Defense Contract Audit Agency Introduction and Overview
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1 Defense Contract Audit Agency Introduction and Overview Tinker and the Primes August 14, 2018 Ms. Patricia Fulks, CPA DCAA Financial Liaison Advisor (FLA) Tinker AFB PH: (405) The views expressed in this presentation are DCAA's views and not necessarily the views of other DoD organizations One Agency, One Team, One Direction Page 1
2 Department of Defense Organization Secretary of Defense Deputy Sec of Defense Department of Army Department of Navy Department of Air Force Under Secretary (A T & L) Under Secretary (Comptroller) Inspector General Procurement Procurement Procurement DCMA DCAA Our placement under the DoD Comptroller assures our independence from offices that have procurement responsibility within the services. One Agency, One Team, One Direction Page 2
3 Legend Director s Office Headquarters Director Anita Bales Deputy Director vacant Regions Corp. Audit Directorates Inspector General Angela Janysek-Denzler Chief of Staff Anthony Cruz General Counsel Daryl Witherspoon Operations Donald McKenzie Assistant Director Human Capital and Resource Management Maureen Higgins Assistant Director Policy and Plans Martha McKune Assistant Director Integrity & Quality Assurance Don Mullinax Assistant Director Eastern Region David Johnson Regional Director Cathy Carrell Deputy RD Central Region Diana Graff Regional Director vacant Deputy RD Western Region Debbra Caw Regional Director C. Steven Hernandez Deputy RD Field Detachment Ken Anderson Regional Director Joe Bucsko Deputy RD Corporate Audit Directorate Northrop Grumman Christopher Andrezze Corporate Director Kimberly Moore Deputy CD Corporate Audit Directorate Boeing & Honeywell vacant Corporate Director Jennifer Desautel Deputy CD Corporate Audit Directorate Raytheon, General Dynamics & BAE Rob Paquette Corporate Director Robert Landry Deputy CD Corporate Audit Directorate Lockheed Martin John Shire Corporate Director Laura Michaels Deputy CD One Agency, One Team, One Direction Page 3
4 Defense Contract Audit Agency Approximately 5,000 employees located at over 300 offices throughout the United States and overseas Responsibilities and Duties: Perform all needed contract audits for DoD Provide accounting and financial advisory services to DoD (and civilian agencies when requested) acquisition and contract administration components during all contract phases: Preaward Contract execution Settlement (contract closing) One Agency, One Team, One Direction Page 4
5 DCAA Services Throughout Phases of an Award Pre-Award Throughout Completion Accounting System Proposal Review - Labor Rates - Indirect Rates - Materials - ODC Annual Incurred Cost Reviews Real Time Labor and Material CAS Compliance Business Systems Provisional Billing Rates/ Vouchers Progress Payments Truth in Negotiations Special Contracting/ Award Officer requests Final Voucher Terminations One Agency, One Team, One Direction Page 5
6 Why DCAA Reviews Costs ALLOWABILITY FAR The cost is allowable when it is reasonable, allocable and complies with FAR , CAS (Cost Accounting Standards), laws and regulations, and terms of the contract. ALLOCABILITY FAR A cost is allocable if it is assignable or chargeable to one or more cost objectives on the basis of relative benefits received or other equitable relationship... If it is incurred specifically for one contract; benefits both the contract and other work; or is necessary to the overall operation of the business. REASONABLENESS FAR A cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent person in the conduct of competitive business. One Agency, One Team, One Direction Page 6
7 What is DCAA Doing for Agility? Early involvement in the acquisition process Attending pre-rfp meetings or other meetings before proposal is submitted Tailored audit engagements and audit steps to focus in on risk areas Involved in small business resources and outreach One Agency, One Team, One Direction Page 7
8 DCAA Internet Resources Audit Process Overview Information for Contractors Manual DCAA Preaward Accounting System Checklist DoD Contract Proposal Adequacy Checklist DoD Forward Pricing Rate Adequacy Checklist DCAA Incurred Cost Adequacy Checklist Incurred Cost Electronically (ICE) Model Links to Acquisition Regulations Small Business Seminar Slides One Agency, One Team, One Direction Page 8
9 One Agency, One Team, One Direction Page 9
10 One Agency, One Team, One Direction Page 10
11 One Agency, One Team, One Direction Page 11
12 One Agency, One Team, One Direction Page 12
13 Contact Information DoD Office of Small Business Programs DCAA One Agency, One Team, One Direction Page 13
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