A Virginia-based defense contractor learned this lesson at a cost of $23 million in questioned costs and an 18-month suspension from federal contracting. Their crime? Implementing a weekly time entry system that violated fundamental DCAA timekeeping requirements under 48 CFR 31.201-4 and Cost Accounting Standard (CAS) 418. The Defense Contract Audit Agency (DCAA) rejected their…
A $47 Million Wake-Up Call: When DCAA Compliance Goes Wrong In 2023, defense contractor Raytheon Technologies agreed to pay $47 million to settle allegations that it violated the False Claims Act by inflating costs charged to government contracts over a six-year period from 2013 to 2019. The Department of Justice investigation revealed that Raytheon failed…
Maintaining DCAA compliance is crucial for 8(a) contractors engaged in government contracts, as it ensures adherence to a stringent set of standards and regulations necessary for successful contract execution. Understanding these compliance requirements and implementing effective timekeeping practices are essential for avoiding potential pitfalls and ensuring smooth operations. Hour Timesheet offers an invaluable solution with…
In September 2022, a major aerospace contractor faced $47.2 million in penalties when DCAA auditors discovered the company had failed to submit required incurred cost submissions for three consecutive years. The contractor’s inadequate year-end preparation and failure to maintain compliant documentation under FAR 52.216-7 resulted in contract suspension just as the new fiscal year began….
Ensuring your timekeeping system meets DCAA (Defense Contract Audit Agency) standards is critical for government contractors. Hour Timesheet offers built-in features that support compliance, transparency, and audit readiness. In this guide, we’ll walk through each key feature, where to find it, and how to configure it properly—with screenshots to help you every step of the…
In 2019, a defense contractor based in Virginia faced a substantial penalty of $12.3 million. This was a consequence of DCAA auditors uncovering systematic labor mischarging across several cost-plus contracts. The contractor’s inadequate timekeeping system and failure to maintain proper supporting documentation, as required under FAR 31.201-3, led to questioned costs. This ultimately resulted in…
Understanding the implications of the latest federal budget is crucial for cost-plus contractors, particularly those working with government contracts. The federal budget introduces changes that can significantly impact compliance, auditing requirements, and financial management strategies. These shifts emphasize the need for reliable and comprehensive timekeeping solutions that ensure DCAA compliance and efficient cost management. Hour…
Timesheet errors can have a significant impact on businesses, leading to unexpected financial consequences and operational inefficiencies. These mistakes not only result in direct costs such as overpayments and compliance fines but also contribute to indirect costs like decreased productivity and strained client relationships. For government contractors, the stakes are even higher due to strict…
In today’s fast-paced business environment, ensuring compliance with audit requirements and maintaining accurate documentation can be a formidable challenge, especially for government contractors. With the complexities involved in audit preparation and the stringent standards set by entities like the Defense Contract Audit Agency (DCAA), businesses are turning to innovative solutions to streamline these processes. AI…
Navigating the complex landscape of DCAA (Defense Contract Audit Agency) timekeeping requirements is essential for government contractors striving to maintain compliance and secure contracts. Understanding these requirements is vital as they ensure accuracy and accountability in tracking employee hours, a core component of federal contracting. By mastering DCAA timekeeping, organizations can avoid costly penalties and…