Aero San Diego auditors play critical role in $12.5 million settlement

Aero San Diego auditors play critical role in $12.5 million settlement

By DCAA Staff Writer

DCAA's Aero San Diego Branch audit team was pivotal in securing a $12.5 million settlement from a major contractor, resolving a complex Cost Accounting Standard (CAS) noncompliance case that spanned 19 years. The issue originated with a 2007 audit that found the contractor had improperly excluded unallowable rent costs from its General and Administrative expense base. This led to a lengthy legal battle after the contractor appealed a final determination in 2018.

Throughout the extended proceedings, the Aero San Diego Branch provided crucial support. The team overcame significant obstacles, including limited contact from the contractor, by performing independent work and complex calculations. Faced with the retirements of the original lead auditor and lawyers from both DCAA and DCMA, the audit team ensured seamless knowledge transfers, mastering intricate details to maintain case continuity and empower the new legal team.

This successful resolution, culminating in a multi-year collaborative effort, highlights the team's commitment to excellence. The $12.5 million settlement not only protects taxpayer interests but also serves as a powerful testament to the perseverance and expertise of the DCAA audit team in upholding government contracting standards.