10 Keys to Evaluating DCAA Compliant Accounting Software

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Filed Under: Employee Time Recording, Contract Management, Government Contracting Thought Leadership, Program Management, Costing, Billing

What are the 10 keys to Evaluating DCAA Compliant Accounting Software?

Let's approach this on a question and answer basis.

Q: Who is the DCAA?

A: The DCAA is the Defense Contract Audit Agency. It was established as a separate agency of the Department of Defense in July 1965 and 0perates under the control of the Under Secretary of Defense.

Q: What is the organization's goal?

A: Their charter is to perform Department of Defense (DoD) contract audits and provide accounting and financial advisory services to other Government agencies as appropriate.

Q: What functions does DCAA perform?

A: The DCAA will perform pre or post award surveys to evaluate the contractor's ability to perform against a contract. DCAA is concerned with identifying and evaluating all activities that contribute or have an impact on proposed or incurred costs of Government contracts.


  • Evaluates contractors' financial policies, procedures, and internal controls.
  • Performs audits which identify opportunities for contractors to reduce costs.
  • Reviews Internal Control Systems.
  • Audits Management Policies.
  • Requires Accuracy and Reasonableness of Cost Representations.
  • Ensures Adequacy and Reliability of Records and Accounting Systems.
  • Reviews Financial Capability.
  • Ensures Contractor Compliance with Contractual Provisions having Accounting Significance such as Cost Principles CFR (FAR, Part 31), Cost Accounting Standards CAS (FAR, 52.230-2), and Truth in Negotiations Act TINA (FAR 52.215-10, 11, 12, 13).

The fines imposed on a contractor for failing a DCAA audit can be significant. The DCAA issues findings that the contractor must address. If the contractor is found to have mischarged against a contract, they may be subject to fines or even imprisonment. If the contractor has direct submission approval this may be revoked resulting in reduced cash flow due to aging AR.

DCAA compliant accounting systems are a must have in today's government contracting marketplace to not only ensure government compliance but, to increase operating effeciencies by enabling transparency to the lowest levels of your business.   Business process automation provides for lower overheads, increased margins and consistency in company operations.   With all of this said, what criteria to we employ in choosing a government contract accounting package?

10 keys to evaluating DCAA compliant accounting software

  • Time Entry per DCAA regulations
  • Expense Entry per DCAA/government requirements – JTAR etc.Segregating
  • Ability to Post Direct and Indirect Costs
  • Segregating Allowable vs. Unallowable Costs and not including Unallowable Costs on Government Contracts
  • Identifying Cost Pools and Allocations for Provisional versus Actual Indirect Rates including Year-to-Date true-ups
  • Accurate Billing and Billing Formats for All Contract Types including Retroactive Rate Adjustments
  • Billing Cost Backup Linking Original Cost Documents
  • General Ledger Postings and Job Costing
  • CAS compliance including Actual Labor Costing and Total Time Accounting where applicable
  • Contract Flow Down to Subcontractors

How can Dassian help?

  • Our GOVCON enterprise solution is pre-configured to support end-to-end business process for government contractors such as Actual Labor Costing, CAS compliance, Time & Expense, HR, Manufacturing with Actuals, Procurement and Subcontract, Contract Management, Contract Flow Down, Program Management, Earned-Value Management, Government Billing and Incurred Cost Reporting.
  • Dassian has high quality talent who knows the Government Contracting business.   Dassian product managers and consultants have originated from the Government Contracting industry and have an average of 15 years' experience in Government Contract Accounting
  • Our GOVCON solution can be implemented in as little as six months and is priced to serve the SMB marketplace.  Dassian's GOVCON pricing is consistently lower than our competitor and can be implemented 50% faster bringing a shorter ROI and increased cost savings.
  • Dassian's GOVCON solution has been proven to enable government compliance with DCAA and FAR regulations.   Our GOVCON customers are consistently passing DCAA audits.

What does Dassian's GOVCON include and what value does it offer?

It Enables Government Compliance in the following areas;

–      Job Costing

–      Cost Accounting Standards / Indirect Costing

–      Labor Accumulation

–      Timekeeping

–      Billing

–      Contract Flow Down to Suppliers

–      Earned Value Management

–      Incurred Cost Reporting

Supports All Major End-to-End Business Processes.   Dassian GOVCON can run both commercial and government business processes in one environment.  Provides Transparency and Profitability at the Lowest Levels of your business.

Call or email Barbara McElnea to discuss how Dassian can provide value to your company.   bmcelnea@dassian.com,   see our contact us page for more details.