The Defense Contract Audit Agency issued guidance that states contractors who are approved for direct billing need no longer submit the first voucher of a new contract to DCAA for review and approval.  Rather, contractors are allowed to submit the first voucher directly to the disbursing office and provide a copy of the first voucher to the cognizant DCAA office within five days of submission to the disbursing office.  DCAA says the purpose of submitting the first voucher was so they would become aware of award of new contracts but now there is sufficient notification through other procedures followed by acquisition offices and contracting officers.  The new guidance is touted as improving economies and efficiencies of the direct billing program and improving cash flow for contractors.  DCAA auditors during their annual review of paid vouchers will be required to insure copies of the first vouchers are sent to the appropriate DCAA office and if not, are instructed to cite contractors for a billing system deficiency (MRD 01-PPD-071(R).

{TAG_FORM_TITLE}