Question
A $7 million contract for technical support services included the requirement for certified cost or pricing data from the prime contractor and applicable subcontractors, Six
A $7 million contract for technical support services included the requirement for certified cost or pricing data from the prime contractor and applicable subcontractors, Six Months later, the administrative contracting officer (ACO) began to suspect that some of the certified cost or pricing were inaccurate. A Defense Contract Audit Agency (DCAA) audit confirmed the ACO's suspicions. Further investigation revealed that neither the prime contractor nor the subcontractor that submitted the defective data was aware of the inaccuracy. Because of the defective date, the government overpaid by $1.5 million. In this case, what recourse does the government have?
A. Charge the prime contractor $3 million, plus interest, compounded daily, until the overpayment is repaid.
B. Charge the prime contractor $3 million, plus interest, compounded daily, until the overpayment is repaid.
C. Charge the subcontractor $1.5 million, plus interest, compounded daily, until the overpayment is repaid.
D. Charge the prime contractor $1.5 million, plus interest, compounded daily, until the overpayment is repaid.
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