While the Defense Contract Management Agency has made progress in rebuilding its capacity, it still faces some significant challenges, according to the most recent Government Accountability Office report examining the agency.

GAO said one big risk is DCMA’s reliance on the Defense Contract Audit Agency to audit contractor business systems. DCAA has its own problems, GAO said, and is often backlogged. Plus, the systems haven’t been audited in several years.

There are also other risks. GAO auditors said it isn’t clear there will be enough funding to retain the employees who were hired using the Defense Acquisition Workforce Development Fund. DoD should step in, according to the report, and help DCMA and DCAA handle audits of contractor business systems and clarify the agency’s plans for funding.

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