GovCon Intelligence

Prime contractors bear full responsibility for subcontractor accounting compliance on government contracts. DCAA audits the prime’s subcontract management system, cost tracking, consent documentation, and flow-down clauses. One weak subcontractor creates questioned costs across the entire contract.

CPA-managed bookkeeping protects government contractors from DCAA audit findings, questioned costs, and False Claims Act exposure. Learn why CPA oversight matters.

Complete DCAA accounting system checklist covering all 18 DFARS 252.242-7006 criteria. Self-assessment guide for government contractors.

DCAA runs 7 distinct audit types: pre-award survey, incurred cost, floor check, forward pricing, business system, CAS compliance, and special audit. Preparation guide for each.

Government contractor bookkeeping follows FAR Part 31 and CAS on top of GAAP. Learn why commercial bookkeeping fails DCAA audits and SF 1408 surveys.

Prepare your incurred cost submission with this month-by-month checklist. Covers all 15 ICS schedules, top rejection reasons, and reconciliation steps.

A forward pricing rate proposal establishes the indirect rates a contractor uses to price future government contracts. DCAA audits every FPRP before it becomes a negotiated rate. Errors in the proposal delay contract awards and inflate questioned costs.

A DCAA accounting system audit failure triggers payment withholding, corrective action deadlines, and contracting officer scrutiny. Recovery starts with understanding the exact process and building a corrective action plan the ACO will approve.

The FAR 31.205-6(p) compensation cap limits what government contractors bill for employee compensation. For 2026, the estimated cap is $695,000, up from $671,000 in 2025. Here is what the change means for your indirect rates, your incurred cost submission, and your next DCAA audit.

The Service Contract Act (41 U.S.C. 6701-6707) requires government service contractors to pay prevailing wages and fringe benefits on contracts over $2,500. Violations trigger back pay, contract termination, and three-year debarment. This guide covers wage determinations, fringe benefit calculations, record-keeping rules, and how SCA differs from Davis-Bacon.