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Preparing for a DCAA audit means having your accounting systems and cost data organized enough to prove government contract costs are allowable, reasonable, and properly allocated. It’s a tedious process of reviewing timekeeping records, indirect rates, and billing systems to ensure everything matches federal regulations. Getting ahead of it early can save a lot of stress when auditors start digging through your financials.
The federal acquisition regulation, or FAR, is the set of rules that U.S. government agencies follow when buying goods and services, aiming to ensure fairness, transparency, and competition while getting the best value for taxpayer money.
Sourcing strategies involve how companies find, evaluate, and choose suppliers for the goods and services they need. Sometimes it's about going for the cheapest option to keep costs low, other times it's about building long-term relationships with reliable partners who can innovate with you. The smartest approaches often mix local and global suppliers to balance speed, cost, and risk.