Audit of Proposed Fiscal
Year 2004 Direct Labor Rates
February 2004
Reference
Number: 2004-1C-051
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.
February 20, 2004
MEMORANDUM FOR DAVID A. GRANT
DIRECTOR OF PROCUREMENT
INTERNAL REVENUE SERVICE
FROM: Daniel R. Devlin /s/ Daniel R. Devlin
Assistant Inspector General
for Audit (Headquarters Operations and
Exempt Organizations Programs)
SUBJECT: Audit of Proposed Fiscal Year 2004 Direct
Labor Rates (Audit #20041C0220)
The
Defense Contract Audit Agency (DCAA) examined the contractor Civil Division’s
proposed Forward Pricing Direct Labor Bid Rates dated October 31, 2003. The purpose of the examination was to
determine the reasonableness of the proposed forward pricing direct labor
rates.
The
DCAA opined that the contractor has submitted adequate cost or pricing
data. According to the DCAA, the
proposal was prepared in accordance with applicable Cost Accounting Standards
and appropriate provisions of the Federal Acquisition Regulation. Therefore, the DCAA considers the proposal
to be acceptable as a basis for negotiation of fair and reasonable forward
pricing direct labor rates.
The
information in this report should not be used for purposes other than those
intended without prior consultation with the Treasury Inspector General for Tax
Administration regarding their applicability.
If you have any questions, please
contact me at (202) 622-8500 or John R. Wright, Director, at (202) 927-7077.
Attachment
NOTICE:
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 U.S.C. § 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.
The TIGTA seal was removed due
to its size.