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Nicole Owren-Wiest Discusses Plan to Reduce DCAA Backlog by Raising Threshold

Bloomberg BNA’s Federal Contracts Report
September 14, 2016

Nicole J. Owren-Wiest, a partner in Wiley Rein’s Government Contracts Practice, was quoted in Bloomberg BNA’s coverage of a proposed change to the Federal Acquisition Regulation that would raise the threshold for the audit of prime contract settlement proposals and subcontract settlements. The change would raise the threshold from $100,000 to $750,000, in an effort to alleviate the Defense Contract Audit Agency’s (DCAA) backlog.

Raising the threshold to match the criterion for certified pricing data should be well received within the contracting community, Ms. Owren-Wiest told BNA’s Federal Contracts Report. “It’s a logical move to reduce and help minimize the DCAA backlog, which has been a perennial problem,” she said. “Contractors should find this to be a welcome change as well.”

Ms. Owren-Wiest added that the proposal is consistent with congressional efforts to reduce and minimize the backlog. “By focusing on higher-value matters and higher-risk matters, i.e., above $750,000, it’s going to be a better use of DCAA’s audit resources and taxpayer dollars,” she said.