DCAA Compliance

Defense Contract Audit Agency compliance issues.



DCAA stands for Defense Contract Audit Agency.  Here is a short description of this government agency, from their own website:

The DCAA, while serving the public interest as its primary customer, shall perform all necessary contract audits for the Department of Defense and provide accounting and financial advisory services regarding contracts and subcontracts to all DoD Components responsible for procurement and contract administration. These services are provided in connection with negotiation, administration, and settlement of contracts and subcontracts to ensure taxpayer dollars are spent on fair and reasonable contract prices. The DCAA shall provide contract audit services to other Federal agencies as appropriate.


In order to qualify for DCAA contracts, you must meet the huge compliance burden the government lays on you.  That's just the administrative overhead necessary to play the game.  That normally means you must have admin people who can watch over the process, in addition to the engineers doing the actual work.  That's expensive!  It's much easier to have a timesheet with the knowledge of DCAA built in.  It enforces the rules and ensures compliance.  But in some cases outside governance is still necessary.

First off, DCAA wants you to record your time every day.  That way, you won't forget.  It's a good policy, even if you don't need to comply with DCAA.  So we have features to ensure that happens.  You must also record all your hours, billable or not.  So you need a timesheet that lets you mark time logs as billable and non-billable.  Employees must "sign" each weekly timecard, and supervisors must "cosign."  In electronic timecard terminology, this means clicking a button that signifies and electronic signature.  As long as a date stamp is recorded for each click, it qualifies.

It has long been known that Excel spreadsheets cannot adequately server as DCAA compliant timecards.  Software, written specifically for the task, is the only real solution.  Getting audited is no fun.  Fortunately, Standard Time is a cost effect DCAA compliant timecard system that will save you the risk.  It's inexpensive and easy to use.  You can have it deployed in a matter of hours, and start right in billing hours to the Federal government.

Also see: Video: Contract Management and Option Year Funding, How Standard Time meets DCAA, and Avoiding a DCAA Audit, and DCAA Website



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