Wednesday, November 16, 2011

The Importance of Adequate Proposal Submissions

The following information has been extracted from the instructions that DCAA (Defense Contract Audit Agency) provides to contracting officers on the proper procedure for requesting audits. It is instructive for contractors (and prospective contractors) because essentially, DCAA will not audit a proposal that has inadequacies. DCAA would prefer that contracting officers first determine whether contractor proposals are adequate before they send out a request for audit. Offerors could find themselves out of a job if they don't pay attention to the fundamental requirements of FAR Part 15.

Before requesting an audit, offerors/contractors’ proposals, claims, or other submissions should be adequately supported. It is in the buying commands best interest to obtain adequate proposals and submissions in order to fully protect the Government’s interests, to ensure receipt of timely and effective audit services, and to assist in performing the necessary cost or pricing analysis required to attain a fair and reasonable contract price. It is in the contractor’s best interest to provide adequate proposals and submissions in order to obtain timely contract awards, ensure funding is not lost or transferred elsewhere, and to help adhere to applicable regulatory requirements. DCAA auditors are required to obtain adequate proposals/submissions prior to starting an audit. FAR 15.403-4 sets forth those circumstances in which contractors are required to submit certified cost or pricing data. FAR 15.408, Table 15-2 provides instructions for submitting cost/price proposals when cost or pricing data are required. The DCAA Forward Pricing Adequacy Checklist (located at is a valuable tool in assessing the adequacy of all types of offeror/contractor submissions.

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