DCAA Compliance Audit

The Defense Contract Audit Agency (DCAA) is the contract auditing arm of the U.S. Department of Defense under the authority, direction, and control of the United States Under Secretary of Defense (Comptroller). The DCAA also provides accounting and financial advisory services regarding contracts and subcontracts to all DoD Components responsible for procurement and contract administration. Most, if not all, Government contractors will undergo a DCAA compliance audit at some point during their contracting lifetime.

The Federal Government has recently asked for greater transparency and a concentrated effort to identify fraud waste and abuse. This new focus has resulted in an increased need for Government contractors to endure a DCAA compliance audit of proposals and accounting systems. In turn, contractors are required to expend significant time and resources to ensure full DCAA compliance to avoid the repercussions of a failed DCAA compliance audit. This adds yet another level of bureaucracy that contractors must contend with.