The Defense Contract Audit Agency (DCAA) performs all contract audits for the Department of Defense (DoD). This audit includes Estimating System Reviews (ESRs).
Even though ESRs aim to improve the accuracy and reliability of government contract proposals, going through one is tedious and nerve-wracking. And failure leads to some steep consequences:
Now that we have your attention, let’s talk about ways to avoid all these penalties.
**Spoiler Alert**
If you commit to documenting everything, training and managing personnel properly, and following through with system improvements, you will meet all DCAA compliance requirements.
It may sound funny, but the first thing DCAA auditors do is audit your audits.They study the frequency, scope, and corrective actions taken during each of your company’s own estimating system reviews.
DCAA compliance tips:
Know your management style
DCAA auditors will verify your managers are managing appropriately. They evaluate proposal management oversight and confirm there is a clear chain of command (and paper trail) for approvals.
DCAA compliance tips:
Keep internal skills current
DCAA auditors will peek into your training sessions. They take note of lessons learned and how new information is dispersed to the team.
DCAA compliance tips:
Organize your business records
DCAA auditors will look into your past. They select and evaluate recent pricing proposals for compliance with established procedures.
DCAA compliance tips:
Don’t get caught off guard. Start preparing now.
If you operate under the assumption the DCAA will audit each proposal you prepare, you’ll likely stay compliant when the auditors come knocking. Consider using a basis of estimate software that has a rate traceability system with a history of passing DCAA audits—like BOEMax.
Request a demo to see the proposal software in action.