July 2017 - page 4

The Association of Certified Fraud Examiners (ACFE) reported the results of a recent study that revealed the typical organization loses a median of five percent of revenues annually. The same study found that while both large and small companies fall victim to occupational fraud, companies with fewer than 100 employees are particularly vulnerable compared to their larger counterparts. Why is this? Essentially because larger companies have better internal controls and more likely to have anti-fraud practices in place – such as hotlines, employee fraud training and internal audit departments.

Source: PNWC’s Government Contracting Update: Fraud in the Purchasing Department

Since 2011, the Defense Contract Audit Agency has published an annual report to Congress. This report was mandated by an earlier NDAA (National Defense Authorization Act) and codified in 10 USC 2313a(a)(2). We’ve reported on these reports about the time they were issued (see the latest discussion: DCAA’s Fiscal Year 2016 Report to Congress).

Source: PNWC’s Government Contracting Update: 2018 NDAA – Changes to DCAA’s Annual Report to Congress

Unless you’re a very large contractor, you may not have heard of “should-cost” reviews. Should-cost reviews are a specialized form of cost analysis. They differ from traditional evaluation methods in that they don’t assume that historical costs reflect efficient and economical operation. Instead, should-cost reviews evaluate the economy and efficiency of the contractor’s existing work force, methods, materials, equipment, real property, operating systems, and management.

Source: PNWC’s Government Contracting Update: Have Contractor’s Been Complaining About DCMA’s “Should-Cost” Reviews?