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.
