Blog Post

What You Should Know About DCAA Compliance

Being awarded a government contract can be a very lucrative opportunity for your business in the Aerospace and Defense industry. In order to win those contracts though, on top of meeting the standards of AS9100 compliance, you will want to be compliant with DCAA standards.

What is the DCAA?

The Defense Contract Audit Agency, or DCAA, is the agency that provides audit services for the U.S. Department of Defense. They act as overseers that ensure government and military contracts are kept on budget, to not waste tax dollars.

What comes before a DCAA audit?

Before you can worry about a full-on DCAA audit, your A&D business must pass pre-award surveys. These surveys are not as in-depth as full audits, but they will check to see if your company a) has enough financial capital and the means to take on a government contract and b) has a robust accounting system that will be able to keep track of different itemized costs associated with a government contract.

An ERP system with procedures that your employees buy into will set you up for success when bidding for a government contract from the U.S. military.

What costs need to be organized for DCAA compliance?

Because the DCAA audit is essentially a robust check on everything financial with your company, the more specific your accounting is the better. Broadly, DCAA auditors are looking for different types of costs, like direct costs, allowable costs, unallowable costs, and cost pools. If you employ hourly employees, it is crucial that exact ours and wages are documented. You can see the full list of costs on the government’s Federal Acquisition Regulation website.

How can an ERP system help with DCAA Audits?

Just the nature of having an ERP system will not automatically guarantee DCAA compliance, but it will go a long way in helping you achieve it. Utilizing an ERP system will help keep your business organized and optimized. At Cre8tive Technology & Design, our team of experts can design and implement ERP solutions that will help you achieve DCAA compliance, and in turn bid for and complete government contracts.

Get in touch with one of our knowledgeable representatives to learn how we can help you.