Reference no: EM133231123
On a contract that includes certified cost or pricing data, a Defense Contract Audit Agency (DCAA) audit confirms that one of the subcontractors submitted cost or pricing data that were inaccurate. This defective data resulted in overpayments by the government of $ 2 million. Further investigation reveals the subcontractor was aware of the inaccuracy, but the prime contractor was not. What recourse does the government have?
1. Charge the subcontractor $4 million, plus interest, compounded daily, until the overpayment is repaid
2. Charge the prime contractor $4 million, plus interest, compounded daily, until the overpayment is repaid
3. Charge the prime contractor $6 million, plus interest, compounded daily, until the overpayment is repaid
4. Charge the subcontractor $2 million, plus interest, compounded daily, until the overpayment is repaid.
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