San Diego Branch Office questions $6.7 million in complex construction claim audit

San Diego Branch Office questions $6.7 million in complex construction claim audit

By DCAA Staff Writer

The San Diego Branch Office recently completed a complex series of prime and subcontractor claim audits on a firm-fixed-price construction contract. The team questioned $6.7 million of the $9.5 million in claimed costs, identifying significant potential savings for the government.

Led by supervisory auditors Michell Karidis and Akio Takahashi, auditors Rocio Roman, Veronica Joseph, Vanessa Sebes, Jessica Goetschel, Marc San Diego, and Inna Wilson, the team faced numerous challenges during the audit due to the contractor's inexperience with government contracting. These included limited staffing, a complex accounting system, and inadequate record-keeping. Poorly documented claims, unclear cost separation between base contract work and changes, and non-compliant indirect rate development added to the audit's complexity.

The team overcame these challenges through perseverance and collaboration, working closely with the US Army Corps of Engineers and legal counsel to ensure a thorough and well-documented audit. They also coordinated with other DCAA offices and technical specialists to address Business and Proposal cost concerns and resolved the challenge of analyzing nine separately submitted interrelated certified claims.

The team's expertise played a significant role in successfully navigating all the complexities of the audit, resulting in millions of potential savings and ensuring accountability in government contracting.