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DCAA issues MRD confirming auditors should not verify technical interchanges

By Dentons Government Contracts Group
December 1, 2017
  • Government Contracts
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On November 21, 2017, DCAA issued a Memorandum for Regional Directors (MRD) confirming that the Class Deviation 2017-O0010’s abrupt halt to technical interchange requirements as a condition of independent research and development (IR&D) cost allowability applies to auditors. Dentons previously discussed Class Deviation 2017-O0010 and its implications for contractors when the Class Deviation was issued in September 2017.

The MRD expressly applies the Class Deviation to DCAA auditors. It states that no IR&D costs should be questioned if an auditor finds that a technical interchange did not occur. This guidance applies retroactively to all audits performed of fiscal year 2017 costs, as well as current and future audits. The MRD is available on DCAA’s website.

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Operating at the intersection of law, business and government, the Dentons’ Government Contracts practice delivers creative, flexible and effective business and litigation solutions and strategies, relying not only on our breadth and depth of experience, but also on our proven history of succeeding in the most complex and difficult circumstances.

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