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DCMA Revises Cyber Supply Chain Review: Updated Guidebook Modifies Audit Standards

Client Alert | 1 min read | 07.16.19

As anticipated, the Defense Contract Management Agency (DCMA) revised its Contractor Purchasing System Review (CPSR) Guidebook as of June 14, 2019, with the most significant updates to Appendix 24, Supply Chain Management Process, to further address supply chain compliance with DFARS 252.204-7012. As we previously noted, the CPSR Guidebook was revised earlier this year to address DoD guidance related to management and oversight of the supply chain in connection with DFARS 252.204-7012.

While much of the CPSR review criteria remain the same, noteworthy revisions include:

  • Asking contractors to “show how they have determined” that their subcontractors have an adequate information system that can handle Covered Defense Information, versus the prior guidance to ask contractors to “validate” the adequacy of subcontractor systems.
  • Broadening supply chain requirements by applying the Guidebook’s language to “subcontractors,” rather than just “first tier suppliers” as in the prior version.
  • Clarifying that the CPSR review is focused only on the protection of “Covered Defense Information” and not “Controlled Unclassified Information” more broadly.

Insights

Client Alert | 1 min read | 04.09.25

DCAA Announces Reorganization Plans

On April 7, 2025, the Defense Contract Audit Agency (DCAA) announced agency reorganization plans aimed at reducing the number of field offices and centralizing audit operations. DCAA plans to close 40 smaller audit suboffices around the country, many staffed with fewer than 10 personnel, to reduce the costs of associated leases. The agency will also consolidate the existing Region Audit Directorates for the Eastern, Central and Western Regions and four Corporate Audit Directorates (CADs), located proximate to large contractors, into three new Directorates—Land, Sea, and Air. The audit offices of the CADs will be merged into the new Directorate that most closely aligns with a contractor’s product. DCAA’s announcement states that the organizational restructuring will be completed by September 30, 2025. The full text of the announcement is available here....