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Feb 10, 2011


jim voigt

Would love to see POGO look into the Medicare Payment Advisory Group's (MEDPAC) report to the Congress in June, 2010, recommendation for Medicare to hold back $3.5 billion in payments to teaching hospitals, until they can justify receiving this amount. This is found on page 103 of their report, Aligning Incentives in Medicare. They have been recommending for years to have the Indirect Payment Amount reviewed due to their empirical study that indicated the payment was twice as high as it should be. Congress never acts on this and it is obvious to many in the Medicare field of auditing that this is a clear overpayment.

SoCal Contractor


Well, I'm working through a billing system review right now, so I don't know how out of touch I am. That said, I'm not a fan of DCMA either. Nobody over there can make a decision without four or eight "Board Reviews".


I'm flattered that you think my microblog is of any interest. Feel free to send me a response to my blog comments. I promise to publish your response unedited.

Yes good news in deed

These idiots took a year to review our contract then insisted we jack our rates up 300% so our client could not afford us. We offered fixed price and they insisted on Cost plus. These are the worst of all government employees!! Finally the waste gets taken out.


I am also angry that Fitzgerald so willingly gave away audits to DCMA. POGO, thank you for exposing the real Fitzgerald, he'll do anything for Shay Assad regardless of whether it is in the best interest of DCAA. DCAA employees no longer have the spirit we once had in the "save the Agency days." The backlog is growing. Contracts are awarded without audits. We cancel more assignments than we complete. We are not performing the right assignments to protect the taxpayers dollars. We have a Director that would rather we issue one perfect audit with no findings than many not so perfect audits with significant findings. The world of DCAA is so twisted that employees do not know what to think. Fitzgerald has no appreciation of the need for DCAA to react quickly to proposals and issue audits BEFORE the contract is awarded. Not to mention the need to close contracts by working on the backlog of incurred cost. Contractors have never had it so good. I bet PSC, NCMA, AIA or some other industry group gives Fitzgerald an award similar to the award Charlie Williams received last year - better known as the "thank you for letting us make more profit than we ever dreamed of award."


First Fitzgerald raises the threshold on proposal audits and then no financial capability or purchasing system audits. What's next; increasing the threshold for desk review incurred cost audits from $15 million to $100 million. Fitzgerald states that in his time as DCAA Director, it has been about quality not quantity. I say it has been about an agency that is too paralyzed to issue a report. Fitzgerald you are right about the a huge reduction in the quantity of audits. But this also means a significant reduction in the oversight of contractors and of net savings. My office cancels more assignments that we issue because the RAM will not approve a report unless he has had it at least 6 months and most of the time, it is of no use when he approves it. He would rather cancel an audit than risk getting gigged by the quality audit police. Fitzgerald, open those "fresh eyes," the agency is going down the tubes and no amount of interviews saying DCAA is doing better will make DCAA better. The fact is that contractors are receiving fewer audits and as a result, taxpayers dollars are at greater risk of overpayments. Great legacy to leave on DCAA Fitzgerald!!


Social contractor - you are out of touch. In my region, we have not completed an ICAPS (internal control audit) since the summer 2009 when GAO issued the draft report concluding that all sampled ICPAS reports did not comply with the auditing standards. The only evaluation of contractor purchasing systems by DCAA in my region have been the audits to DCMA's purchasing system review. It has been a long time since DCMA disapproved a contractor purchasing system based on a DCAA ICAPS audit. POGO, thank you for the post. It is about time that DPAP gets exposed for weakening DCAA.


DCAA financial capability audits are in my opinion the most useless audits DCAA performed. If GE,GD or any other big DoD contractor went belly up (which they never would with the Gov't free cash flow) the Gov't would bail them out. For smaller DoD contractors why perform countless financial capabilty audits on a think tank business that writes reports or computer software? Where is the risk to the governement? If the owner dies he can't bill anymore and DoD will not get the software they don't need or the report no one will read. DCAA has many bigger issues than doing non value added financial capability audits. Incurred cost audits are where DCAA is missing the ball.

Nick Schwellenbach

Dearest Nick Sanders,

I'm flattered by the great deal of attention you've lavished on some of my recent work.

Nick Schwellenbach

SoCal Contractor

I'm impressed by the headline and sloganeering and reliance on biased sources, Nick.

I'm less impressed by the actual content of the article, which is both misinformed and wrong-headed.

First, you need to understand that DCAA's financial capability audits were not performed with any more diligence than any other audit it performed. That's why DCAA gave Enron a passing grade just months before its collapse in scandal.

Second, you obviously don't understand the difference between a DCAA review of internal controls related to a contractor purchasing system, and a DCMA functional specialist review of, you know, the actual purchasing files for compliance with applicable laws, regulations, and contract flow-down requirements.

Nice try, though.

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