Responding to a Negative DCAA Finding
(Editor’s Note. We used to help teach a two day seminar each year entitled “Government Contract Audits and Resolving Audit Disputes.” One of the interesting topics covered, where instructors and students put forth examples from their experiences, was how to mitigate the impact of a negative audit position short of litigation. Though we have occasionally addressed this topic periodically in the past, recent significant changes in how DCAA and ACOs handle challenges to auditor opinions have made this issue more relevant than ever.
A negative finding by the Defense Contract Audit Agency is rarely good. Questioned costs, whether it follows audits of forward pricing actions, incurred cost, post award reviews or claims/terminations costs you money. Findings of inadequate accounting,estimating, billing and purchasing practices can include costly fixes, payment delays and prevention of future contract and subcontract awards.
