DCAA vs Private Firm--Audit of Cost Proposals

It's been a number of years but I worked at an agency that resorted to private CPAs, mostly because DCAA was taking so long. Our experience was that private CPA firms performed the work much quicker and the advice and assistance provided was much better and helpful than DCAA. What surprised us was the overall cost wasn't much greater than DCAA - individual hour rates were more but the private CPAs took much less time so the bottom line wasn't a whole lot more.

I was reviewing a website of a world-wide renowned CPA firm and they indicated on their website that they have performed for Dept of State, Interior, Justice, and the VA. Several well-known firms have GSA contracts and the rates for a CPA were less than what we "pay" DCAA per hour. Obviously DCAA's rates include everything, whereas private firms add travel and other ODCs, etc., but hey, if they are able to complete an audit in 2-3 months versus DCAA's 4-6 months AND perhaps provide more bang for the buck service, response, info-wise; I'm trying to find out why more of the Government is not going this way. I suspect funding issues are a major issue.

I was reviewing a website of a world-wide renowned CPA firm and they indicated on their website that they have performed for Dept of State, Interior, Justice, and the VA. Several well-known firms have GSA contracts and the rates for a CPA were less than what we "pay" DCAA per hour. Obviously DCAA's rates include everything, whereas private firms add travel and other ODCs, etc., but hey, if they are able to complete an audit in 2-3 months versus DCAA's 4-6 months AND perhaps provide more bang for the buck service, response, info-wise; I'm trying to find out why more of the Government is not going this way. I suspect funding issues are a major issue.

Shickson, I don't know if you are with DoD, but the PGI has been amended so that contracting officer's are now advised that they should not request DCAA to do proposal audits unless the acquisition os for a FFP contract with a value ove $10M or a cost reimbursement contract with a value over $100M.

Thank you Retreadfed. I am within the DoD, and am aware of the PGI guidance. The actions contemplated deal with FMS and thus typically far exceed those amounts in either regard. My known (and rather large) hurdle will be dealing with DoDD 5105.36 and DoDI 7600.02 which direct/require DoD Agencies to utilize DCAA unless a waiver is granted by OAIG APO, IG DoD.

I'm hoping enough folks from outside DoD (within DoD would be a real pearl though) will reply with success stories and I in-turn can use this in satisfying the boss that we can expect at least as good a support from private CPA audits (in the interim until DCAA acquires sufficient manning to handle the workload within a reasonable amount of time). I think the answer is obvious, but I'd like the actual dialogue to support our case file.

Private firms have been doing the A-133 Audits for years. Never had a problem.