Why Can’t Contractors Perform Their Own Incurred Cost Audits? | PNWC’s Government Contracting Update

There has been a lot of discussion lately about the state of incurred cost audits and more specifically, DCAA’s (Defense Contract Audit Agency) ability to complete them in a timely manner. DCAA for its part, is subject to the unpredictability of Federal budgets, hiring freezes, and attracting qualified workers. In recent Congressional testimony, the DCAA Director worried that recent gains in reducing the backlog of incurred cost audits could evaporate because of hiring freeze imposed on them by the current administration. Recently we’ve been discussing proposed legislation that would require the Department of Defense to outsource at least 25 percent of incurred cost audits.

Source: PNWC’s Government Contracting Update: Why Can’t Contractors Perform Their Own Incurred Cost Audits?