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Review of the Food and Drug Administration's Contract Closeout Actions

As one of the largest contracting agencies in the Federal Government, HHS performed contracting actions (awards and modifications) totaling almost $24 billion in fiscal year 2016. Prior OIG work identified issues regarding contract closeout, which is required once the contracting officer receives evidence of receipt of property and final payment, or evidence of physical completion of the contract. The closeout process is generally the last chance to detect and recover improper contract payments, and delayed closeout poses a financial risk to agency funds. Also, the closeout process (1) ensures that goods and services were provided as intended, (2) validates final costs and payments, and (3) frees up excess funds for possible use elsewhere. We will determine whether the Food and Drug Administration (FDA) closed contracts in accordance with the Federal Acquisition Regulation and departmental guidance. We will also determine whether the FDA identified when contracts are eligible for closeout.

Announced or Revised Agency Title Component Report Number(s) Expected Issue Date (FY)
Jun-17 Food and Drug Administration Review of the Food and Drug Administration´┐Żs Contract Closeout Actions Office of Audit Services A-03-17-03001 2018