Josef Kamara, CPA, CISSP, CISA · Updated May 6, 2026 · 1 minute read

DCAA

The Defense Contract Audit Agency, the DoD field activity that performs contract audits on behalf of all federal agencies that buy from defense contractors. DCAA examines contractor accounting systems, incurred costs, forward pricing rates, and compliance with the Cost Accounting Standards. It does not award or terminate contracts; it issues audit reports that contracting officers and DCMA administrative contracting officers rely on to negotiate price, settle final indirect cost rates, and resolve allowability disputes. DCAA reports to the Under Secretary of Defense (Comptroller) and operates under the Contract Audit Manual (DCAAM 7640.1).