A recent hearing before the Commission on Wartime Contracting uncovered a disconnect between the two top defense contract oversight groups: DCAA and DCMA. While DCAA audits contractor business systems such as invoicing, payroll, and accounting, DCMA is the organization "calling the shots." It implements corrective actions or consequences for contractors that don't pass audit. It has the power, for example, to withold payments from deviant contractors.

Oddly, many of the recommendations that DCAA makes after finishing an audit are ignored by DCMA staff. Thus, many contractor systems that aren't up to snuff are still in use--a contractor only need submit a "corrective action plan" to avoid any payment witholds from DCMA. Contractors at the hearing said that they try to play by the rules, but that "a single voice from the govnernment" would be a great improvement. Regulations say one thing, DCAA says another, and DCMA has yet another take.

The CWC asked that DCMA report back in 60 days on how to improve the synchronization between DCAA and DCMA to ensure that contractor business systems are held accountable.