Hello All,

I was just wondering if it is going too far when the KO requests a copy of the DCAA audit report with proposal submission on a cost type contract. Shouldn't the letter from DCAA/DCMA stating that the cost accounting system/purchasing system is acceptable enough?

What happens if the vendor has the DCAA/DCMA letter, but does not have the audit report itself?

MustangBob,

I interpret your question as being: "When I submit a proposal for a cost type contract, the KO wants me to discuss the status of my business systems. Normally I provide a letter from DCAA/DCMA that states my business systems are acceptable. But this time the KO wants me to provide the original audit report(s) that supported the official determinations. I don't have the audit reports. What should I do?"

In my experience a status of systems letter on DCMA letterhead has been sufficient. Nobody has ever requested the actual audit reports. If a KO did request them, I would refer that KO to my cognizant ACO for business systems. The audit report(s) may be irrelevant, especially if the ACO overruled the functional specialist finding/recommendation and that position was sustained by the Board of Review.

You may ask: "But what if the KO demands I provide the audit report or else I will be found not to be a responsible offeror?"

In that case i would consult with a good attorney and consider filing an agency-level pre-award protest, because such a position may be unreasonable, especially if the audit report in question was overridden by the ACO or if the audit report was never provided to the contractor.

Hope this helps.

Thank you H2H! Your interpretation of my question was spot on and the answer provided was very helpful!