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Department of Defense

Mandate Technical Audits on Defense Contracts

Every day, government contracts are negotiated at far higher costs than they need to be. If requested, DCMA provides a report to the buying activity (Army, Navy etc.) called a Technical Support to Negotiations (TSN). A TSN identifies areas where contracts are overstated by the defense contractor. The author of the TSN, the DCMA Engineer, knows the "in's and out's" of the contractor's facility and can potentially save thousands or even millions in one single contract.

 

My idea is to mandate the TSN report and the use of DCMA or a similar in house agency to perform these audits so that tax dollars aren't wasted. Currently many production contracts are not audited at all and sole source companies can overstate their contract proposals significantly, sometimes fraudulently. The audits performed in our agency generally recommend anywhere between 5% and 15% of reductions to contract proposals, sometimes up to 50%. On a 200 million dollar contract that is an average savings of 30 million dollars. The activity negotiating these contracts do not have the expertise to negotiate against a giant defense contractor. These people are highly trained in law and in negotiations.

 

The TSN gives the buying activity the power to fight for a fair price. In lieu of our economic crisis, PLEASE consider my idea.

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Idea No. 13907