The U.S. Department of Defense agency responsible for auditing and providing financial advisory services on government contracts. DCAA evaluates contractor accounting systems, indirect cost rates, incurred costs, forward pricing proposals, and compliance with applicable cost principles and regulations, including the Federal Acquisition Regulation (FAR) and Cost Accounting Standards (CAS). Although its primary role is to support the Department of Defense, DCAA also provides audit services to other federal agencies. Contractors pursuing cost-reimbursement, negotiated, or other complex federal contracts should understand DCAA requirements, as its audits can significantly affect proposal pricing, contract negotiations, cost recovery, and ongoing compliance.
Defense Contract Audit Agency (DCAA)
The US Department of Defense agency that audits contractor costs, rates, and accounting systems on government contracts.
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Related Glossary Terms
The official compilation of permanent U.S. federal laws, providing the statutory basis for many contracting requirements.
A global classification system used to categorize products and services for procurement and spend analysis.
A unique 12-character identifier assigned via SAM.gov to organizations doing business with the federal government, replacing the DUNS number.
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