Canadian Companies with DoD Contracts and Subcontracts

The Canadian Government (specifically Public Works and Government Services Canada or PWGSC) has been performing contract audits U.S. contracts and subcontracts awarded to Canadian companies. That is about to change. Beginning January 2013, the Canadian Government will no longer perform contract audits of contracts and subcontracts awarded to Canadian firms. Any audits and pricing evaluations that need to be performed, will need to be addressed by U.S. authorities.

The Department of Defense has now addressed this policy shift from the Canadian Government. For DoD contracts and subcontracts, the Defense Contract Audit Agency (DCAA) and the Defense Contract Management Agency (DCMA) will conduct audits as delineated in DFARS PGI 215.404-2(c). DCAA will perform proposal audits on fixed-price proposals exceeding $10 million and on cost-type proposals exceeding $100 million. Regardless of the amount being proposed, DCAA also will perform proposal audits if assistance is requested by a DCAA office. DCAA may also perform proposal audits under the audit threshold if exceptional circumstances are explained to the contracting office in the request for audit.

There is no word yet on how other Governmental agencies plan to address their audit/pricing needs when it comes to contracts awarded to Canadian companies.