Accounting System, Cost And Accounting, Incurred Cost Proposals, Running Your Business

Follow up on DCAA Demanding AP Reports

I was researching another issue when I ran across this gem in DCAA’s “Information for Contractors”. Show to the next DCAA auditor who tells you that you are required to pay accounts payable in thirty (30) days or less.

DCAAM 7641.90 Information for Contractors

5-1(c)

“…Additionally, when the contractor is not delinquent in paying its bills, it may bill costs incurred, but not necessarily paid for supplies and services purchased directly for the contract and associated financing payments to subcontractors, provided payments will be made in accordance with the terms and conditions of a subcontract or invoice; and ordinarily within 30 days of the submission of the Contractor’s payment request to the Government.”

Emphasis Added

Standard