Another problem encountered is contractors failing to properly disclose their parametric estimating practices. Auditors have experienced instances where the first time a parametric model is disclosed is during the evaluation of the proposal. This is often too late. As mentioned earlier, larger DOD contractors have an obligation to disclose in writing their estimating procedures. Making proper and timely disclosure will minimize problems and expedite the negotiation process.
Contractors can take the lead in helping to streamline the oversight process.
DCAA has been a leading proponent of the self-governance program. Self-governance is intended to encourage contractors to establish and maintain good systems of internal control in key areas, including estimating systems. This initiative recognizes that prudent contractors already have the means in place to ensure their operations are efficient and cost effective. DCAA has another initiative that contractors should consider as a part of streamlining the oversight process. DCAA defines coordinated audit planning as a voluntary process wherein the DCAA auditor and the contractor's internal and external auditors consider each other's work in determining the nature, timing, and extent of his or her own auditing procedures.