Federal News
DCAA San Diego Questions Construction Claim
March 18, 2026
The Defense Contract Audit Agency (DCAA) San Diego Branch Office conducted a detailed audit of a firm-fixed-price construction contract, scrutinizing $6.7 million of the $9.5 million claimed costs. The audit revealed significant potential savings for the government despite challenges such as contractor inexperience and insufficient documentation. This underscores the critical role of rigorous audit oversight in ensuring accountability and cost-effectiveness in government construction contracting.
- The audit involved complex evaluation of prime and subcontractor claims under a $9.5 million construction contract.
- Procurement professionals should note the importance of thorough documentation and contractor experience in mitigating audit risks.
- Contractors can expect increased scrutiny on cost claims, emphasizing the need for robust record-keeping and compliance.
- Agencies may leverage audit findings to improve contract management practices and identify cost-saving opportunities in construction procurements.
The teamโs expertise played a significant role in successfully navigating all the complexities of the audit, resulting in millions of potential savings and ensuring accountability in government contracting.
— Michell Karidis, Supervisory Auditor
Agencies
Defense Contract Audit Agency, US Army Corps of Engineers
Contracts
$9.5 million claimed costs