Defective Pricing Audits Likely to Increase; Pentagon Also Signals More Scrutiny of Contractors Who Refuse to Provide “Other than Certified Cost or Pricing Data”

Smith Pachter McWhorter – Near the end of 2020, the Office of the Under Secretary of Defense (“OUSD”) published two memoranda regarding (1) creation of a new defective pricing audit team within DCMA and (2)  DOD’s need to gather data on contractors who refuse to provide “other than certified cost or pricing data.” The memoranda are available at: DCMA Defective Pricing Team and Reporting of Contractor Denials of Request for Data Other than Certified Cost or Pricing Data.