Evaluation Report on the Defense Contract Audit Agency Audits of Major Contractor Labor Costs.

Abstract

The Defense Contract Audit Agency Contract Audit Manual Section 5-9O2a. explains that labor costs are generally the most significant costs charged to Government contracts and generally comprise the base, or the largest element in the base, used to allocate indirect costs. Estimates of labor costs for follow- on or similar item Government contracts are frequently based on historical labor costs. Labor differs from other cost items because it is not supported by third-party documentation such as an invoice, purchase order, or receipt. Contractor personnel have full control over the documents or devices of original entry, whether they consist of time cards, electronic media, or some other means. Accordingly, the risks associated with the accurate recording, distribution, and payment of labor are often significant.

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Document Details

Document Type
Technical Report
Publication Date
Feb 28, 1997
Accession Number
ADA373863

Entities

Organizations

  • Office of the Inspector General, U.S. Department of Defense

Tags

Communities of Interest

  • Human Systems

DTIC Thesaurus Topics

  • Accounting
  • Acquisition
  • Air Force
  • Auditing
  • Business Administration
  • Contractors
  • Contracts
  • Department Of Defense
  • Governments
  • Indirect Costs
  • Information Systems
  • National Security
  • Navy
  • Standards
  • Supervisors
  • Test And Evaluation
  • Training

Readers

  • Computer Science.
  • Government Contracting/Procurement.

Technology Areas

  • Microelectronics