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Government contracting · DCAA

DCAA compliance: accounting systems that pass the first time.

Before a cost-type contract award, during performance and at close-out, DCAA and contracting officers expect an adequate accounting system and supportable costs. We set up, review and defend contractor systems.

Forms & standards
FAR 16.301-3SF 1408DFARS 252.242-7006FAR 52.216-7FAR Part 31Cost Accounting Standards

Serving United States, Virginia, Washington, DC, Maryland.

What we handle

What DCAA looks for

Before a cost-reimbursement award, the government must find the contractor's accounting system adequate, often using the SF 1408 checklist. That requires segregating direct and indirect costs, accumulating costs by contract, timekeeping that records labor daily by charge code, identifying unallowable costs and producing billings that tie to the books.

During performance, contractors bill using provisional rates, file annual incurred cost submissions under FAR 52.216-7, and larger defense contractors must maintain business systems under DFARS 252.242-7006. We design indirect rate pools, prepare submissions and respond to DCAA audit findings.

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  • SF 1408 readinessPre-award accounting system reviews and remediation.
  • TimekeepingPolicies, training and system setup that meet DCAA expectations.
  • Indirect ratesFringe, overhead and G&A pool design and forward pricing.
  • Provisional billing ratesRate proposals and annual updates.
  • Incurred cost submissionsAnnual ICS preparation and DCAA support.
  • Audit supportResponding to DCAA findings and contracting officer questions.

Where we help

Rules that matter

Regulation

FAR 16.301-3

Cost-reimbursement contracts require an adequate accounting system.

Form

SF 1408

The pre-award survey checklist for accounting system adequacy.

Clause

FAR 52.216-7

Requires annual incurred cost submissions within six months of fiscal year end.

Clause

DFARS 252.242-7006

Accounting system criteria for covered defense contractors.

Our approach

How the engagement runs.

Review

A senior advisor reviews your facts and documents.

Plan

Scope, fees and timeline in an engagement letter.

File

Returns, elections and forms prepared and reviewed.

Support

IRS contact and planning all year.

Questions

Frequently asked

If your question isn't here, call (703) 880-8412 and you'll reach a person.

How do we pass an SF 1408 review?

By having written policies, segregated direct and indirect costs, job cost tracking, compliant timekeeping and unallowable cost controls in place before the review.

Can we use QuickBooks?

Many small contractors do, with the right setup, chart of accounts and timekeeping integration. Larger contractors often move to a GovCon system.

When is our incurred cost submission due?

Within six months after fiscal year end for contractors with flexibly priced contracts.

Can you help after a DCAA finding?

Yes. We analyze the finding, fix the underlying issue and prepare the response.

Latest updates

DCAA & GovCon

All DCAA & GovCon updates

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