McKinney Branch Office identifies $74 million in non-compliant costs

McKinney Branch Office identifies $74 million in non-compliant costs

By DCAA Staff Writer

The McKinney Branch Office team recently completed a $2 billion pricing proposal and identified $74 million in non-compliant costs. During their review, the team identified inconsistencies in the contractor's purchase order history, inflated non-recurring expenses, and excessive material allowances. They attended the buying command's peer review and uncovered critical gaps in the cost and price analysis used to evaluate the contractor's pricing. As a result of DCAA's support, the contractor is required to provide additional documentation on vendor purchase prices.

Auditors Ms. Bryce Corbett, Mr. Eric Damewood, Ms. Briana Powell, Ms. Dani Silva, Mr. Daniel Thu and Mr. Devon Wiesmann worked with Supervisory Auditor Ms. Kirsty Bishop to coordinate the work. The audit team employed innovative systems, like ProPricer, to access the contractor's estimating system. They also started supporting the buying command six months before the proposal submission to ensure comprehensive help throughout the audit lifecycle. By taking the initiative and using innovative technology, the team streamlined their analysis and delivered excellent and timely results. Bishop explained, "Using ProPricer helped us quickly incorporate the Government's position on the contractor's rates and integrate questioned costs to arrive at an accurate negotiation position for the customer." The buying command expressed their gratitude for the audit team's thorough work and assistance throughout the entire process.