This report has cleared the Treasury Inspector General for Tax Administration disclosure review process and information determined to be restricted from public release has been redacted from this document.

June 29, 2001

MEMORANDUM FOR DAVID A. GRANT

FROM: Pamela J. Gardiner /s/ Pamela J. Gardiner

SUBJECT: Rate Review of Proposal TIRNO-01-R-00004

In response to your request, the Defense Contract Audit Agency (DCAA) evaluated the direct labor rates, indirect rates, and escalation factors in the proposal dated April 2001. This report pertains only to the performance of agreed upon-procedures to evaluate direct labor rates, indirect labor rates, and escalation factors and does not reflect the results of an audit. Accordingly, the DCAA does not express an opinion on the adequacy and compliance of the submitted cost or pricing data.

In summary, the DCAA took no exception to the proposed direct labor rates, indirect rates, or escalation rates. Details of its observations are included in the attached report.

The information in this report should not be used for purposes other than that intended without prior consultation with the Treasury Inspector General for Tax Administration regarding its applicability.

If you have any questions, please contact me at (202) 622-6510 or Maurice S. Moody, Assistant Inspector General for Audit (Headquarters Operations and Exempt Organizations Programs), at (202) 622-8500.

Attachment

The Office of Inspector General for Tax Administration has no objection to the release of this report, at the discretion of the contracting officer, to duly authorized representatives of the contractor.

The contractor information contained in this report is proprietary information. The restrictions of 18 USC 1905 must be followed in releasing any information to the public.

This report may not be released without the approval of this office, except to an agency requesting the report for use in negotiating or administering a contract with the contractor.