US Code

Public Law 119-73 (01/23/2026)

10 U.S.C. § 3847

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 and dollar value of audit reports completed and pending, set forth separately by type of audit;
(B)
the priority given to each type of audit;
(C)
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;
(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;
(E)
the total number and dollar value of incurred cost audits completed, and the method by which such incurred cost audits were completed;
(F)
the aggregate cost of performing audits, set forth separately by type of audit;
(G)
the ratio of sustained questioned costs to the aggregate costs of performing audits, set forth separately by type of audit; and
(H)
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;
(3)
a summary of any recommendations of actions or resources needed to improve the audit process;
(4)
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;
(5)
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;
(6)
a description of outreach actions toward industry to promote more effective use of audit resources; and
(7)
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.
(d)

Definitions.—

(1)
section 3842 of this title The terms “incurred cost audit” and “qualified incurred cost submission” have the meaning given those terms in .
(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.

Pub. L. 112–81, div. A, title VIII, § 805(a)125 Stat. 1486Pub. L. 114–92, div. A, title VIII, § 893(b)129 Stat. 952Pub. L. 114–328, div. A, title VIII, § 824(d)(1)130 Stat. 2279Pub. L. 115–91, div. A, title VIII, § 811(d)(1)131 Stat. 1460Pub. L. 116–283, div. A, title XVIII, § 1835(c)134 Stat. 4240(Added , , , § 2313a; amended , , ; , , ; , title X, § 1081(d)(5), , , 1600; renumbered § 3847 and amended , (d)(3), , .)

Editorial Notes

Prior Provisions

Pub. L. 85–861, § 1(94)72 Stat. 1484Pub. L. 86–559, § 1(25)74 Stat. 272Pub. L. 90–130, § 1(12)(A)81 Stat. 376A prior section 3847, added , , ; , , , 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 , , .

Amendments

Pub. L. 116–283, § 1835(c)section 2313a of this title2021—, renumbered as this section.

Pub. L. 116–283, § 1835(d)(3)Subsec. (d)(1). , substituted “section 3842” for “section 2313b”.

Pub. L. 115–91, § 811(d)(1)(A)(i)2017—Subsec. (a)(2)(A). , inserted “and dollar value” after “number” and “, set forth separately by type of audit” after “pending”.

Pub. L. 115–91, § 811(d)(1)(A)(ii)Subsec. (a)(2)(C). , inserted “, both from the date of receipt of a qualified incurred cost submission and from the date the audit begins” after “audit”.

Pub. L. 115–91, § 811(d)(1)(A)(iii)Subsec. (a)(2)(D). , 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”.

Pub. L. 115–91, § 811(d)(1)(A)(iv)Subsec. (a)(2)(E) to (H). , (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;”.

Pub. L. 115–91, § 1081(d)(5)Pub. L. 114–328, § 824(d)(1)(B)Subsec. (a)(4), (5). , amended . See 2016 Amendment note below.

Pub. L. 115–91, § 811(d)(1)(B)Subsec. (d). , added subsec. (d).

Pub. L. 114–328, § 824(d)(1)(B)Pub. L. 115–91, § 1081(d)(5)2016—Subsec. (a)(4), (5). , as amended by , added pars. (4) and (5). Former pars. (4) and (5) redesignated (6) and (7), respectively.

Pub. L. 114–328, § 824(d)(1)(A)Subsec. (a)(6), (7). , redesignated pars. (4) and (5) as (6) and (7), respectively.

Pub. L. 114–92, § 893(b)(1)2015—Subsec. (a)(2)(D). , 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”.

Pub. L. 114–92, § 893(b)(2)Subsec. (a)(4), (5). –(4), added par. (4) and redesignated former par. (4) as (5).

Statutory Notes and Related Subsidiaries

Effective Date of 2021 Amendment

Pub. L. 116–283section 1801(d) of Pub. L. 116–283section 3001 of this titleAmendment by effective , with additional provisions for delayed implementation and applicability of existing law, see , set out as a note preceding .

Effective Date of 2017 Amendment

Pub. L. 115–91, div. A, title X, § 1081(d)131 Stat. 1599Pub. L. 114–328, , , provided that the amendment made by section 1081(d)(5) is effective as of , and as if included in as enacted.

Effective Date of 2016 Amendment

Pub. L. 114–328, div. A, title VIII, § 824(d)(2)130 Stat. 2279

“The amendments made by this subsection [amending this section] shall take effect on .”
, , , provided that: