The Defense Contract Management Agency (DCMA) will institute a
new Defective Pricing Pilot Team, according to a September 30,
2020,
memo issued by Kim Herrington, Acting Principal Director of
Defense Pricing and Contracting at the Office of the Under
Secretary of Defense. The DCMA Defective Pricing Pilot Team will
assist Government Procuring Contract Officers (PCOs) in resolving
audits initiated by the Defense Contract Audit Agency (DCAA)
pursuant to the Truth in Negotiations Act.1
When a PCO receives notice of a DCAA audit dated after September
30, 2020, he or she may request assistance from DCMA in undertaking
functions set out in FAR 15.407-1(b), (d), and (e) –
determining and reporting whether certified cost or pricing data
submitted was in fact defective, concluding whether a contract
price reduction is appropriate, and determining the appropriate
contract price adjustment.
