Current Events
Government Shutdown? What can/should a contractor do? A potential government shutdown won't just impact employees collecting government paychecks, but could also severely impact hundreds of thousands of contractors and the companies employing them to provide goods and services to federal agencies. Federal funding for government operations expires
INSPIRATIONAL CORNER
Sometimes you must take a risk. I saw the first sentence below on several posters. You may have read it also. A ship in a harbor is safe, but that is not what ships are built for. Trying to operating a productive environment to avoid all risk and all mistakes
The DCAA and You
If you haven't already heard, let me bring you up to date on this "Revised Audit Threshold" issue and provide my humble input as to what I see the results may be. I also provided some summary comments for your thought. OVERVIEW: As part of the
The DCAA and You
I have high lighted in color, bolded, or underlined those items I believe are of particular importance to you as a small business contractor. This one article alone is worth the annual subscription! Recently, a tension appears to be developing between the Defense Contract Management Agency (DCMA) and the Defense
INSPIRATIONAL CORNER
"What If" Two words that "reek havoc" in most lives everyday. Worrying about what may happen. What if I get sick? What if I lose my job? What if he/she leaves me? What if I have an accident? What if someone attacks me?Don'
Other Items of Interest
Inquiry: Can Federal contractors telework? Response: Since the Federal telework program and policies cover only Federal employees, Federal contractors are not governed by OPM and GSA telework guidance or by individual agency policies, and are not counted in the annual Telework Report to Congress. However, this does not prohibit – and
Cost Allowability (FAR 31)
Inquiry: Can a subcontractor add Overhead and Profit to Per Diem costs? Response: Indirect Cost - Typically a firm (prime or subcontractor) can add Overhead or G&A to its' Direct Travel cost because allowable cost include both Direct and Indirect. The caveat is that this method must
Cost Allowability (FAR 31)
Intra-company Transfers and Pyramiding of Cost and Profit Under FAR, is it permissible for a wholly owned subsidiary to bill the parent company for work subcontracted on the parents contract with the government (including normal markup) and that the parent company contracted with the government is then able to submit
Policies, Procedures, Internal Controls
Line of Credit - Payback in Full or Monthly Payments? Should you keep your outstanding line of credit and pay down like a loan or should you pay it back in full once invoice funds come in? RESPONSE: I recommend you pay most of the line back initially and for
Cost Allowability (FAR 31)
Exempt, Salaried, Direct Labor - Can more than 40 hours per week be billed to customer? INQUIRY: Some Large Firms say it's okay that they only record and charge 8 hours per day/40 hours per week for their exempt direct people, regardless of how many hours they
Cost and Pricing
Facility Security Officer (FSO) - Overhead or G&A INQUIRY: FSO (Facility Security Officer) - Should this cost be charged to Overhead or G&A? RESPONSE: In my opinion, I would assign FSO costs to Overhead. Generally, those costs that benefit more than contract and cannot, or are
Cost Allowability (FAR 31)
INQUIRY: Is Keyman insurance unallowable? RESPONSE: This question has been asked of me several times recently, even by larger firms. My response: It Depends! FAR 31.205-19(e)(v) states - "Costs of insurance on the lives of officers, partners, proprietors, [Typically those considered as the Key man or
