Carolina Branch Office achieves full sustention and saves over $2.9 million

Carolina Branch Office achieves full sustention and saves over $2.9 million

By DCAA Staff Writer

The Carolina Branch Office audit team identified $2.9 million in recommended price adjustments related to a subcontractor's defective pricing in certified cost or pricing data submitted under a contract award for processing TRICARE claims. Their dedication and support to the buying command persisted after the audit report issuance and throughout negotiations, leading to a full sustention of the recommended price adjustment plus applied interest. Recently, the buying command and the prime contractor finalized an agreement, reducing the prime contract price by $5.9 million, including principal and interest, due to both prime and subcontractor defective pricing. DCAA's Carolina Branch Office recommended a price adjustment and sustained $2.9 million in subcontractor cost reductions, including interest, out of the $5.9 million overall prime contract reduction, achieving a 100 percent sustention rate of the recommended price adjustment.

The team's exceptional collaboration with the buying command played a key role securing millions in savings, reflecting their commitment to protecting taxpayer interests and ensuring the integrity of defense contracting processes to ensure the Warfighter has what they need to complete their mission. Beyond the audit report issuance, the team provided critical support to the Contracting Officer during negotiations including attending post-negotiation meetings. They delivered a formal DCAA written response and analysis to address the contractor's comments and certified offset proposal. These responses were vital in helping the buying command fully sustain the recommended price adjustment.

Additionally, the team helped calculate interest on the defective pricing claim while ensuring the accuracy and completeness of the final settlement. Over the course of four years, the team remained vigilant to details, proactive in planning, and worked together to resolve the defective pricing issues and save millions.