DCAA

The Defense Contract Audit Agency (DCAA) is a United States Department of Defense agency that provides auditing services to the DoD and other authorized entities. Its mission is to perform audits of DoD contracts and subcontracts to ensure that costs are accurate, allowable, and compliant with applicable laws, regulations, and standards.

Established in 1965, DCAA conducts audits of contractor cost proposals for new contracts, forward pricing rate proposals, and incurred-cost submissions; it evaluates contractor internal control systems and assesses compliance with the Cost Accounting Standards (CAS) and the Federal Acquisition Regulation (FAR). The agency also audits contractor billing, price reasonableness, and contract closeout actions to support effective contract administration and accountability.

The agency is headed by a DCAA Director who reports to the Under Secretary of Defense (Comptroller)/Chief Financial Officer. DCAA operates a network of field audit offices across the United States and in other locations to support DoD components, including collaboration with the Defense Contract Management Agency (DCMA) in procurement and contract administration.

In pursuit of accountability, DCAA publishes audit reports and recommendations aimed at improving contractor programs and DoD contract administration. The agency has pursued reform and modernization efforts to enhance audit quality and timeliness, while maintaining its role as an independent auditing entity within the DoD.