The prevention of fraud, waste and mismanagement in defense contracting

The US government's two agencies in charge of investigating defense contract fraud, the Defense Contract Audit Agency and the Inspector General's staff of the Department of Defense, have recently increased fraud detection efforts. Eight areas where audits or allegations of fraud are most likely to occur are: labor charging, defective pricing, improper overhead charging, spare parts pricing, gratuities, product substitution, employee conflict of interest, and progress billing. Techniques are discussed for preventing these problems from occurring within an organization.