Section 809 Panel - Recommendation #15 - Clarify and Streamline the Definition of and Requirements for an Adequate Incurred Cost Proposal to Refocus the Purpose of the Department of Defense's Oversight

Abstract

The term incurred cost proposal is not defined within federal acquisition regulations, the effect of which has been to create unnecessary burdens on both the government and contractors. In recent years, the Defense Contract Audit Agency (DCAA) began auditing direct costs, as well as indirect costs, during its incurred cost audits. DCAA should not be auditing direct contract costs unless requested to do so by the contracting officer as set forth in the Federal Acquisition Regulation.