Which entity is responsible for conducting audits that help determine contractual cost finalization?

The Defense Contract Audit Agency (DCAA) is the entity responsible for conducting audits that assist in determining the finalization of contractual costs. DCAA's role is crucial in ensuring that the costs charged by contractors are compliant with federal regulations and allowable under the terms of the contract. Their audits provide integrity and transparency in the financial interactions between the government and the contractors, confirming that costs are reasonable, allocable, and justified based on the work performed.

In the context of contractual cost finalization, DCAA's audits serve as a critical tool for validating the contractor's financial statements and cost proposals. The agency assesses cost claims and provides recommendations on the acceptance of those claims, thereby supporting the government in making informed decisions regarding contract payments and final settlement.

The other options involve roles that may contribute to the overall project management process but do not have the specific responsibility of conducting audits for cost determination. The contractor provides the cost proposals and performs the work, the project manager oversees the execution of the project, and the contract administrator manages the contract's terms, but none of these roles have the auditing authority or the specialized function that DCAA provides.