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Government by Contract

As the Defense Contract Audit Agency slowly works its way through its growing backlog of incurred cost audits, Government contractors are increasingly facing the prospect of contract audits being conducted long after the expiration of the Federal Acquisition Regulation records retention period. At the end of fiscal year 2011, DCAA had a backlog of nearly 25,000 incurred cost proposals totaling more than $573 billion. Against this monumental backlog, DCAA completed only 349 incurred cost audits in FY 2011.