Defense Contract Audit Agency Law and Legal Definition

The Defense Contract Audit Agency (DCAA), is an agency in the U.S. Department of Defense that performs all necessary contract audits for the Department of Defense and provides accounting and financial advisory services regarding contracts and subcontracts to all Department of Defense Components responsible for procurement and contract administration. The Defense Contract Audit Agency acts under the authority, direction, and control of the Under Secretary of Defense (Comptroller), (USD(C))/Chief Financial Officer (CFO), Department of Defense. These services are provided in connection with negotiation, administration, and settlement of contracts and subcontracts to ensure taxpayer dollars are spent on fair and reasonable contract prices. In certain circumstances, the DCAA shall provide contract audit services to other Federal agencies also.