GSA Has No Authority to Audit Logistics Defense Contractor

The Government Services Agency lacks statutory authority to audit a defense contractor that provides only logistical services to the government, the D.C. Circuit said Friday.

GSA can audit only bills presented to the government by carriers and freight forwarders under 31 U.S.C. §3726(b), Judge Robert L. Wilkins said for the US Court of Appeals for the D.C. Circuit. But Crowley Government Services Inc. is neither.

GSA’s attempt to collect $37 million it said Crowley over billed the government was therefore void, Wilkins said.

Crowley contracted with the US Department of Defense Transportation Command in 2016 to provide “transportation coordination services” ...