Resolving Old Audit Issues

On October 29, DCMA and DCAA announced a joint initiative to "disposition" approximately 400 "reportable audits" and 300 Form 1s that are awaiting ACO action. Based on our experience, many of these unresolved audits and Form 1s are likely to raise issues that the ACO and the DCMA lawyers recognize to be without merit, but that the ACO has been unwilling to close because the ACO cannot or will not try to obtain approval to reject the DCAA position by going through the DCMA Board of Review process, so this initiative is likely to result either in the issuance of a large number of non-meritorious final decisions or politically dangerous decisions to overrule the DCAA audit position -- and bad final decisions may be more likely as a practical matter than disagreeing publicly with the auditors.