The Department of Defense (DoD) Comptroller announced the new Defense Contract Audit Agency (DCAA) Director on October 21, 2024, as Ms. Jennifer Desautel. Ms. Desautel was previously the Assistant Director, Policy and Quality was responsible for the formation, development and issuance of contract audit policy and quality assurance within DCAA and its over 4,000 employees in nearly 300 locations. The DoD Comptroller in his announcement sited her extensive experience with DCAA operations and mission as well as her strong alliances across DoD and industry made her ideally suited to lead DCAA.
Ms. Desautel’s appointment as Director breaks DCAA’s track record of appointing a director from outside of DCAA. With DCAA’s internal Director appointment, Ms. Desautel will have a stronger foundation of DCAA operations and experience then her prior three predecessors who were appointed DCAA Director with nearly work experiences solely from agencies outside of DCAA.
Potential Opportunities for Improved Audit and Compliance
Although a DCAA now has a Director with perhaps more experience and knowledge of DCAA, there are potential opportunities a DCAA Director should address (in no particular order):
- Leading DCAA auditors beyond incurred cost audits that lead to predominately low risk memos and into other audit areas such as cost accounting standards (CAS) audits, systems reviews and ensure that auditors conducting these audits are knowledgeable and trained. This includes not only knowledge of FAR and CAS but methods to conduct these audits efficiently and effectively.
- Develop audit policies that are transparent and can be provided through DCAA’s public website for not only DCAA’s audit purposes but also for contractors to know and be prepared for in performing their contracts. This includes being proactive to regulation changes and reducing any lag time in the effective date of the regulation changes. Also conduct a review of current policies where costs may be questioned with what appears to be less than a rational basis. For example, questioning total labor costs because an entity’s timesheets did not meet an auditor’s expectations or where time & material contracts hours were accepted but later was determined the employee’s qualification did not meet the contract’s requirement.
- Obtaining auditors in a competitive environment for obtaining accountants and auditors in the government. This may include use of paraprofessionals for some audit effort which DCAA has been reluctant to do in the past.
- Reporting DCAA “Year-In-Review” to Congress more objectively than savings to taxpayers that seems to be the same year after year. Be forthright in shortcomings and perhaps even have this performed outside of DCAA. This may show a truer picture of DCAA operations.
As DCAA evolves under Ms. Desautel’s leadership, Redstone GCI remains committed to supporting contractors through expert DCAA audit support, helping navigate policy updates, compliance, and audit preparation to ensure smooth and effective engagements with the agency.
David (Dave) Fix is a Director with Redstone Government Consulting, Inc. He provides Government Contract Consulting services to our Government contractors primarily related to compliance with Federal Acquisition Regulations and Cost Accounting Standards, equitable adjustment claims, and business systems. Prior to joining Redstone Government Consulting, Dave served in a number of capacities with DCAA for over 35 years. Upon his retirement, Dave was a Regional Audit Manager with DCAA. Dave began his DCAA career in 1986 as an auditor-trainee with the General Electric Suboffice in Pittsfield, Massachusetts. He progressed from auditor to DCAA management ranks serving in DCAA offices in Upstate New York, Columbus, Ohio and Greensboro, North Carolina in audits of major and non-major contractors. Dave served DCAA in three overseas tours, all as Branch Manager, in Kuwait/Iraq (2007), Afghanistan (2010-2012) and Kuwait (2014). Dave was promoted to Regional Special Programs Manager (RSPM) in 2015 before ultimately becoming a Regional Audit Manager (RAM) in October 2019. While a RSPM, Dave worked with DCAA’s other three RSPMs with updating the Agency-wide audit planning process including assigning priorities and determining funded/unfunded audits that is currently being used by DCAA. While a RAM, Dave had overall management responsibility for audits performed by approximately 140 employees including one of DCAA’s largest shipyards. During his career, he served as guest instructor at DCAA’s Defense Contract Audit Institute (DCAI) bringing field perspective to “Advance Auditing Issues” and “Supervisors’ Course” as well as served as a DCAI adjunct instructor over DCAA auditors’ initial two-week training course prior to his retirement. Dave served 36 years in the Air Force Reserve/Air National Guard in both enlisted and officer positions retiring at the rank of Lieutenant Colonel. His last duty station was Air Force Reserve Command (AFRC) Headquarters, Robins Air Force Base, Inspector General Office serving as the Chief, Contracting Inspections leading inspections of AFRC’s 10 contracting offices as well as assisting in inspections of AFRC finance offices. Dave currently specializes in preparing clients for more complex DCAA audits, providing advice on FAR cost principles and contracts regulatory provisions and in assisting clients in anticipating and addressing audit.