DOD Contract Partners: What is the Difference Between DCMA vs. DCAA?
The U.S. Department of Defense (DoD) upholds contract standards for hundreds of thousands of contracts each year via several federal agencies. Two of the closest agencies to the DoD are often related, but have vastly different requirements. When it comes to the DCMA vs. DCAA, contract partners will need to meet specifications for each agency, in order to maintain compliance and complete contracts in adherence with federal guidelines.
Navigating the complexities between DCMA compliance and DCAA compliance is not always easy.
What is the DCMA?
DCMA stands for “Defense Contract Management Agency”, the federal arm responsible for overseeing product delivery for equipment, products, and components that the U.S. military and related warfighters use. The DCMA is in charge of contract administration for the DoD, additional federal organizations, and certain global allies, beginning in the early acquisition stages of a contract, to the analysis after contracts have been completed.
The DCMA provides the following services and many others:
- Pre-contract award guidance: Timeline and federal requirement assistance, risk reduction, contract recommendations, pricing evaluation, system, schedule, and process planning.
- Contract obligation analysis: Final approval on invoices, training for various applications, oversight on invoice issues, contract change approval, system, schedule and process review (e.g., Cost Accounting, Earned Value Management, etc.)
- Contract review: Contractor and product performance analysis, on-site representation, contract close-outs, overall contract administration.
What is the DCAA?
The Defense Contract Audit Agency (DCAA) is often confused with the DCMA. It is a separate agency that provides audit services to the DoD and other federal partners. The DCAA also monitors contract accounting.
Achieving DCMA Compliance
Adhering to DCMA compliance standards and reviews completed by a DCMA contract administrator can be difficult without the proper tools in place. That’s where a powerful resource like the Epicor Kinetic ERP comes into play. With Epicor ERP, your technology and support team are set to master DCMA compliance requirements, including:
- Adhering to standards and accounting for pricing, materials, and project scope.
- Formalizing and reporting invoice information, inventory, and contract changes correctly and efficiently.
- Following all contract management regulations, including updated compliance, year after year.
- Providing detailed, scalable information on performance, with actionable data metrics with easy-to-use custom dashboards.
- Completing contracts under the resource allocation provided.
Audit Requirements
By following DCMA standards with the support of Cre8tive Technology and Design, contractors have necessities in place, leading up to the auditing process. There is no formal DCMA audit, but rather, requirements that are met in preparation for audits by the DCAA.
The DCAA completes several different types of audits that address pricing, systems, and specialty needs. Resources are also provided to businesses throughout the auditing process. You can view our blog within the series regarding the five types of DCAA audits for more information.
Article by Cre8tive Technology & Design
Cre8tive Technology & Design are an Epicor partner specializing in aerospace & defense ERP solutions.
For more information about the services Cre8tive offer (including help fulfilling DCAA audit standards or meeting compliance requirements, including work required by any DCMA contract administrator) visit www.CTND.com
Cre8tive is a Gold Vendor Member of the Epicor Users Group. The EUG do not endorse or recommend any software or service and it is up to members to ascertain the suitability of a product or service for their requirements.