Sec. 405. Audit of Department of Defense by private entity

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Congress finds the following: Section 1003(a)(2)(A)(ii) of the National Defense Authorization Act for Fiscal Year 2010 ( Public Law 111–84 ; 10 U.S.C. 2222 note) requires that the financial statements of the Department of Defense be validated as ready for audit by September 30, 2017. Section 1003(a) of the National Defense Authorization Act for Fiscal Year 2014 ( Public Law 113–66 ; 127 Stat. 842; 10 U.S.C. 2222 note) requires that, upon the conclusion of fiscal year 2018, the Secretary of Defense shall ensure that a full audit is performed on the financial statements of the Department of Defense for such fiscal year and submit to Congress the results of that audit by not later than March 31, 2019.

The Secretary of Defense shall award a contract to a highly credentialed independent external auditor to perform an audit of the financial statements of the Department of Defense for fiscal year 2018. Such audit shall be in addition to the audit required to be performed by the Secretary of Defense on such financial statements for that fiscal year. The contract awarded under paragraph

(1)shall require the auditor to complete the audit and submit to Congress a report on the results of the audit within 365 days after award of the contract. The contract also shall provide for payment to the auditor of 1 percent of any amounts identified by the auditor as potential savings upon achievement of such savings, if achievement of such savings occurs within 1 year after completion of the audit. The contract awarded under paragraph

(1)shall ensure that the audit is carried out consistent with and subject to any national security protections applicable under law or regulation.

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U.S. Code