Preparing for the Coming Onslaught of Government Investigations and Audits of COVID-19 Relief Funds and Contracting—Part II

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This is the second in a series of articles concerning the audits and investigations related to the contracts and grants awarded, and relief funds provided, in response to the COVID-19 pandemic. This article first discusses the Defense Contract Audit Agency’s current direction, interests, and initiatives related to contractors’ receipt of COVID-19 relief funds and the impact an uncertain business environment may have on government contract pricing and costing forecasts. It then reviews audits and investigations involving Paycheck Protection Program loans.

The first article in this series discussed the enforcers and the likely categories of programs, contracts, and companies the government might investigate or audit related to COVID-19. This article first discusses the current direction, interests, and initiatives of the Defense Contract Audit Agency (“DCAA”) related to contractors’ receipt of COVID-19 relief funds and the impact an uncertain business environment may have on government contract pricing and costing forecasts. Then, this article explores audits and investigations involving Paycheck Protection Program loans.

Originally published in the July 2021 edition of Pratt’s Government Contracting Law Report (Vol. 7, No. 7).

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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