Total Time Accounting (TTA) Requirement

Definition

Total Time Accounting (TTA) is a mandatory DCAA requirement that demands comprehensive time tracking for all employees, regardless of whether they work directly on government contracts.

Core Principle

Every employee must account for 100% of their time:

Included Time:

• Direct contract work
• Indirect labor (admin, training, proposals)
• Paid time off (vacation, sick leave)
• Holiday time
• Any other compensated hours

No Exceptions:

• Executives and managers included
• Administrative staff tracked
• Part-time and full-time employees
• All departments and roles

Why TTA Matters

Prevents Cost Misallocation:

• Ensures accurate labor cost distribution
• Prevents overcharging government contracts
• Identifies true overhead rates
• Supports accurate pricing and billing

Audit Trail:

• Complete accountability for all labor costs
• Can reconcile time to payroll
• Proves no time fraud occurring
• Demonstrates compliance commitment

Implementation Requirements

Time Tracking System Must:

• Capture all employee hours (minimum 40 hours/week for full-time)
• Provide categories for all work types
• Include indirect and overhead time codes
• Track PTO and holidays
• Generate reports showing 100% time allocation

Employee Responsibilities:

• Record every hour of compensated time
• Use appropriate project or overhead codes
• Submit complete timesheets
• Understand time categories and codes

Common Categories

Direct Time:

• Specific contract work
• Identifiable to particular projects

Indirect Time:

• Proposal development
• Business development
• General administration
• Training and professional development
• Company meetings

Paid Time Off:

• Vacation
• Sick leave
• Holidays
• Other authorized leave

Compliance Challenges

Common Errors:

• Missing hours (doesn't total to 40+)
• Vague time categories
• No tracking for executives
• Incomplete overhead allocation
• Rounding that creates gaps

Solutions:

• Purpose-built DCAA software
• Regular training on TTA requirements
• Automated validation checks
• Clear time code structure
• Management oversight and review

Audit Focus

DCAA auditors specifically verify:

• All employees have complete time records
• Hours match payroll records
• No gaps or unaccounted time
• Proper categorization of activities
• Consistent application across organization

2026 Significance

TTA remains fundamental DCAA compliance requirement, making comprehensive time tracking systems essential—not optional—for government contractors.