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2 Introduction Background Information Denver Branch Office Mobile Teams Ball Aerospace Suboffice Lockheed Martin Astronautics Suboffice Colorado Springs Suboffice Telephone No. (303)

3 Organization Denver Mobile Larry Koppenhaver S/A Ball Aerospace Suboffice Loren Merchant S/A Lockheed Martin Suboffice Vicki DeLeon S/A Lockheed Martin Suboffice Adrienne Montgomery S/A Colorado Springs Suboffice Carol Darby S/A

4 Denver Branch Office 7112 West Jefferson Avenue, Suite 200 Lakewood, CO Audit area includes the entire State of Colorado and Wyoming Staffing Branch Manager 8 Supervisory Auditors 55 Auditors 6 Administrative Staff

5 DCAA Pamphlet Information for Contractors ( publications) To assist contractors in understanding applicable requirements To help ease the contract audit process Examples in pamphlet are intended solely to provide better insight into the procurement process and should not be construed as uniform guides

6 DoD Defense Acquisition Deskbook ( Automated reference tool that provides acquisition information Federal Acquisition Regulations Directory of DCAA Offices DCAA Contract Audit Manual Information for Contractors

7 DCAA Responsibilities and Duties Perform all needed contract audits for DoD Provide accounting and financial advisory services Service relates to negotiation, administration and settlement of contracts and subcontracts Service provided to others (i.e., NASA, Corps of Engineers, Dept. of Energy, Treasury, etc.)

8 DCAA Areas of Emphasis DCAA involvement determined by the type of contract Most effort on FFP type contracts takes place during the proposal stage rather than the incurred cost stage Reverse is true on flexibly priced contracts The allowable costs properly included in the final pricing of flexibly priced contracts are determined after they are incurred and audited

9 Preaward Surveys Evaluation made by contract administration office of prospective contractor’s ability to perform a proposed contract Surveys may cover technical, production, quality assurance, financial capability and the accounting system DCAA reviews the financial capability and accounting system

10 Financial Capability Review Determines whether finances are adequate to perform the contract Information reviewed includes: Financial Statements Cash Flow forecasts Loan Agreements Aging of Accounts Receivable and Payable DCAA makes a recommendation to the contracting officer regarding financial resources to perform the contract

11 Accounting System Review To determine the adequacy and suitability of the accounting system and practices for accumulating costs by contract

12 Accounting System Review Some areas covered in an Accounting System Review include an assessment to determine if: Direct costs are properly segregated from indirect costs Direct costs are identified and accumulated by contract Adequate time keeping procedures must be in place The labor distribution system charges direct and indirect labor to appropriate cost objective or overhead pool Indirect costs are allocated to Government contracts based upon relative benefits received or other equitable relationship Costs are accumulated under general ledger control Unallowable amounts are excluded from costs charged to Government contracts

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