DCAA to close additional offices amid agency reorganization

After shutting down 40 smaller audit suboffices around the country, the Defense Contract Audit Agency announced additional office closures as it continues its sweeping effort to reorganize the structure of the agency and shrink its physical footprint. 

DCAA said it has identified six additional small offices for closure in fiscal 2026. The agency described the closures as part of “ongoing and separate efforts” to evaluate office locations and ensure services are delivered “in an efficient and cost-effective manner.” 

“This streamlined approach will also reduce our costs and ensure taxpayer funds are used as efficiently as possible. This effort involves a continuous evaluation of DCAA’s lease costs, office locations, and resource requirements to maximize the value of every Department of War dollar,” a senior DCAA official told Federal News Network.

“Our initial reviews identified seven small offices for closure during Fiscal Year 2026. However, this is a longer effort that involves deliberate planning processes to evaluate current leases and transition to hub locations,” the official added.

Ultimately, the agency plans to consolidate its operations over the next several years into a headquarters and 23 hubs in key locations across the country while maintaining a presence at key defense contractor sites. 

“This will bring our team closer together, foster collaboration and strengthen connections between our workers and our warfighters. This deliberate transformation ensures our team is better positioned to deliver unparalleled acquisition insight and high-level customer service the Department of War demands in a changing defense landscape,” the senior official said.

The latest announcement follows a major restructuring effort DCAA unveiled last year in response to mounting pressure to reduce costs and improve operational efficiency. At the time, the agency said the restructuring effort would be completed by Sept. 30, 2025. 

The plan included consolidating 40 smaller suboffices, many of which had fewer than 10 employees, and reorganizing the agency’s field structure into three primary directorates: Land, Sea and Air. 

DCAA Director Jennifer Desautel said the consolidation effort would impact approximately 160 employees and help the agency meet its goal of terminating at least 30% of its leases over the next three years.

“We assessed the viability of offices with fewer than 10 personnel, and the current structure with over 200 offices is no longer sustainable. Consolidation will enable us to better align our resources with our mission while delivering significant cost savings,” Desautel said when announcing the effort last year. 

The agency did not respond to questions about how many employees may be affected by the continuous reorganization and additional office closures, whether employees would be able to choose their new locations or what would happen to workers unable to accept a reassignment. 

“We recognize these changes may impact our people, their families, and the department’s customers. We are engaged with our dedicated workforce to provide transparency and to hear and respond to their concerns. As we work through this geographic realignment and other changes, our entire team remains focused on strengthening our connection to the mission, supporting our people, and delivering trusted oversight for the department, the warfighter, and the American taxpayer,” the senior official said. 

The restructuring could impact the processing of contract audits as offices consolidate and responsibilities shift. Additionally, points of contact may change and some audit functions could move to the Defense Contract Management Agency. 

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