DCAA Clarifies Position on Documentation Requirements for Consultant Costs

The Defense Contract Audit Agency recently issued guidance clarifying the agency’s view on the types of evidence necessary to substantiate consultant costs.  The guidance explains DCAA’s position that Federal Acquisition Regulation 31.205-33, which addresses the allowability of consultant costs, does not require the existence of specific types of documents in order for consultant costs to be allowable.  Instead, the guidance explains that the FAR only requires evidence of the nature and scope of the consultant effort and that such evidence can be supplied in a variety of ways, including through non-contemporaneous documentation.  This guidance will assist contractors in resisting the common auditor position that FAR 31.205-33 requires contractors to provide specific types of documents, such as invoices, contracts, and work product, as a precondition of consultant cost allowability.

Thomas Lemmer

About Thomas Lemmer

Thomas A. Lemmer routinely counsels and litigates for clients on US federal contract formation, contract administration and dispute resolution. Tom also counsels clients on global procurement issues, with the assistance of Dentons’ offices worldwide, including employment issues, how to do business in a given country, how to do business with the US government and risk assessments.

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Steven Masiello

About Steven Masiello

Steven M. Masiello is the chair of the US Government Contracts practice and a leader of the firm's Global Government Contracts and Procurement group. Masiello serves as lead counsel in complex government contract matters across numerous industry segments concerning state, federal, and foreign military funded transactions in the US courts, agency boards and under domestic and international alternative dispute resolution procedures.

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