The Takeaways: GAO trashes DCAA (Updated)

A GAO report issued today found systemic problems in audit quality across the Defense Contract Audit Agency (DCAA).  The report criticized DCAA for "facilitating DOD contracting" while failing to protect the "public interest."  These findings are in addition to a July 2008 report citing "impaired independence" of DCAA auditors in dealing with the DOD and contractor community,  management intimidation of field auditors, as well as "shortcuts" taken by field audit offices.

The Takeaways: Given that the report found that "significant reform" at DCAA will be necessary and that DCAA's "management environment and quality assurance structure" are to blame, one wonders how secure Director April Stephenson's job is given Secretary Gates' penchant for replacing suspect leadership.

Update:  GovExec.com reported on the testimony today before the Senate Homeland Security and Government Affairs Committee by DCAA and GAO officials.   From the tone of the questioning, it appears that influential members of the Committee have reached a consensus on the question of whether Director Stephenson stays or goes.  Here are some choice quotes cited by GovExec:

"In the world of auditing, what has been happened[sic] here is a capital crime," said Sen. Claire McCaskill, D-Mo., a former state auditor for Missouri. "There can be no bigger indictment of an agency than this GAO report."

Sen. Susan Collins, R-Maine, called GAO's findings "an epic failure by the agency and the department," while Sen. Tom Coburn, R-Okla., said he "got sick" reading the report.

"I can't understand why the management of this agency hasn't been completely changed," Coburn said.
 ...
"At this point, DCAA audits are a joke," McCaskill said. "If someone is not fired over this, I don't think anyone should ever take this agency seriously again."

Deserved or not, this is the most pressure that GAO and HSGAC have brought to bear against an agency director that I can recall.  These heavy-handed tactics by the legislative branch against a Director in the Executive branch might even backfire if it weren't for the long record of documented incompetence at DCAA.  

Secretary Gates can't be happy with so much piling on by the members of Congress but in this case, he can only direct his anger at one individual:  April Stephenson.


See also a DODIG report (from August) echoing GAO's concerns here (also courtesy of GovExec).

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