Appeal Steps After DCAA Issues a Form 1

Q. What can we do when DCAA issues a final report and Form 1 for questioned costs.

A. You used to be able to appeal, with considerable success, DCAA’s position to the ACO who was anxious to resolve issues but that is much less possible today where ACOs almost always accept the auditor’s opinion. We have been finding more success with contractors filing an appeal within 90 days of the CO’s final decision with one of the contract appeals boards (no filing charges) and then having attorneys negotiate settlements with agency attorneys short of the expensive litigation process. It seems like some DCMA attorneys are taking the role the ACO used to take in attempting to resolve cost allowability and allocability issues.