Government Contractor (DCAA & FAR) Audit

A government contractor DCAA and FAR audit examines whether a contractor’s costs comply with the Federal Acquisition Regulation, including the FAR Part 31 rules on allowable costs and, where applicable, the Cost Accounting Standards. Each year contractors submit incurred cost proposals and rely on provisional and indirect rates that must be supported. The Defense Contract Audit Agency, or DCAA, performs the government’s own audits of these submissions. Modus helps you prepare for that scrutiny and get independent audits and agreed-upon procedures so your numbers hold up.

• Contractors with cost-reimbursable or time-and-materials federal contracts.
• Businesses required to file annual incurred cost submissions.
• Contractors subject to the Cost Accounting Standards.
• Firms setting or truing up provisional and indirect rates.
• Companies preparing for a DCAA audit or a pre-award accounting system review.

• Review of costs for allowability under FAR Part 31.
• Preparation and review of incurred cost submissions.
• Indirect and provisional rate analysis and support.
• Accounting system readiness against DCAA expectations.
• Independent audits and agreed-upon procedures on cost representations.

Cost data is dense and rule-bound, which is where Modus makes the biggest difference. Modus ingests your cost pools, ledgers, and rate calculations, ties each conclusion to source documents, and surfaces allowability issues before DCAA does. That means up to about 40% less compliance time and readiness in about four weeks, so a government audit does not catch you flat-footed. Modus makes getting ready faster and cleaner; DCAA performs the government audit and any independent audit is issued by an independent firm.

• Working knowledge of FAR Part 31, CAS, and DCAA expectations.
• Source-linked support that backs your submissions under government review.
• Up to about 40% less time spent on compliance preparation.
• Top-firm rigor at a middle-market price.