Federal Contract Law Firm Helps Clients Deal with DCAA Audits

Experiencing Cost Issues? Our Government Contract Lawyers Can Help

Learn More About Government Contracts and Awards

The Defense Contract Audit Agency (DCAA) reviews the accounting practices and accounting of government contractors, including prime contractors and subcontractors, and provides audit and financial advisory services to Department of Defense (DoD) and other federal entities responsible for acquisition and contract administration.

Some common DCAA activities include:

• Accounting system reviews to ensure that the company can meet requirements of federal contracting rules
• Pre-award surveys
• Financial capabilities reviews to make sure that the contractor has the financial strength and backing to perform on a contract
• Floor checks or timesheet audits conducted in person by a DCAA auditor
• Incurred costs audits when contractors have submitted details of their actual indirect rates for a fiscal year

The Audit Process Overview – Information for Contractors Manual on the DCAA’s website provides an introduction to DCAA, describes the attributes of the adequate labor and accounting system, price proposals, cost accounting standard, contract financing, and interim and final vouchers and incurred cost proposals.

DCAA Compliance

When the DCAA performs an audit or a pre-award survey of a government contractor, they are reviewing the contractor’s compliance with the Federal Acquisition Regulations (FAR). The FAR is the major set of rules in the Federal Acquisition Regulation System, which consists of sets of regulations issued by agencies of the Federal government to administer what is called the acquisition process, the process through which the government purchases or acquires goods and services.

The FAR outlines the requirements of contractors during the acquisition process:

• The terms under which the government obtains ownership, title and control of the goods or services purchased
• Rules on specifications, payments, and conduct
• Actions regarding solicitation of bids and payment of invoices

If a contractor is not in compliance with the FAR, they may be prevented from pursuing future government contracts or teaming arrangements with other contractors. It is also possible that DCAA will suggest to the Contracting Officer to stop payments on work that is in progress or disallow costs on completed contracts, making it critical for all contractors to comply with the FAR.

Contact Our Government Contract Law Firm Today

For aggressive representation in cost issues and DCAA audits, contact the Whay Law Firm firm online or call (202) 448-9677 to schedule your initial consultation today.