HourTimesheet September 25, 2025

Unallowable Cost Penalties: The 2% Multiplication Factor

HourTimesheet Team
1 min read
DCAA Compliance
DCAA Compliance

Learn how DCAA's 2% penalty multiplier can turn small unallowable costs into millions in charges. Avoid compounding cost violations.

A major systems integrator discovered the devastating compounding effect of unallowable cost penalties when DCAA auditors imposed $14.3 million in additional charges beyond the initial $8.7 million…

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