The Defense Contract Audit Agency (DCAA) is an agency of the United States Department of Defense under the direction of the Under Secretary of Defense (Comptroller). It was established in 1965 to perform all contract audits for the Department of Defense. Previously, the various branches of military service were responsible for their own contract audits. The DCAA's duties include financial and accounting advisory services for the Department of Defense in connection with negotiation, administration and settlement of contracts and subcontracts. Early history The Defense Contract Audit Agency was established on January 8, 1965. Previously, the various branches of the military were responsible for their own contract audits and there was little consistency in contract administration and auditing. The first efforts to perform joint audits began with the U.S. Navy and Army Air Corps in 1939. Audit coordination committees were formed by the Navy and Army Air Corps in December 1942 for contracts involving more than one service branch. A single contract audit manual was issued on June 18, 1952, serving the three military service branches existing at that time. However, writing standard guidelines was difficult, due to differences in the organization and practice of procurement between the services. Defense contract audits became the responsibility of a single agency, the DCAA, in response to a feasibility study directed by Secretary of Defense Robert S. McNamara in 1962. William B. Petty, former Deputy Comptroller of the U.S. Air Force, was appointed in 1965 as the new agency's director and Edward T. Cook, former Director of Contract Audit for the Navy, was selected as the deputy director. Recent history As of September 30, 2013, the Defense Contract Audit Agency had 4,933 employees, located at more than 300 offices throughout the United States, Europe, Asia, and in the Pacific. This workforce consisted of 4,334 auditors and 599 support staff. The Agency provides standardized contract audit services for the Department of Defense, as well as accounting and financial advisory services regarding contracts and subcontracts to all DoD components responsible for procurement and contract administration. DCAA Contract Audit Manual requires its audit staff to conform to zero-based budgeting in the performance of its audits. In practice, this requires the audit team to account for its time spent performing audits. These services are provided in connection with negotiation, administration, and settlement of contracts and subcontracts. DCAA does not provide consulting and advisory services to contractors due to