DCAA Compliance

You filed your incurred cost submission by the deadline. Now what? DCAA has a defined process for reviewing your submission, selecting it for audit, and finalizing your indirect rates. Here is every step, from adequacy review to final rate agreement.

Timekeeping is the most audited area in government contracting. DCAA tests it in nearly every engagement. This guide covers the setup requirements, software options, policy essentials, and floor check preparation that keep your labor costs defensible.

The CASB DS-1 Disclosure Statement is one of the most misunderstood compliance requirements in government contracting. Most contractors never need one. Those who do often discover the requirement at the worst possible moment: during a contract negotiation or DCAA audit.

DCAA audit findings rarely originate from deliberate fraud. They start with bookkeeping errors that compound over months or years without detection. CPA oversight catches the seven recurring mistakes before they become questioned costs, system disapprovals, or withheld payments.

DCAA questioned billions in contractor costs last fiscal year. The same ten findings drive the majority of those questioned costs. Every one of them is preventable with the right accounting controls in place before the auditor arrives.

How to conduct and document a compensation reasonableness study under FAR 31.205-6. Covers the $695,000 cap for 2026, salary survey sources, the fringe benefit trap, owner compensation rules, and bonus documentation requirements.

A phased 90-day DCAA audit preparation playbook covering self-assessment, remediation, and readiness testing. Includes the first test auditors run, voluntary deletion strategy, and audit-type-specific preparation priorities.

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.

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