This year's report offers a glimpse into DCAA's now organizational structure which had basically remained unchanged since the Agency was formed in 1965. There is still a Headquarters. The number of Regional Offices has been reduced from five to four. The most significant change however is the establishment of four Corporate Audit Directorates (CADs). CAD are responsible for overseeing the audits of select major contractors. Formerly, these major contractors were covered by many different branch and sub-offices throughout the country.
The report focuses heavily on DCAA's successes during the year which include reducing the incurred cost audit backlog from 21,000 in 2011 to 4,700 in 2016., achieving net savings of $3.6 billion and returning $5.70 to the Government for every dollar it spends.
The section of the report that we and most contractors are interested is recommendations to improve the audit process. This year, the Agency expressed a desire to become more involved in the legislative processes impacting the Agency. Also, they Agency yearned for assistance in maintaining a steady level of staffing. It takes a long time to recruit, train, and develop audit staff but the on-again off-again nature of hiring freezes presented a major barrier and hindered its ability to accomplish its mission. There is no sense of self-reflection in DCAA "recommendations". Apart from Congress's muddling, everything is fine.
DCAA's conclusion is this:
DCAA is an important member of the acquisition community with a unique and valuable mission. Our new organization structure will increase communication and coordination with major defense contractors while allowing our regional directors to focus on small and mid-sized contractors. We will continue to develop innovative ways to improve the audit process and make our services more responsive to the needs of acquisition community. We are ready for the challenges of the future and look forward to continuing to serve the warfighter and taxpayer.