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.

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