Whitepaper: The Audit World's Biggest Myths
Download Now
close
DCAA Sustainment Rates, Audit Timelines & OTA Government Contracts - Edition 9B
With DCAA's FY2024 data now in focus, contractors are getting clearer insights into what sticks in an audit—and what doesn’t. In this week’s Capital Edge Tip Line, CEO Chad Braley breaks down the agency’s audit sustainment rates, completion timelines, and growing oversight into OTA government contracts. He also highlights where audit activity is rising in other agencies, including HHS.
???? What’s happening? Nearly 49% of DCAA audit exceptions were sustained by contracting officers across all categories in FY2024.
???? Breakdown by audit type:
???? What it means for you:
???? Action Item: Treat every audit finding seriously. Even if the audit occurred years ago, current sustainment decisions may still apply.
???? What’s happening? Audit cycle times remain long, particularly for complex systems reviews.
???? Average durations:
???? Chad’s take: A low-risk letter from DCAA does not equal a clean bill of compliance. Many contractors assume approval when they’ve only passed the adequacy checklist.
???? Action Item: Prepare for extensive durations. Keep your documentation current, even if your last contact from DCAA was a simple memo.
???? What’s happening? DCAA evaluated over $550 million in OTA costs in FY2024, despite their FAR-exempt status.
???? What it means for you:
???? Action Item: Don’t rely on OTA exemptions. Structure records and reporting as if the agreement will be audited.
???? What’s happening? Other agencies like HHS are leaning on third-party auditors to scrutinize historic contract activity.
???? Example: HHS recently initiated audits on a 2020 CAS change with a $75,000 cost impact—years after the fact.
???? Action Item: Be proactive in documenting cost changes and rate adjustments, even if years have passed. Third-party audits are expanding.
Stay Ahead with Capital Edge
Whether you're preparing for a business systems review or need help navigating OTA government contracts, Capital Edge is your trusted compliance partner.
???? Have Questions? Need Help?
Connect with Capital Edge Consulting for proven audit strategies.
???? Contact us today to discuss your strategy for staying tariff-ready.
Stay informed. Stay compliant. Stay ahead.
Capital Edge government contract consultants support Government Contractors and Federal Grant Recipients. Our consultants specialize in the regulatory compliance matters you need.
8521 Leesburg Pike Suite 425
Vienna, VA 22182