Realignment of Responsibilities Between DCAA and DCMA
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Realignment of Responsibilities Between DCAA and DCMA 
government contractor and technology  business advisory 

 

By: Katherine Crawford
Abstract:
The Office of the Under Secretary of Defense for Acquisition, Technology, and Logistics recently released a memorandum establishing a new relationship between the Defense Contract Audit Agency (DCAA) and the Defense Contract Management Agency (DCMA).  This memorandum provides better guidance for obtaining greater efficiency through work alignment and reduction of redundant functions performed by DCAA and DCMA.  A brief summary of the memo is below:

 

  • Requests for field price audits on cost type proposals less than $100M and fixed type proposals under $10M will be sent to DCMA.  DCAA will be responsible for audits of proposals above these thresholds.  DCAA will perform assist audits on proposals of any dollar value if they are auditing the prime contractor.
  • DCMA will be responsible for issuing Forward Pricing Rate Agreements and Forward Pricing Rate Recommendations when they are the cognizant contract administration office.  The goal of this is to eliminate redundant work and ensure a single department rate position is provided to DCAA/DCMA customers at all times.
  • DCAA plans to stop performing Financial Capability Reviews and Audits.  DCMA will continue to conduct Financial Capability Reviews during their Pre Award Survey Process.
  • DCAA plans to discontinue performing regularly scheduled Purchasing System Audits.  DCMA will continue to perform Contract Purchasing System Reviews.
The memorandum provides better guidance for obtaining greater efficiency through work alignment and reduction of redundant functions performed by DCAA and DCMA.