Cost and Pricing
Mr. Gunn, I am a consultant working with an organization that has attended your seminars and we are now trying to figure out the best method of allocating "indirect" job expenses specific to the firm. My client, who is a General Contractor, doesn't have a lot
Current Events
The White House's 2011 budget proposal will "rebalance" the relationship between the government and its contractors through more oversight and insourcing, the Obama administration's top procurement policy official said last week. "We think the prior administration had policies that led to pressure to
Cost and Pricing
INQUIRY: Are 8(a)'s always exempt from CAS requirements? If we are awarded a subcontract from a prime when the prime contract is billions of dollars, what CAS requirements would we be subject to? RESPONSE: Cost Account Standards (CAS) are complex, misunderstood, and often used with apprehension by
The DCAA and You
Commercial versus Government Contracting – In a commercial contract, the deliverable is a package of goods and services. In a government contract, another ingredient is added for the contractor: Administrative reporting to assure that costs billed to the contract are allowable by the government. “Reporting” in this case means not only
Policies, Procedures, Internal Controls
INQUIRY: I received a vendor discount when I paid the invoice early on a FFP (Firm Fixed Price) contract and I do not know how to enter that into my accounting system under DCAA regulations. RESPONSE: FAR states the contractor is responsible for having a system in place for seeking
Policies, Procedures, Internal Controls
INQUIRY Hey Paul, I had a quick question that I’ve been unable to find the answer for. We have some employees that have excess PTO (Paid Time Off) at the end of the year and would like to let other employees without PTO use the time. As a company,
Government Contracting Process
INQUIRY: What is the far clause for a lower tier subcontractor to deny audit access to the prime for competitive purposes? RESPONSE: There is no FAR clause that provides for permitting a subcontractor's denial of a prime contractor audit access to the subcontractor's books and records.
Government Contracting Process
A common practice for a company is to identify its products using logos and emblems. Some contracting officers are concerned over the costs being incurred for contractors' logos and emblems being placed on Government systems. These contracting officers are treating the direct and indirect costs for logos and emblems
The DCAA and You
Over the years I have encountered many instances of DCAA auditors finding significant deficiencies of small businesses as it pertains to written policies, procedures, and practices. The following sample of a typical standard wording in an audit report of finding is presented for your understanding. Remember, being prepared is better
Cost Allowability (FAR 31)
INQUIRY: I am in Construction. My contracts are typically fixed price. Why am I being asked to breakdown my price into things like indirect and direct costs and why am I asked how I determine my indirect rates and why am I asked about my accounting system and how I
The DCAA and You
Prior to her reassignment from Director of the Defense Contract Audit Agency to “an executive position” on the Defense Department Comptroller Robert Hale’s staff, April Stephenson implemented a number of improvements to address issues cited in recent GAO reports of DCAA shortcomings. These included: * Halting practices that based employee
DVD and Workshops
The Winners and Losers: 5 Management Myths on Training Why do I continue to express passionate interest about the right training to the small, 8(a), SDB, WOB, SVOB, VOB, HubZone, and similar firms doing business with government at all levels? Because my experience and results has proven that the
