How very interesting. It isn’t too hard to figure out who the likely contractor is that is referred to in this story, due to the location. More importantly, there are other instances of similar alleged corruption, fraud, etc. with feds and a contractor in another state. This kind of thing appears to have sprung up in multiple places at various levels in our industry/government contracting structure. I thank the GAO and it’s investigators who are trying to continue to do the right thing, and any other auditors or oversight inspectors who also, in spite of undue pressure and duress are trying to continue to meet their missions and do their jobs in an ethical and responsible manner. We need to support these people! And we need to insist, loudly if necessary, that the illegal, unethical and criminal activities committed by industry or government employees or supervisors are stopped. -GFS
Wednesday 23 July 2008
by: Dana Hedgpeth, The Washington Post
A GAO report found that the Defense Contract Audit Agency, which oversees contractors for the Defense Department, made an upfront agreement with”a major aerospace company” to limit the scope of an audit. (Photo: EML Associates)
Auditors at an oversight agency of the Pentagon were pressured by supervisors to skew their reports on a major defense contractor’s work, hiding wrongdoing and charges of overbilling, according to an 80-page report from the Government Accountability Office.
The Defense Contract Audit Agency, which is charged with overseeing contractors for the Defense Department, made an upfront agreement with “a major aerospace company” to limit the scope of work and basis for an audit, the report said.
When the contractor, who is not named in the report, objected to the draft findings of the DCAA audit, managers at the audit agency assigned a new supervisor to the case and threatened the senior auditor with personnel action if “he did not delete findings from the report and change the draft audit opinion to adequate,” according to the GAO report.
Supervisors at DCAA attempted to intimidate auditors, prevented them from speaking with GAO investigators and created a “generally abusive work environment,” the report said.
GAO said it launched the investigation on its own after receiving complaints on a hotline about 14 DCAA audits. It conducted more than 100 interviews of more than 50 people involved in the audits at two DCAA locations in California. The report details three of the audits the GAO looked into but does not name any of the contractors.
Chris Isleib, a spokesman at the Pentagon, said he did not have a comment at this time