DCAA Compliance | DCAA Compliant Accounting Software | PROCAS

What is DCAA Compliance?

When the DCAA performs an audit or a pre-award survey of a government contractor, they are assessing the contractor's compliance with the FAR. The FAR is the principal set of rules in the Federal Acquisition Regulation System. This system consists of sets of regulations issued by agencies of the Federal government to administer what is called the "acquisition process," the process through which the government purchases ("acquires") goods and services.

The Federal Acquisition Regulations (FAR) outlines the requirements of contractors during the acquisition process:

  • for selling to the government,
  • the terms under which the government obtains ownership, title and control of the goods or services purchased,
  • rules on specifications, payments and conduct,
  • actions regarding solicitation of bids, and
  • payment of invoices.
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What is the DCAA?

The DCAA, or the Defense Contract Audit Agency, is the government agency responsible for performing all audits for the Department of Defense (DoD) to ensure government contractors comply with federal regulations regarding proper financial management. The DCAA also provides contract audit services for many other non-DoD government agencies. Their stated mission is to:

"Perform all necessary contract audits for DoD and provide accounting and financial advisory services regarding contracts and subcontracts to all DoD components responsible for procurement and contract administration. These services are to be provided in connection with the negotiation, administration, and settlement of contracts and subcontracts."

Why is DCAA Compliance so Important for Government Contractors?

If a contractor is not in compliance with the FAR, they may be precluded from future government contracts or teaming arrangements with other contractors. It is also possible for DCAA to suggest to the Contracting Officer to stop payments on work that is in progress or disallow costs on completed contracts. Therefore, it is critical for all contractors both large and small to comply with the FAR.

Review the DCAA Publication "Information for Contractors" on DCAA's website for a look at requirements when working with DCAA auditors.

The PROCAS Solution for DCAA Accounting System Compliance

PROCAS offers software solutions and consulting services to help government contractors meet the Defense Contract Audit Agency (DCAA) compliance requirements. Our software has a number of “seat belts” built-in and our experienced professionals can share best practices to ensure that your accounting system is compliant for government contracting.

While the DCAA does not support, endorse or approve accounting software from any vendor, PROCAS Software is specifically designed to comply with the FAR. PROCAS has worked exclusively with government contractors since 1997, with clients reporting that they consistently pass DCAA audits. If you'd like to see the Standard Form 1408 (SF 1408) that DCAA uses for Preaward Accounting System Surveys you can view a blank one.

You can also view the SF 1408, Preaward Survey of Prospective Contractor Accounting System, and how PROCAS Software is designed to meet the DCAA and FAR accounting system requirements. PROCAS is glad to offer a one hour interactive demo so that you can see for yourself why so many government contractors use PROCAS for their DCAA audit requirement needs. Contact PROCAS at 410-730-4011 or click here to schedule the one hour interactive demo.

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