Honeywell Federal Manufacturing & Technology’s internal cost allowability audits have been reliable, the Department of Energy’s Office of Inspector General (IG) found in a Sept. 21 assessment report of the contractor’s audits from fiscal 2012 through 2014.
Honeywell FM&T has served as the management and operations contractor for the National Security Campus at Kansas City, Mo., since October 2010. The site produces non-nuclear components for nuclear weapons. Allowable costs are those that comply with the terms of the contract and relevant regulations.
The IG found that Honeywell incurred approximately $2 billion in costs from fiscal 2012-2014. The contractor’s internal audit identified $289,110 in questioned costs during that time, all of which were resolved, the IG said. The company also conducted 12 audits of subcontractors and identified $7,070 in questioned costs, which were also resolved, it added. “We did not identify any material internal control weaknesses with the cost allowability audits,” the IG said. Its audit made no recommendations.
