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You are a contracting officer responsible for two contracts with Avionix Corp. One is a research and development

contract attempting to determine a suitable composite material for compressors on a next-generation jet engine, and the other is a production contract for an existing jet engine model.


An auditor advises you that he has discovered some cost mischarging under the production contract in which Avionix appears to have charged some direct labor hours expended in the production contract against the research and development contract.


Assignment: Discuss the actions you would take and any remedies that may be available to the Government in the event the auditor's allegations are substantiated?

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