Defense taps independent panel to examine contracting agency

The Defense Department has asked the Defense Business Board, an independent panel of corporate executives, to examine the overall performance of the Defense Contract Audit Agency and report its findings within 60 days.

The request follows a highly critical Government Accountability Office report released in July that documented improper management practices at the agency charged with overseeing Defense contracts worth billions of dollars.

The GAO investigation, which stemmed from complaints to a fraud hot line, substantiated charges that supervisors intimidated auditors, maintained improper relationships with contractors and failed to follow generally accepted government auditing standards.

"Contractor officials and the DoD contracting community improperly influenced the audit scope, conclusions and opinions of some audits -- a serious independence issue," GAO reported.

Danielle Brian, executive director of the Project on Government Oversight, questioned how meaningful the Defense Business Board review will be: "Of course it's important to hold the DCAA accountable, but the reality is, it was still the most independent entity in DoD. Now we have a group of defense industry people advising how to 'fix' the DCAA."

"I fear the cure will be much worse than the illness," Brian added.

The Defense Business Board was established in 2001 by then-Secretary Donald Rumsfeld to help bring private sector business acumen to department operations. The board's charter is to provide independent advice to the Defense secretary aimed at improving organizational efficiency and effectiveness.

The 21-member board is chaired by Michael J. Bayer, president and chief executive officer of the Washington-based consulting firm Dumbarton Strategies. Bayer is also a member of the Sandia National Laboratory's National Security Advisory Panel, the Defense Science Board and the Chief of Naval Operations Executive Panel.