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Surviving a DCMA audit The possibility of getting audited by the Defense Contract Management Agency is daunting and nerve-racking. DCMA has extremely exacting requirements and specifications for Department of Defense contracts, and so to pass an audit, your business and all of its employees absolutely must be able to adhere to strict guidelines regarding Item Unique Identification (IUID) methods and processes. Let’s explore the most important elements you need to master to survive a DMCA audit of your IUID-labeled assets:

  • Know the IUID Registry inside and out: The IUID Registry is the Department of Defense’s repository for all IUID data, creating a system of record to track and trace all assets. It is important to understand what is necessary for you to report to the registry and when. You must follow all procedures and supply the accurate data as specified by the Registry.
  • Understand your assets: DCMA does not treat all types of DoD assets the same , and it’s critical to understand the differences. End items, which are produced by the contractor, must be reported and shipped on a DD250, with an Advance Shipping Notice. By contrast, government-furnished property and legacy assets, which are assets that come from the government and are managed by the contractor, are required to report any changes or modifications to the asset.
  • Always use compliant marks: DCMA auditors look at every aspect of IUID markings, from the type of label or mark to the mark’s readability. Auditors  verify that IUID markings are made of the correct data and ensure that the mark is readable in accordance with MIL-STD 130. Therefore, it is important to both validate the syntax of the mark and verify its readability. . The placement of the mark and its security on that asset is just as important. An IUID mark is meant to last the full life of the asset, so if you are using a label with an IUID mark, make sure that it is military grade and that it is placed on a flat surface in an area that does not ruin the integrity of the asset.
  • Direct your subcontractors accordingly: DCMA auditors aren’t just interested in auditing the work of the contractor; they also will review the work of your subcontractors. If your subcontractors applied the IUID markings on assets, you can expect to receive as much scrutiny as if you had applied the markings yourself.

The prospect of gearing up for a DCMA audit may sound intimidating,  but if you consider these four important elements and establish a process to ensure compliance, you will have nothing to worry about.