DCAA

The Defense Contract Audit Agency is the DoD agency responsible for auditing defense contractors' costs, pricing proposals, and accounting systems. DCAA performs pre-award audits of proposed costs, post-award audits of incurred costs, and evaluations of contractor business systems.

DCAA audits examine whether contractor accounting systems comply with Cost Accounting Standards and FAR cost principles. An adequate accounting system determination from DCAA is often required before receiving cost-reimbursement contracts. DCAA findings can result in cost disallowances, system deficiency findings, and recommendations to contracting officers affecting contract administration.