Like CAS 401, CAS 402 is part of modified CAS coverage and is one of the first CAS standards a company encounters. It likely will not call for any changes to the company’s cost accounting system because Federal Acquisition Regulations (FAR) 31.202 (Direct costs) and 31.203 (Indirect costs) give us words very similar to the CAS words.
Topics: Contracts & Subcontracts Administration, DCAA Audit Support, Government Regulations, Cost Accounting Standards (CAS), Federal Acquisition Regulation (FAR)
Many new government contractors are frustrated by being told they have a CAS 401 noncompliance, especially if they are not CAS covered. This is, of course, wrong terminology for non-CAS covered contractors, but is shorthand for saying the company is not estimating, accumulating, and reporting costs the same way. This is most frequently a difference between how a company estimates cost and then how the company accumulates and reports costs. This is not only important to the government, but to the company itself. A contractor cannot determine whether it is losing money on a contract if there is no way to compare what was bid to what was incurred. This is likely one of the first CAS standards a company encounters because even modified coverage calls this standard into play.
Topics: Contracts & Subcontracts Administration, DCAA Audit Support, Government Regulations, Cost Accounting Standards (CAS), Federal Acquisition Regulation (FAR)
Thank you to all of our sponsors and attendees for their support of the 2022 Redstone Edge Conference. All profits from the conference are being donated to Castin’ ‘N Catchin’.
Topics: Redstone GCI, Vlog
The proposal is often the procurement parties’ first introduction to a company. It is important to remember that different readers are looking for different types of content from the proposal. From an auditor’s viewpoint, an important part of a contractor’s cost estimating process is preparing the basis of estimate (BOE).
The recent memo from the Defense Pricing Center (DPC) has created quite the stir around the current economic uncertainties in the government contractor community tied to inflation. The unfortunate reality is that for many years, economically speaking, the risk of inflation has been a steady 2-3% and so both contractors and the acquisition professionals on the other side have not had to realistically consider this factor in pricing/negotiating contracts. History has shown us that the threat is all too real and can cause significant hurdles for contractors to weather an inflationary period like we saw in the 80s, early nineties and as recently as 2009. The question of is it transitory or are we headed toward a recession is best left to our friend the magic 8-ball, but I do think there are a few things that all contractors should be aware of during this time.
Topics: Proposal Cost Volume Development & Pricing, Paycheck Protection Program (PPP) Loans, Federal Acquisition Regulation (FAR)
There seems to be a lot of questions and misconceptions about purchase orders and subcontracts. Is there a difference? When is it appropriate to issue either instrument?
Topics: Small Business Compliance, Contracts & Subcontracts Administration, Contractor Purchasing System Review (CPSR)
We recently got all of our employees together for a Spring Fling. BBQ, axe throwing, and spending time with one another. A great time was had by all!
Topics: Redstone GCI, Vlog
This video is the second part of a two part series where we provide an overview of some of the expectations that come with completing a Government proposal and their respective realities.
This video is the first part of a two part series where we provide an overview of some of the expectations that come with completing a Government proposal and their respective realities.
Topics: Vlog
Merry Christmas and Happy New Year from all of us at Redstone GCI
Topics: Redstone GCI, Vlog
