Title 10 — Armed Forces
Part V · Chapter 279 — Contractor Audits and Accounting
§ 3847. Defense Contract Audit Agency: annual report
Statutory text
Required Report.—
The Director of the Defense Contract Audit Agency shall prepare an annual report of the activities of the Agency during the previous fiscal year. The report shall include, at a minimum—
a description of significant problems, abuses, and deficiencies encountered during the conduct of contractor audits;
statistical tables showing—
the total number and dollar value of audit reports completed and pending, set forth separately by type of audit;
the priority given to each type of audit;
the length of time taken for each type of audit, both from the date of receipt of a qualified incurred cost submission and from the date the audit begins;
the sustained questioned costs, set forth separately by type of audit, both as a total value and as a percentage of the total questioned costs for the audit;
the total number and dollar value of incurred cost audits completed, and the method by which such incurred cost audits were completed;
the aggregate cost of performing audits, set forth separately by type of audit;
the ratio of sustained questioned costs to the aggregate costs of performing audits, set forth separately by type of audit; and
the total number and dollar value of audits that are pending for a period longer than one year as of the end of the fiscal year covered by the report, and the fiscal year in which the qualified submission was received, set forth separately by type of audit;
a summary of any recommendations of actions or resources needed to improve the audit process;
a summary, set forth separately by dollar amount and percentage, of indirect costs for independent research and development incurred by contractors in the previous fiscal year;
a summary, set forth separately by dollar amount and percentage, of indirect costs for bid and proposal costs incurred by contractors in the previous fiscal year;
a description of outreach actions toward industry to promote more effective use of audit resources; and
any other matters the Director considers appropriate.
Submission of Annual Report.—
Not later than March 30 of each year, the Director shall submit to the congressional defense committees the report required by subsection (a).
Public Availability.—
Not later than 60 days after the submission of an annual report to the congressional defense committees under subsection (b), the Director shall make the report available on the publicly available website of the Agency or such other publicly available website as the Director considers appropriate.
Definitions.—
The terms “incurred cost audit” and “qualified incurred cost submission” have the meaning given those terms in section 3842 of this title.
The term “sustained questioned costs” means questioned costs that were recovered by the Federal Government as a result of contract negotiations related to such questioned costs.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
National Defense Authorization Act for Fiscal Year 2012
Pub. L. 112–81 div. A title VIII § 805(a) · 125 Stat. 1298
Enacted · 10 U.S.C. § 3847
Added Pub. L. 112–81, div. A, title VIII, § 805(a), Dec. 31, 2011, 125 Stat. 1486, § 2313a
Source evidence
Code source credit
Added Pub. L. 112–81, div. A, title VIII, § 805(a), Dec. 31, 2011, 125 Stat. 1486, § 2313aEnacted provision · exact public law section
(a) Defense Contract Audit Agency Annual Report.— Chapter 137 of title 10, United States Code, is amended by inserting after section 2313 the following new section: “§ 2313a. Defense Contract Audit Agency: annual report “(a) Required Report.— The Director of the Defense Contract Audit Agency shall prepare an annual report of the activities of the Agency during the previous fiscal year. The report shall include, at a minimum— “(1) a description of significant problems, abuses, and deficiencies encountered during the conduct of contractor audits; “(2) statistical tables showing— “(A) the total number of audit reports completed and pending; “(B) the priority given to each type of audit; “(C) the length of time taken for each type of audit; “(D) the total dollar value of questioned costs (including a separate category for the dollar value of unsupported costs); and “(E) an assessment of the number and types of audits pending for a period longer than allowed pursuant to guidance of the Defense Contract Audit Agency; “(3) a summary of any recommendations of actions or resources needed to improve the audit process; and “(4) any other matters the Director considers appropriate. “(b) Submission of Annual Report.— Not later than March 30 of each year, the Director shall submit to the congressional defense committees the report required by subsection (a). “(c) Public Availability.— Not later than 60 days after the submission of an annual report to the congressional defense committees under subsection (b), the Director shall make the report available on the publicly available website of the Agency or such other publicly available website as the Director considers appropriate.” .National Defense Authorization Act for Fiscal Year 2016
Pub. L. 114–92 § 893(b)(1) · 129 Stat. 726
Amended · 10 U.S.C. § 3847(a)(2)(D)
Pub. L. 114–92, § 893(b)(1), amended subpar. (D) generally. Prior to amendment, subpar. (D) read as follows: “the total dollar value of questioned costs (including a separate category for the dollar value of unsupported costs); and”
Source evidence
Code amendment note
Subsec. (a)(2)(D). Pub. L. 114–92, § 893(b)(1), amended subpar. (D) generally. Prior to amendment, subpar. (D) read as follows: “the total dollar value of questioned costs (including a separate category for the dollar value of unsupported costs); and”.Enacted provision · exact public law section
(1) in paragraph (2), by amending subparagraph (D) to read as follows: “(D) the total costs of sustained or recovered costs both as a total number and as a percentage of questioned costs; and” ;National Defense Authorization Act for Fiscal Year 2016
Pub. L. 114–92 § 893(b)(2) · 129 Stat. 726
Added · 10 U.S.C. § 3847(a)(4); 10 U.S.C. § 3847(a)(5)
Pub. L. 114–92, § 893(b)(2)–(4), added par. (4)
Redesignated · 10 U.S.C. § 3847(a)(4); 10 U.S.C. § 3847(a)(5)
Pub. L. 114–92, § 893(b)(2)–(4), redesignated former par. (4) as (5)
Source evidence
Code amendment note
Subsec. (a)(4), (5). Pub. L. 114–92, § 893(b)(2)–(4), added par. (4) and redesignated former par. (4) as (5).Enacted provision · exact public law section
(2) in paragraph (3), by striking “; and” and inserting a semicolon;National Defense Authorization Act for Fiscal Year 2017
Pub. L. 114–328 § 824(d)(1)(B) · 130 Stat. 2000
Amended · 10 U.S.C. § 3847(a)(4); 10 U.S.C. § 3847(a)(5)
Pub. L. 114–328, § 824(d)(1)(B), as amended by Pub. L. 115–91, § 1081(d)(5)
Redesignated · 10 U.S.C. § 3847(a)(4); 10 U.S.C. § 3847(a)(5)
Pub. L. 114–328, § 824(d)(1)(B), as added pars. (4) and (5). Former pars. (4) and (5) redesignated (6) and (7), respectively
Source evidence
Code amendment note
Subsec. (a)(4), (5). Pub. L. 114–328, § 824(d)(1)(B), as amended by Pub. L. 115–91, § 1081(d)(5), added pars. (4) and (5). Former pars. (4) and (5) redesignated (6) and (7), respectively.Enacted provision · exact public law section
(B) by inserting after paragraph (3) the following new paragraphs: “(3) a summary, set forth separately by dollar amount and percentage, of indirect costs for independent research and development incurred by contractors in the previous fiscal year; “(4) a summary, set forth separately by dollar amount and percentage, of indirect costs for bid and proposal costs incurred by contractors in the previous fiscal year;” .National Defense Authorization Act for Fiscal Year 2017
Pub. L. 114–328 § 824(d)(1)(A) · 130 Stat. 2000
Redesignated · 10 U.S.C. § 3847(a)(6); 10 U.S.C. § 3847(a)(7)
Pub. L. 114–328, § 824(d)(1)(A), redesignated pars. (4) and (5) as (6) and (7), respectively
Source evidence
Code amendment note
Subsec. (a)(6), (7). Pub. L. 114–328, § 824(d)(1)(A), redesignated pars. (4) and (5) as (6) and (7), respectively.Enacted provision · exact public law section
(A) by redesignating paragraphs (4) and (5) as paragraphs (6) and (7), respectively; andNational Defense Authorization Act for Fiscal Year 2018
Pub. L. 115–91 § 811(d)(1)(A)(i) · 131 Stat. 1283
Inserted · 10 U.S.C. § 3847(a)(2)(A)
Pub. L. 115–91, § 811(d)(1)(A)(i), inserted “and dollar value” after “number” and “, set forth separately by type of audit” after “pending”
Source evidence
Code amendment note
Subsec. (a)(2)(A). Pub. L. 115–91, § 811(d)(1)(A)(i), inserted “and dollar value” after “number” and “, set forth separately by type of audit” after “pending”.Enacted provision · exact public law section
(i) in subparagraph (A)— (I) by inserting “and dollar value” after “number”; and (II) by inserting “, set forth separately by type of audit” after “pending”;National Defense Authorization Act for Fiscal Year 2018
Pub. L. 115–91 § 811(d)(1)(A)(ii) · 131 Stat. 1283
Inserted · 10 U.S.C. § 3847(a)(2)(C)
Pub. L. 115–91, § 811(d)(1)(A)(ii), inserted “, both from the date of receipt of a qualified incurred cost submission and from the date the audit begins” after “audit”
Source evidence
Code amendment note
Subsec. (a)(2)(C). Pub. L. 115–91, § 811(d)(1)(A)(ii), inserted “, both from the date of receipt of a qualified incurred cost submission and from the date the audit begins” after “audit”.Enacted provision · exact public law section
(ii) in subparagraph (C), by inserting “, both from the date of receipt of a qualified incurred cost submission and from the date the audit begins” after “audit”;National Defense Authorization Act for Fiscal Year 2018
Pub. L. 115–91 § 811(d)(1)(A)(iii) · 131 Stat. 1283
Amended · 10 U.S.C. § 3847(a)(2)(D)
Pub. L. 115–91, § 811(d)(1)(A)(iii), amended subpar. (D) generally. Prior to amendment, subpar. (D) read as follows: “the total costs of sustained or recovered costs both as a total number and as a percentage of questioned costs; and”
Source evidence
Code amendment note
Subsec. (a)(2)(D). Pub. L. 115–91, § 811(d)(1)(A)(iii), amended subpar. (D) generally. Prior to amendment, subpar. (D) read as follows: “the total costs of sustained or recovered costs both as a total number and as a percentage of questioned costs; and”.Enacted provision · exact public law section
(iii) by amending subparagraph (D) to read as follows: “(D) the sustained questioned costs, set forth separately by type of audit, both as a total value and as a percentage of the total questioned costs for the audit;” ;National Defense Authorization Act for Fiscal Year 2018
Pub. L. 115–91 § 811(d)(1)(A)(iv) · 131 Stat. 1283
Added · 10 U.S.C. § 3847(a)(2)(E)(H)
Pub. L. 115–91, § 811(d)(1)(A)(iv), (v), added subpars. (E) to (H)
Struck · 10 U.S.C. § 3847(a)(2)(E)(H)
Pub. L. 115–91, § 811(d)(1)(A)(iv), (v), struck out former subpar. (E) which read as follows: “an assessment of the number and types of audits pending for a period longer than allowed pursuant to guidance of the Defense Contract Audit Agency;”
Source evidence
Code amendment note
Subsec. (a)(2)(E) to (H). Pub. L. 115–91, § 811(d)(1)(A)(iv), (v), added subpars. (E) to (H) and struck out former subpar. (E) which read as follows: “an assessment of the number and types of audits pending for a period longer than allowed pursuant to guidance of the Defense Contract Audit Agency;”.Enacted provision · exact public law section
(iv) by striking subparagraph (E); andNational Defense Authorization Act for Fiscal Year 2018
Pub. L. 115–91 § 1081(d)(5) · 131 Stat. 1283
Amended · 10 U.S.C. § 3847(a)(4); 10 U.S.C. § 3847(a)(5)
Pub. L. 115–91, § 1081(d)(5), amended Pub. L. 114–328, § 824(d)(1)(B). See 2016 Amendment note below
Source evidence
Code amendment note
Subsec. (a)(4), (5). Pub. L. 115–91, § 1081(d)(5), amended Pub. L. 114–328, § 824(d)(1)(B). See 2016 Amendment note below.Enacted provision · exact public law section
(5) The matter to be inserted by section 824(d)(1)(B) (130 Stat. 2279) 10 USC 2313a. is amended— (A) by striking “(3)” and inserting “(4)”; and (B) by striking “(4)” and inserting “(5)”.National Defense Authorization Act for Fiscal Year 2018
Pub. L. 115–91 § 811(d)(1)(B) · 131 Stat. 1283
Added · 10 U.S.C. § 3847(d)
Pub. L. 115–91, § 811(d)(1)(B), added subsec. (d)
Source evidence
Code amendment note
Subsec. (d). Pub. L. 115–91, § 811(d)(1)(B), added subsec. (d).Enacted provision · exact public law section
(B) by adding at the end the following new subsection: “(d) Definitions.— “(1) The terms ‘incurred cost audit’ and ‘qualified incurred cost submission’ have the meaning given those terms in section 2313b of this title. “(2) The term ‘sustained questioned costs’ means questioned costs that were recovered by the Federal Government as a result of contract negotiations related to such questioned costs.” .William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021
Pub. L. 116–283 § 1835(c) · 134 Stat. 3388
Changed · 10 U.S.C. § 3847
Pub. L. 116–283, § 1835(c), renumbered section 2313a of this title as this section
Source evidence
Code amendment note
Pub. L. 116–283, § 1835(c), renumbered section 2313a of this title as this section.Enacted provision · exact public law section
(c) Transfer of Title 10 Sections.— Sections 2313b, 2410b, 2313a, and 204 of title 10, United States Code, are transferred to chapter 279 of such title, as added by subsection (a), inserted (in that order) after section 3841, as amended by subsection (b), and redesignated as sections 3842, 3845, 3847, and 3848, respectively.Effective date note
Amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021
Pub. L. 116–283 § 1835(d)(3) · 134 Stat. 3388
Substituted · 10 U.S.C. § 3847(d)(1)
Pub. L. 116–283, § 1835(d)(3), substituted “section 3842” for “section 2313b”
Source evidence
Code amendment note
Subsec. (d)(1). Pub. L. 116–283, § 1835(d)(3), substituted “section 3842” for “section 2313b”.Enacted provision · exact public law section
(3) Section 3847 of such title, as so transferred and redesignated, is amended by striking “section 2313b” in subsection (d)(1) and inserting “section 3842”.Effective date note
Amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.
16 of 16 references resolved to an enrolled provision
Editorial Notes
Prior Provisions
A prior section 3847, added Pub. L. 85–861, § 1(94), , 72 Stat. 1484; Pub. L. 86–559, § 1(25), , 74 Stat. 272, provided for transfer to Retired Reserve or discharge from his reserve appointment, after , of each officer in a reserve grade below lieutenant colonel with 25 years service assigned to Army Nurse Corps, Army Medical Specialist Corps, or Women’s Army Corps who had not been recommended for promotion to reserve grade of lieutenant colonel or who has not remained on active duty since such a recommendation, prior to repeal by Pub. L. 90–130, § 1(12)(A), , 81 Stat. 376.
Amendments2015–2021 · 4 rounds
2021
Pub. L. 116–283, § 1835(c), renumbered section 2313a of this title as this section.
Subsec. (d)(1). Pub. L. 116–283, § 1835(d)(3), substituted “section 3842” for “section 2313b”.
2017
Subsec. (a)(2)(A). Pub. L. 115–91, § 811(d)(1)(A)(i), inserted “and dollar value” after “number” and “, set forth separately by type of audit” after “pending”.
Subsec. (a)(2)(C). Pub. L. 115–91, § 811(d)(1)(A)(ii), inserted “, both from the date of receipt of a qualified incurred cost submission and from the date the audit begins” after “audit”.
Subsec. (a)(2)(D). Pub. L. 115–91, § 811(d)(1)(A)(iii), amended subpar. (D) generally. Prior to amendment, subpar. (D) read as follows: “the total costs of sustained or recovered costs both as a total number and as a percentage of questioned costs; and”.
Subsec. (a)(2)(E) to (H). Pub. L. 115–91, § 811(d)(1)(A)(iv), (v), added subpars. (E) to (H) and struck out former subpar. (E) which read as follows: “an assessment of the number and types of audits pending for a period longer than allowed pursuant to guidance of the Defense Contract Audit Agency;”.
Subsec. (a)(4), (5). Pub. L. 115–91, § 1081(d)(5), amended Pub. L. 114–328, § 824(d)(1)(B). See 2016 Amendment note below.
Subsec. (d). Pub. L. 115–91, § 811(d)(1)(B), added subsec. (d).
2016
Subsec. (a)(4), (5). Pub. L. 114–328, § 824(d)(1)(B), as amended by Pub. L. 115–91, § 1081(d)(5), added pars. (4) and (5). Former pars. (4) and (5) redesignated (6) and (7), respectively.
Subsec. (a)(6), (7). Pub. L. 114–328, § 824(d)(1)(A), redesignated pars. (4) and (5) as (6) and (7), respectively.
2015
Subsec. (a)(2)(D). Pub. L. 114–92, § 893(b)(1), amended subpar. (D) generally. Prior to amendment, subpar. (D) read as follows: “the total dollar value of questioned costs (including a separate category for the dollar value of unsupported costs); and”.
Subsec. (a)(4), (5). Pub. L. 114–92, § 893(b)(2)–(4), added par. (4) and redesignated former par. (4) as (5).
Statutory Notes and Related Subsidiaries
Effective Date of 2021 Amendment
Amendment by Pub. L. 116–283 effective , with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.
Effective Date of 2017 Amendment
Pub. L. 115–91, div. A, title X, § 1081(d), , 131 Stat. 1599, provided that the amendment made by section 1081(d)(5) is effective as of , and as if included in Pub. L. 114–328 as enacted.
Effective Date of 2016 Amendment
Pub. L. 114–328, div. A, title VIII, § 824(d)(2), , 130 Stat. 2279, provided that: “The amendments made by this subsection [amending this section] shall take effect on .”
Credits
2011–2021 · 5 acts
- 2011Added Pub. L. 112–81, div. A, title VIII, § 805(a), , 125 Stat. 1486, § 2313a
- 2015amended Pub. L. 114–92, div. A, title VIII, § 893(b), , 129 Stat. 952
- 2016Pub. L. 114–328, div. A, title VIII, § 824(d)(1), , 130 Stat. 2279
- 2017Pub. L. 115–91, div. A, title VIII, § 811(d)(1), title X, § 1081(d)(5), , 131 Stat. 1460, 1600
- 2021renumbered § 3847 and amended Pub. L. 116–283, div. A, title XVIII, § 1835(c), (d)(3), , 134 Stat. 4240.
Show as published
(Added Pub. L. 112–81, div. A, title VIII, § 805(a), , 125 Stat. 1486, § 2313a; amended Pub. L. 114–92, div. A, title VIII, § 893(b), , 129 Stat. 952; Pub. L. 114–328, div. A, title VIII, § 824(d)(1), , 130 Stat. 2279; Pub. L. 115–91, div. A, title VIII, § 811(d)(1), title X, § 1081(d)(5), , 131 Stat. 1460, 1600; renumbered § 3847 and amended Pub. L. 116–283, div. A, title XVIII, § 1835(c), (d)(3), , 134 Stat. 4240.)