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Program Assessment


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Defense Contract Audit Agency

Defense Contract Audit Agency's (DCAA) purpose is to efficiently perform all necessary contract audits for the Department of Defense (DoD) and provide accounting and financial advisory services regarding contracts and subcontracts to all DoD components responsible for procurement and contract administration.


What This Rating Means


This is the highest rating a program can achieve. Programs rated Effective set ambitious goals, achieve results, are well-managed and improve efficiency.
  • DCAA has a clear purpose and addresses a specific need. In FY 2006, DCAA performed over 35,000 reviews, including 15,581 incurred cost and 9,015 pre-award proposal audits. DCAA reported $2.3 billion in net savings as a result of audit findings, or approximately 2% of total dollars audited. These funds were ultimately returned to the Treasury or put to better use by DoD.
  • DCAA monitors and collects performance data to provide timely and cost-effective audit services. Key performance measures include audit timeliness. DCAA has steadily increased its timely completion rate from 94% in FY 2001 to 99% in FY 2006. Contract dollars audited per hour have also increased from $50,000 per hour in FY 2001 to $67,500 per hour in FY 2006.
  • DCAA coordinates with DoD procurement offices and contract administration officials on all audit requests. DCAA has placed over 100 Financial Liaison Auditors at over 70 locations throughout the country to facilitate coordination between DoD procurement offices and auditors to provide advice and consultation on contractor's cost representations and related matters.

Improvement Plan

About Improvement Plans

We are taking the following actions to improve the performance of the program:

  • Monitoring progress on accomplishment of the DCAA and Defense Contract Management Agency priority audits goal.
  • Achieving the Cost Per Direct Audit Hour goal.
  • Using Financial Liaison Auditors to obtain customer feedback on audit services provided and identifying areas needing improvement.

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