This is an information post. DCAA on December 10, 2009 provided direction and audit guidance to its auditors to determine compliance with the 2009 Appropriations Act. This Act limits indirect costs on DoD research grants and other contract vehicles. The limit is 35% of total costs. DCAA has instructed its auditors to verify compliance with this requirement and to audit the contractor’s internal controls regarding this compliance requirement.
Contractors should keep this in mind understand its indirect costs invoicing will be to limited to this cap and make adjustments in its billing procedures to not exceed this limitation. Should you have questions on this or been requested by DCAA to demonstrate your system meets this requirement please contact me.