Overhead Costs: Unallowable and Questionable Costs Charged by E-Systems, Inc.

Pursuant to a congressional request, GAO reviewed a Department of Defense contractor's general and administrative expenses for 1989 through 1992, focusing on: (1) its unallowable costs; (2) the Defense Contract Audit Agency's (DCAA) contractor audits; and (3) the contractor's internal controls for detecting and segregating unallowable costs.