# DCAA Strengthens Timekeeping Compliance Guidance

The Defense Contract Audit Agency (DCAA) has emphasized the critical importance of accurate and defensible timekeeping practices for government contractors, particularly those engaged in cost-reimbursable or labor-hour contracts. Contractors must maintain daily labor records, robust internal controls, and comprehensive audit trails aligned with Federal Acquisition Regulation (FAR) and Defense Federal Acquisition Regulation Supplement (DFARS) clauses to withstand DCAA audits and avoid cost disallowances. This guidance highlights practical steps including policy development, employee training, and system controls to ensure audit readiness and compliance with government contracting requirements.

- Contractors should prioritize implementing and maintaining timekeeping systems that provide clear, daily documentation of labor hours to meet DCAA standards.
- Compliance with FAR and DFARS timekeeping clauses is mandatory to reduce the risk of audit findings and potential financial penalties.
- Procurement professionals should ensure contract terms explicitly require defensible timekeeping practices and support contractor training and oversight.
- Organizations can benefit from consulting expertise to align internal controls with DCAA expectations and prepare for audit scrutiny.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Topics:** Regulatory Compliance
**Published:** May 12, 2026

### Government Entities
- Defense Contract Audit Agency (DCAA)
- Department of Defense (DoD)
- Federal Acquisition Regulation (FAR)
- Defense Federal Acquisition Regulation Supplement (DFARS)

### Sources
- [Timekeeping is one of the most sensitive compliance areas in government contracting. Learn what DCAA evaluates — and how contractors can stay audit‑ready with practical, defensible timekeeping practices. https://t.co/g0a7WzEq1X 

#GovernmentContracting #DCAA #Timekeeping #AuditRe](https://x.com/CherryBekaert/status/2054189110185673015) - twitter-fed-procurement
- [Timekeeping is one of the most sensitive compliance areas in government contracting. Learn what DCAA evaluates — and how contractors can stay audit‑ready with practical, defensible timekeeping practices. https://t.co/mtpP4m7q14 

#GovernmentContracting #DCAA #Timekeeping #AuditRe](https://x.com/CherryBekaert/status/2051659492165624150) - twitter-fed-procurement