DCAA Series: What is the Difference Between DCMA vs. DCAA?
The U.S. Department of Defense (DoD) upholds contract standards for hundreds of thousands of contracts each year via several federal agencies. Two of the closest agencies to the DoD are often related, but have vastly different requirements. When it comes to the DCMA vs. DCAA, contract partners will need to meet specifications for each agency, in order to maintain compliance and complete contracts in adherence with federal guidelines. Cre8tive Technology and Design has decades of experience helping businesses fulfill DCAA audit standards. We also provide powerful ERP software solutions that are designed with processes and modules that make it easy to meet compliance requirements, including work required by any DCMA contract administrator.
How Cre8tive Can Help
Navigating the complexities between DCMA compliance and DCAA compliance is not always easy. We have created a full DCAA series of resources, but in this blog, we will primarily focus on how you can best achieve DCMA compliance and understand how this agency’s requirements differ from the DCAA.
Ensure you are delivering your projects on time, on budget, and with performance standards met by partnering with Cre8tive. We have a dedicated team of professionals who know the intricacies of the DCMA DoD standards process, especially for those who operate in the aerospace and defense industry.
What is the DCMA?
DCMA stands for “Defense Contract Management Agency”, the federal arm responsible for overseeing product delivery for equipment, products, and components that the U.S. military and related warfighters use. The DCMA is in charge of contract administration for the DoD, additional federal organizations, and certain global allies, beginning in the early acquisition stages of a contract, to the analysis after contracts have been completed.
The DCMA provides the following services and many others:
- Pre-contract award guidance: Timeline and federal requirement assistance, risk reduction, contract recommendations, pricing evaluation, system, schedule, and process planning.
- Contract obligation analysis: Final approval on invoices, training for various applications, oversight on invoice issues, contract change approval, system, schedule and process review (e.g., Cost Accounting, Earned Value Management, etc.)
- Contract review: Contractor and product performance analysis, on-site representation, contract close-outs, overall contract administration.
What is the DCAA?
The Defense Contract Audit Agency (DCAA) is often confused with the DCMA. It is a separate agency that provides audit services to the DoD and other federal partners. The DCAA also monitors contract accounting.
In addition to helping you meet DCMA requirements, Cre8tive Technology and Design collaborates with you to address the specific compliance standards set forth by the DCAA. You can learn more about the DCAA and what it takes to address DCAA compliance needs in our related resource blog.
Achieving DCMA Compliance
Adhering to DCMA compliance standards and reviews completed by a DCMA contract administrator can be difficult without the proper tools in place. That’s where a powerful resource like the Epicor Kinetic ERP comes into play. Cre8tive is an Epicor Platinum partner, and we are the preferred choice for ERP integration for A&D contractors.
With Cre8tive and Epicor ERP, your technology and support team is set to master DCMA compliance requirements, including:
- Adhering to standards and accounting for pricing, materials, and project scope.
- Formalizing and reporting invoice information, inventory, and contract changes correctly and efficiently.
- Following all contract management regulations, including updated compliance, year after year.
- Providing detailed, scalable information on performance, with actionable data metrics with easy to use custom dashboards.
- Completing contracts under the resource allocation provided.
By following DCMA standards with the support of Cre8tive Technology and Design, contractors have necessities in place, leading up to the auditing process. There is no formal DCMA audit, but rather, requirements that are met in preparation for audits by the DCAA.
The DCAA completes several different types of audits that address pricing, systems, and specialty needs. Resources are also provided to businesses throughout the auditing process. You can view our blog within the series regarding the five types of DCAA audits for more information.
Partner with Cre8tive
Seeking assistance with DCMA compliance, DCAA audit requirements, or are you looking for a modern ERP that will support your business when working with these agencies? Get in touch with the Cre8tive team today and partner with us for a custom ERP integration that helps you exceed DCMA and DCAA standards.
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