"During our audit of the RDC‑U [Remote Maintenance and Distribution - Ukraine] contract, we identified that Army contracting personnel did not properly review 53 contractor invoices as of July 26, 2023, totaling $20 million, to ensure compliance with the contract, despite established requirements and best practices to review invoices," the report said.
The problems occurred because the contracting officer inappropriately waived the contracting officer's representative review and approval of invoices, the report said.
"In addition, the contracting officer relied on the Defense Contract Audit Agency’s (DCAA) closeout audits, which primarily focus on indirect cost rates and not on whether invoiced amounts were allowable, allocable, or reasonable," the report added.
The overpayments could have been avoided if the contracting officials had reviewed invoices prior to payment, according to the report.