DCAA opens new areas for audits

The Defense Contract Auditing Agency is turning up the heat on its hunt for unallowable costs. A blogger on About.com is reporting that the DCAA is increasing its focus on several areas including business development and marketing, per diem limits, project losses, procedure changes and forward pricing.

Michael Bame writes that DCAA briefed him on the new focus areas, which come out of several Government Accountability Office audits that criticized DCAA.

Among the changes are DCAA’s desire to focus on the separation of business development costs and marketing costs. Marketing costs are not an allowable cost, and DCAA wants more costs classified as marketing.

DCAA also will be paying more attention to per diem costs in expense reports and the personal use of cell phones. They also will want more original paperwork or approved scanning and storage systems to exam invoices and cost support, Bame wrote.

Reader Comments

Mon, Jan 9, 2012

DCAA neeeds to be shut down. The politices within the agency weaken the effectiveness. Managers cover up issues that should be reported at the expense of the taxpayers. The internal review team is not effective and there is not a way for auditors to report management misconduct. All managers of DCAA need to be re-evaluated by an independent agency.

Fri, Sep 23, 2011 Washington D.C. Metro

DCAA is trying to do its job, a guardian of the taxpayer money. Believe me, without DCAA the contractors have no hesistant of ripping of the Government. I was DCAA for more than 20 year, and I have saved millions of dollar of the taxpayer's money.

Wed, Sep 21, 2011

The DCAA is out of control. If anyone is having problems with disallowed costs, please contact me at davidson.seth(at)gmail.com. We deal with these types of claims all the time and can help you recover what you deserve by providing detailed cost allocation breakdowns and helping you challenge the DCAA. Drop me an email and I will get back to you with more information.

Wed, Sep 21, 2011

DCAA is a lost agency which provides virtually no benefit to the procurement community. Under its current leadership, DCAA is incapable of completing anything unless the auditors find, or create, something negative. The concept of independence is no longer part of DCAA's audit approach. With DCAA it is dig until a negative is found and if a negative cannot be found create one. I know because I am DCAA in the MAR.

Sun, Sep 18, 2011 testpilot DC

the government is just trying to keep it's ranks gainfully employed with meaningless work! If contracts were set up to only pay for performance and deliverable all of the expenses would be left to the contractors to manage efficiently as they desired. These audit activities are a waste of money.

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