Sec. 893. IMPROVED AUDITING OF CONTRACTS
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## SEC. 893 IMPROVED AUDITING OF CONTRACTS **[**[10 U.S.C. 2313 note](/us/usc/t10/s2313)**]** ###
(a)Prohibition on Performance of Non-defense Audits by DCAA ####
(1)In general Effective on the date of the enactment of this Act, except as provided in paragraph (2), the Defense Contract Audit Agency may not provide audit support for non-Defense Agencies unless the Secretary of Defense certifies that the backlog for incurred cost audits is less than 18 months of incurred cost inventory. ####
(2)Exception for national nuclear security administration Notwithstanding paragraph (1), the Defense Contract Audit Agency may provide audit support on a reimbursable basis for the National Nuclear Security Administration. ###
(b)Amendments to Defense Contract Audit Agency Annual Report Section 2313a(a) of title 10, United States Code, is amended— ####
(1)in paragraph (2), by amending subparagraph
(D)to read as follows: > > ##### “(D) > > the total costs of sustained or recovered costs both as a total number and as a percentage of questioned costs; and” > ; ####
(2)in paragraph (3), by striking “; and” and inserting a semicolon; ####
(3)by redesignating paragraph
(4)as paragraph (5); and ####
(4)by inserting after paragraph
(3)the following new paragraph: > > #### “(4) > > a description of outreach actions toward industry to promote more effective use of audit resources; and” > . ###
(c)Review of Acquisition Oversight and Audits ####
(1)Review Required The Secretary of Defense shall review the oversight and audit structure of the Department of Defense with the goals of— #####
(A)enhancing the productivity of oversight and program and contract auditing to avoid duplicative audits; and #####
(B)streamlining of oversight reviews. ####
(2)Recommendations The Secretary shall ensure streamlined oversight reviews and avoidance of duplicative audits and make recommendations in the report required under paragraph
(3)for any necessary changes in law. ####
(3)Report #####
(A)Not later than one year after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report on actions taken to avoid duplicative audits and streamline oversight reviews. #####
(B)The report required under this paragraph shall include the following elements: ######
(i)A description of actions taken to avoid duplicative audits and streamline oversight reviews based on the review conducted under paragraph (1). ######
(ii)A comparison of commercial industry accounting practices, including requirements under the Sarbanes-Oxley Act of 2002 (Public Law 107-204; 15 U.S.C. 7201 et seq.), with the cost accounting standards prescribed under chapter 15 of title 41, United States Code, to determine if some portions of cost accounting standards compliance can be met through such practices or requirements. ######
(iii)A description of standards of materiality used by the Defense Contract Audit Agency and the Inspector General of the Department of Defense for defense contract audits. ######
(iv)An estimate of average delay and range of delays in contract awards due to the time necessary for the Defense Contract Audit Agency to complete pre-award audits. ######
(v)The total costs of sustained or recovered costs both as a total number and as a percentage of questioned costs. ###
(d)Incurred Cost Inventory Defined In this section, the term “incurred cost inventory” means the level of contractor incurred cost proposals in inventory from prior fiscal years that are currently being audited by the Defense Contract Audit Agency.
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- Pub. L. 107-204
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