When contract auditors questions a particular cost in a contractor proposal or claim they are just doing their jobs. It happens day in and day out, all across the country. Auditors report their findings to contracting officers, contracting officers agree (usually) and the Government doesn’t pay the expense. The Government conservatively estimates that it recovers $5.70 for every dollar it spends on contract auditing.
The Federal Government does a pretty good job of meeting its small and disadvantaged subcontracting goals.