U.S. Defense Contract Audit Agency MRD: Early engagement of forward pricing price proposals and forward pricing rate proposals

Tom Reynolds


The U.S. Defense Contract Audit Agency (DCAA) posted to its website an MRD that is titled “Audit Alert on Early Engagement of Forward Pricing Price Proposals and Forward Pricing Rate Proposals” and dated January 26, 2023. The MRD discusses communication protocols during the acquisition process (including negotiations), performance of pre-submission procedures prior to receipt of an adequate proposal from the contractor, and opportunities to leverage data analytics to assess risk and evaluate overall audit conclusions. Included in the MRD frequently asked questions (“FAQs”) is a reminder that DCAA is not permitted to advise a contractor on how to develop its proposal. However, “the audit team may advise the contractor an adequate proposal must include an explanation of the estimating process, including judgmental factors and the methods used in the estimate of that cost element.”

The January 26, 2023, MRD can be found here.

To read the HKA Government Contracts quarterly newsletter, click here.

This article presents the views, thoughts or opinions only of the author and not those of any HKA entity. While we take care at the time of publication to confirm the accuracy of the information presented, the content is not intended to deal with all aspects of the subject referred to, should not be relied upon as the basis for business decisions, and does not constitute professional advice of any kind. This article is protected by copyright © 2023 HKA Global, LLC.


Follow HKA on WeChat


HKA WeChat