Introduction
The defense management control agency was established under the authority direction and monitoring of the secretary of defense (Banda & Katoh, 2011). Primarily, it was charged with the responsibility of carrying out an audit of DMCAs, time and attendances, processes, reporting and accuracy. Such an initiative would help DMCA to achieve a prepared advance towards programs over time and attendance operations for better stewardship. Besides, the defense control audit agency was established under the authority direction and monitoring of the department's chief financial officer. Mainly its obligation for establishment was to help finance officers in effective decision making. Despite their diverse roles, both DMCA and DCAA have assisted in ensuring efficient contract close, contract auditing, determination of completion, price cost analysis acquisition and timely delivery of purchases thus aiding contract closeout.
Ensure effective Contract Closure
Contract closure is one of the most important last steps that call for appropriate handling in any given contract dealing between parties. In fact, it is important to ensure that each part has obtained what it was deemed for in the contract to avoid contracts ending in conflicts. As a result, the defense control audit agency is responsible for ensuring that department has acquired the rightful goods and at a fair price. It is worth noting that this takes into consideration of carrying out an audit to ensure that the agency complied with the department close out requirements. Therefore, the defense control inspection company helps in the discharge of an assessment of the contract terms and conditions and examining the degree to which each party has fulfilled its roles.
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Timely Delivery of Acquisition Programs
The primary role of DMCA has always been supporting the American war fighters about the globe especially guiding it in the purchase of goods and services to aid its operations (Braswell & Lichtig, 2014). The department is more essential in contract rewarding to companies to supply goods and services to the army as well work in close monitoring of the suppliers. Upon delivery of the contract, DCMA works to control the agreement to guarantee product, cost and timely conformity and delays, the agency aids the forces to seek alternatives. Given the above, the defense management and control company has been of help in ensuring timely delivery of acquisitions that are needed by the forces for their effective program running.
Negotiation and Invoice Payment
Part of the prime goals of DMCA is ensuring that government acquires goods and services at a relatively fair price agreed upon by both parties. However, where the audit agency provides an audit report revealing that the contractor is demanding government, the DMCA is of responsibility to negotiate with the contractor to ensure the national. In fact, the agency negotiates with the contractor to find a moderately fair amount that does not constrict the government. Alternatively, the agency works with the customer (government) and finance officer to find the additional funds to pay for the contract. Therefore, this helps in ensuring efficient payments in the contract closeout that promote good contractual dealings between the contractor and government thus enabling peaceful contract closing.
Contract Auditing
The defense control audit agency is responsible for carrying out verification of the contract in line with the government audit principles (Schaus, 2013). Mainly, this is aimed at drafting a report that portrays the likely cost estimates, the cost reimbursement and hours of the work contract. Accordingly, this encompasses evaluation of the contractor's expenses incurred, examination of receipts or materials used in the purchase of goods and services. However, in this, the auditor is expected to take an independent position while carrying the evaluation to deliver audit report to both the contractor and the government. As described, this helps in eliminating any cases of fraud and mismanagement of public funds that are more common in the performance of government contracts.
Determining Physical Completion
According to Loeb, (2010), the defense control audit agency carries out an assessment to recognize for whether there any funds remaining on actually accomplished contracts that could either are de -obligated. Besides, physical checklists are used to measure as to whether the contract is entirely made. As a result, the agencies will analyze the contract files to find out the necessity for immediate contract closeout. However, in a rare instance may a contractor request for an immediate contract close out, they usually prefer instant remunerations to timing wasting administrative close out processes. Alternatively, the defense control audit agency does not apply quick close out in cases where there hidden costs in the contract that need to be investigated on. It can, therefore, be concluded that the DCAA help in the determination of the contract degree of completion that eases contract closeout.
Price Cost Analysis
The DMCA carries out price and cost study, overhead and monetary contract scheme analysis and eviction of residents, plant clearance, and transportation. Also, it performers an evaluation of the government costs to be incurred for the payment of the expenses of the destruction of people's property. As a result, the agency takes initiatives to discuss for a variable payment amount to the both the contractor and the masses to enable the nation pay a minimal amount. Although this does little in impacting the grand some for payment, it helps to negotiate for a fair sum that the government does not find much straining. As described, this enables appropriate amount to people that guide's proper closing of public contracts without suppressing the community.
Determining Payment Histories
It is a role of the defense control audit agency to establish whether there are resources that can be de-obligated from contract terminations or reduction of contract materials and obligated funds. Also, the agency will identify the chief finance officer and the accountants that were accountable for earlier payment upon the contract. In fact, some funds requested in individual contracts are not used and as such call for close tracking of that fund to avoid it being misused and can be utilized in the funding of the other requirements. However, this requires knee monitoring, and contractors usually abuse supervision of the contract operations as most of the de-obligated funds. Ultimately, this ensures efficient utilization of the contract funds which avail resources for the payment of other obligated needs.
Accounting and Financial Advisory
Among DCCA canon roles of its inception were to perform audits and offer accounting and financial advisory information to the government as regarding contract management. Also, it is upon their discovery in the audit process when they make recommendations to as to whether close out the contract or terminate the contract. As a result, the agency ordered for the closeout and payment of the contract for where the department complied with the closeout requirements. Alternatively, for where individual files are identified to be omitted, the defense control audit agency for termination, closeout or payment for the contract. Given the above, the defense control audit agency helps the government in determining legitimate circumstances of contract close out, termination and payment to contractors.
Conclusion
Whereas there increased challenges in contract management ranging from corruption, delays and poor quality work output, DMCA and DCAA have been of high relevance to government. In fact, most contracts are undertaken by most companies today either yields low-quality output or are comprised of unnecessary delays aimed at earning high from the contract. However, the formation of the two agencies has initiated to avert the increased delays and inappropriate payments to ghost contractors. Accordingly, the defense control audit agency offers for auditing to provide clear oversight and proper payment of contractors. Alternatively, the defense management control agency has reduced the delays in the delivery of goods and services and further provides for alternatives in case of delays. Through all the various roles of ensuring effective close out, contract auditing, negotiations and invoice payment and cost price analysis, DMCA and DCAA has been essential in contract closeout.
References
Band, J., & Katoh, M. (2011). Interoperability under the DMCA . Interfaces on Trial
Braswell, R., & Lichtig, J. (2014). Streamlining the Acquisition Process : A DCAA Field-Grade Perspective.
Loeb, R. C. (2010). GAO vs. DCAA – And the Winner Is ? …Contractors! SSRN Electronic Journal .
Schaus, J. L. (2013). Government Contracting - DCAA Audits . SSRN Electronic Journal .
