View from Senior In-House Executives: Preparing for Intensive Incurred Cost Audit Backlog Reduction Initiatives Post-NDAA

With increasing audit pressure, now is the time to implement best practices into your business systems, forward pricing rate proposals and incurred cost submissions.

Since the passage of the most recent National Defense Authorization Act (NDAA), government contractors must be prepared for the implications of faster and potentially multi-year incurred cost audits as the backlog is reduced. The NDAA is so focused on reducing the backlog that the DCAA is currently prohibited from providing non-DOD agency audit support until the incurred cost audit backlog is reduced to less than 18 months of the current incurred cost inventory. From business systems audit preparation to best practices in teaming agreements, now is the time to implement the most effective strategies for maximizing allowability and mitigating questioning from your contracting officer.

• Given the most recent NDAA priorities, what are companies doing now to stay on top of the DCAA's changing priorities?
• Understanding the DCAA Low Risk Sampling Process and how it will affect your pending audits.
• Best practices for the possibility of simultaneous, multi-year audits, particularly as it relates to records management and document retention in order to meet DCAA's expectations.
• What are the implications of the speedier audit processes?
• Moving forward, what are the best practices and techniques for incurred cost submissions to reduce the risk of cost questioning.
• Practical tips for the final voucher submission process to reduce the risk of questioning.
• Alternative approaches to settling Incurred Cost Proposals in lieu of a DCAA audit.