Hampton Roads Branch Office Supports Space Force Through Complex Termination Audits

Hampton Roads Branch Office Supports Space Force Through Complex Termination Audits

By DCAA Staff Writer

The Hampton Roads Branch recently completed two complex termination audits supporting the United States Space Force Launch Delta 45 involving base operations support on Ascension Island.

The audit team evaluated more than $39 million in proposed termination settlement costs and identified $10.9 million in questioned costs through detailed application of Federal Acquisition Regulation and contract requirements. As a result of the team's findings, the financial outcome shifted from a proposed $9.2 million contractor payout to a $926,000 overpayment owed back to the government.

The audits presented significant challenges due to the remote overseas location of the work and a system breach that prevented the contractor from providing original source timesheets and competitive vendor quotes. To address these limitations, the Hampton Roads VA Branch developed alternative audit procedures using remote personnel hiring records, labor reports, and bank statements to evaluate claimed costs and maintain audit progress.

The effort also demonstrated strong collaboration across the agency. The Hampton Roads Branch office took on the audits to support the Melbourne Branch office and ensure mission continuity. Audit reports were delivered to the Space Force well in advance of an Alternative Dispute Resolution session, providing the buying command additional time and leverage during settlement negotiations.

Following delivery of the reports, the customer requested continued DCAA advisory support during upcoming negotiations, reinforcing the value of DCAA's audit expertise in protecting taxpayer resources and supporting the Department of War mission.