Tire Manufacturer Case Study

A Division of one of the world’s largest tire makers manufacturers components that are utilized on almost every armored vehicle in the U.S. Military’s arsenal.  The client initially engaged Victura professionals to assist with resolving several Defense Contract Audit Agency (DCAA) audit findings alleging a Cost Accounting Standards (CAS) noncompliance and to support them with cost/price negotiations for a new contract opportunity.

To address the alleged CAS non-compliance matters, our team reviewed the client’s cost accounting practices, current contract proposals and the DCAA’s draft audit findings.  Our team performed calculations to replicate DCAA’s analysis and assess their methodology to evaluate the findings.  Based on this assessment, we identified flaws and discrepancies in the findings reached by the DCAA and we assisted in drafting rebuttals to the CAS non-compliance allegations.   Victura professionals also assisted client personnel with the successful resolution of the CAS non-compliance allegations, with the government’s full retraction of all alleged CAS non-compliances.  The successful resolution of the CAS non-compliance matter also resulted in Victura assisting the client to successfully conclude contract negotiations with the Government for the pending contract opportunity.

As a result of the success of this initial project, Victura professionals have been engaged to provide ongoing support to our client on a variety of matters, including: revising their CAS Board Disclosure Statements and preparing Detailed Cost Impact Proposals for implemented cost accounting practice changes.  We have also assisted this client with responding to various DCAA audit reports and related findings, development of a statistical sampling methodology for unallowable Corporate Home Office costs identification, etc.