Introduction

2. Introduction Background Information Denver Branch Office • Mobile Teams • Ball Aerospace Suboffice • Lockheed Martin Astronautics Suboffice • Colorado Springs Suboffice E-Mail dcaa-fao3121@dcaa.mil Telephone No. (303) 969-5000

3. Organization 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 80235 • Audit area includes the entire State of Colorado and Wyoming • Staffing • Branch Manager • 8 Supervisory Auditors • 55 Auditors • 6 Administrative Staff

5. DCAA PamphletInformation for Contractors(www.dcaa.mil\dcaa 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 DefenseAcquisition Deskbook(www.deskbook.osd.mil) • Automated reference tool that provides acquisition information • Federal Acquisition Regulations • Directory of DCAA Offices • DCAA Contract Audit Manual • Information for Contractors

7. DCAA Responsibilitiesand 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 ofEmphasis • 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 SystemReview • 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

13. QUESTIONS