Pentagon Contract Auditors Assert More Authority

By Amy Butler
Source: Aviation Week & Space Technology
October 14, 2013

F-35 engine-maker Pratt & Whitney is the latest Pentagon contractor to attract the scrutiny of contracts auditors, who seem to be using sharper teeth in demanding that companies follow the department's exacting auditing standards.

The Defense Contract Management Agency found that Pratt fell short in adhering to auditing standards, so it is withholding 5% of the company's billings on key F-35 contracts until a fix has been implemented. DCMA imposed the penalty after an April audit of compliance with the Pentagon's Earned Value Management System (EVMS) by the company, which is owned by United Technologies. EVMS is the system by which the Pentagon tracks cost, schedule and performance of programs at contractors' facilities.

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