Defense Contract Audit

by ryan on February 18, 2017


Defense Contract Audit


Essential Information on the Defense Contract Audit Agency (DCAA)

The DCAA or the Defense Contract Audit Agency is responsible for all of the contract audits for the Department of Defense under the United States government. The Defense Contract Audit Agency performs its tasks under the supervision, direction, control, and utmost authority of the Secretary of Defense of the government of the United States. The Defense Contract Audit Agency is also responsible for offering their services in the auditing of contracts for all of the other agencies and branches of the United States government. There are a lot of field offices of the DCAA or the Defense Contract Audit agency that are situated in a multitude of countries all over the world. The DCAA employs thousands of people that are evenly distributed in all of the field offices of the DCAA worldwide.



There are plenty of requirements that must be met and a number of rules and regulations that must be strictly adhered to in order to fall short in the audit and not make the grade. All of the major business corporations, such as large software companies and management firms, need to comply with all of the necessary requirements that the Defense Contract Audit Agency has come up with and strictly follow all of the rules and regulations. Every business corporation or major company needs to acquire all of the necessary documents and come up with strict policies and courses of action that must be followed. There must be a reliable system to make use of by the contractor that should include properties of billing systems and accounting matters, training of employees for strict adherence as in daily tracking of their shifts, and charges for manual labor by the hour. There should also be a careful analysis and assessment of all costs, especially those pertaining to the costs of manual labor by the hour.

These costs must all be separated into a multitude of categories, such as per contract and direct versus indirect, for organizational purposes. Indirect costs pertain to personnel benefits, accounting costs, and payroll and billing.

All of the indirect costs must be properly documented and gathered consistently. The indirect costs should all be distributed across all of the items that are under the category of direct costs. All of the expenses that are unallowable should be determined and carefully identified. The unallowable expenditures must be eliminated according to the policy. All of these costs must be properly allocated and collected, and there should be monthly reports for evaluation and further assessment.

The Defense Contract Audit Agency has a significant role to play in the oversight of a contractor. This agency is responsible for providing its services in accounting, financial counseling, and auditing for the Department of Defense and all of the other federal government agencies and subcontracts. The DCAA has laws on antidiscrimination and whistleblower protection. A government agency must not discriminate an applicant or an employee based on affiliations in politics, sex, disability, nationality, marital status, religion, race, age, or color. If a person believes that he or she has been discriminated against, he or she should immediately contact an Equal Employment Opportunity or EEO officer and file a DCAA complaint.

A person that has been discriminated against based on age should either contact an EEO officer or provide a notice stating that you intend to take legal action within 180 days. If a person has been discriminated against based on affiliation or marital status, he or she should file a written DCAA complaint with the OSC or Office of Special Counsel. Unless it is specifically stipulated and strongly prohibited by the law to divulge any information under the command of the Executive Order, any employee with high authority must not use his influence to threaten or make any personnel action against another applicant or employee. It is strictly prohibited to make any whistleblower retaliations against an applicant or another employee. Any victim of retaliation should file a written DCAA complaint with the Office of Special Counsel or the OSC in the United States.

There are accompanying disciplinary actions that are appropriate and allowed by existing laws for any federal employee who shows professional misconduct and fails to comply with the stipulated laws on whistleblower protection and antidiscrimination.






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