpayer of incompetent DCAA audits is staggering and has never been addressed. It would be interesting for someone to compute the amount of money contractors and DCMA spend responding to the numerous DCAA audits performed by untrained, inexperienced auditors, supervised by overworked supervisors, managed by FAO managers who report only to the Metrics. What a mess. Fred Posted August 14, 2008 1:53 PM
- I wish to thank Shelley for her insightful comment. Regardless of the amount of pressure they may have to face, front-line DCAA supervisors still need to behave in an ethical and professional manner. If the supervisor cannot stand the heat, then he or she should get out of the kitchen. Concerned Citizen Posted August 14, 2008 1:44 PM
