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Is there a clause or other public law or code that provides for contracting a shared-savings contract where a portion of recouped billing overpayments can be shared in whole or in part between the federal Government and the audit contractor? The only shared savings types of contracting I can identify in the FAR are VECP and third party financed shared energy savings. Thank you.
Answer
The answer to your question is yes as long as you are contracting with a Certified Public Accountant firm with pre-requisites, strong section H “Special Contract Requirement” provision that details how this arrangement will work. Also, consider any FAR Subpart 9.5 - Organizational and Consultant Conflicts of Interest procedures in addition to drafting strong non-disclosure agreements.

Prior to going forth with the above, I recommend you contact DCMA to determine if the company has a recent Billing System Review. I would also contact DCAA to determine if they have any suggestions or input to assist in developing your initiative.

All said, there are a lot of other issues that you need to consider, and I highly suggest that you meet with your organization’s legal POC, Budget, and your Contracting Officer to discuss this effort. In spirit of engagement with Industry, I also suggest that you contact the potential contractors that perform audit services in an effort to determine interest in your effort and the terms and conditions that would apply.
You need a strong planning phase to build a solid foundation for your contract. This will remove ambiguities, that could ultimately result in increased risks.

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