Board of Director Minutes
Agency Authority[1]
[g] Defective Pricing Audits[2]
Contractors are required to submit cost or pricing data if a contract (or a contract modification) exceeds $2M. Audits to detect defective pricing are performed to assess the validity of the contractor's cost or pricing data. When such audits are conducted, a number of approaches are used to uncover incomplete or outdated cost or pricing data. These include:
(1) reviewing minutes of board of directors meetings or correspondence concerning capital expenditures; (2) reviewing contractor newsletters announcing new or improved manufacturing processes or the purchase of new machinery that will reduce production costs.
Related Topics/Links
Corporate Family[3] Corporations and disclosures go beyond the legal entity holding the contract. Algese 2 SCARL v. United States, No. 15-1279C (Fed. Cl. March 14, 2016),
