DOD Contract Management: Greater Attention Needed to Identify and Recover Overpayments
Abstract
In the 5 years between fiscal year 1994 and1998, defense contractors returned about $4.6 billion to the Columbus Center--in fiscal year 1998, $746 million. The Center attributes most of the returned money to overpayments caused by factors outside its control. However, payment errors by the Center were also a factor. It took about a year, on average, before the 13 contractors refunded overpayments of $56.2 million to the Center. In addition, four of the contractors were still retaining overpayments totaling $1.1 million. After we brought these overpayments to the contractors' and the government's attention, the contractors refunded the overpayments. A Defense Contract Management Command area office also instructed its personnel to ask contractors reporting overpayments to immediately return the money. In some cases, government personnel were aware of overpayments, but they did not take timely action to obtain recovery. Under current law, there is no requirement for contractors who have been overpaid to notify the government of overpayments or to return overpayments prior to the government issuing a demand letter.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jul 19, 1999
- Accession Number
- AD1167433
Entities
People
- Charles W. Thompson
- David E. Cooper
- Kenneth Roberts
- Odi Cuero
Organizations
- United States Government Accountability Office