Defense Contract Management Agency (DCMA) Compliance
The Defense Contract Management Agency (DCMA) is the agency that is responsible for the execution of all contracts issued in the Defense Department, worldwide. DCMA is lead by a military member and has nearly 12,000 employees (both civilian and military). The DCMA manages over $200 billion in contract obligations and has a myriad of tasks in which they are responsible. They are tasked to be an independent contract management agency which is designed to keep both the contractor and the government in line.
How much interaction should you expect from the DCMA in your organization?
Most of the time, the DCMA operates in the background and you are almost unaware of their presence. However, they are actively involved in all aspects of your contract. Before your contract is awarded, the DCMA reviews it to ensure that the government has included the correct clauses. Once your contract is awarded, the DCMA gives the final approval for your invoices. During the contract, the DCMA watches your schedule and progress to ensure that your efforts are on track and the contract is going as planned. As such, maintaining proper DCMA compliance is critical to defense contractors.
The DCMA manages the Wide Area Workflow (WAWF) system. This is where you enter your invoices so that you can get paid for your work. The DCMA provides training and a help desk for this one application. They also provide oversight, and will let you know if you have a problem with an invoice that you have submitted (however, properly submitting the invoice can often be difficult for contractors that are unfamiliar with the system).
Any contract change that is executed from a price, schedule, to no-cost extension, is routed through the DCMA before it is executed. The DCMA is also responsible for reviewing Earned Value Management Systems, Integrated Master Schedules, Inventory Management Programs, Cost Accounting Standards, Government Furnished Property, Equipment or Software control, Purchasing Systems, Contract Close-out, etc.
It is important to note that the DCMA is often confused with the Defense Contract Audit Agency (DCAA). These two agencies handle different aspects of contract compliance. To learn more about the differences between the DCMA and DCMA, read our popular blog, "What is the Difference between the DCAA and DCMA?"
A good relationship with the DCMA is imperative to your success. ReliAscent has over 170 years of US Government contract management, dealing with all agencies including the DCMA. From the basics of “How to use WAWF” to the more complex such as “Earned Value Management Systems”, we have experience with all of it. Call us for more information!