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?

Charge the prime contractor $6 million plus interest compounded daily until the overpayment is repaid

Charge the subcontractor $2 million plus interest compounded daily until the overpayment is repaid

Charge the subcontractor $4 million plus interest compounded daily until the overpayment is repaid

Charge the prime contractor $4 million plus interest compounded daily until the overpayment is repaid

Answer rating: 100% (QA)

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