ASBCA Turns the Tables on the Sovereign Act Defense

I wrote an article in 2022, “The Future Does Not Look Good For COVID-Related REAs.” Well, it looks like things may have changed. On October 2, 2024, the Armed Services Board of Contract Appeals (ASBCA) issued its decision in the Appeals of Chugach Federal Solutions, Inc. ASBCA Nos. 62712, 62713, and 62877. In this case, the Board “rule[d] the government … failed to carry its burden to establish the sovereign acts defense.”

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Topics: Contracts & Subcontracts Administration, Government Regulations, COVID-19, Federal Acquisition Regulation (FAR)

New DCAA Director Appointment Brings Potential Opportunities

The Department of Defense (DoD) Comptroller announced the new Defense Contract Audit Agency (DCAA) Director on October 21, 2024, as Ms. Jennifer Desautel. Ms. Desautel was previously the Assistant Director, Policy and Quality was responsible for the formation, development and issuance of contract audit policy and quality assurance within DCAA and its over 4,000 employees in nearly 300 locations. The DoD Comptroller in his announcement sited her extensive experience with DCAA operations and mission as well as her strong alliances across DoD and industry made her ideally suited to lead DCAA.

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Topics: Contracts & Subcontracts Administration, Government Compliance Training, DCAA Audit Support, Government Regulations

Don’t Forget the Government Property During Contract Closure

So, the title is maybe a little misleading, and don’t worry – DCMA won’t let you forget the Government property during contract closure. Government property closeouts are only a singular piece to the contract closeout process. And like with all things Government property, the closeout process takes teamwork from both the contractor side and the Government side to be successful.

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Topics: Contracts & Subcontracts Administration, DFARS Business Systems, DCAA Audit Support, Government Regulations, Government Property Management, Federal Acquisition Regulation (FAR)

Small Business Reality vs. DCAA Accounting System Expectations

Every small business that receives a Federal Government cost reimbursable contract is expected, by the Defense Contract Audit Agency (DCAA), to have a “sound internal control environment, accounting framework, and organizational structure.”

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Topics: Compliant Accounting Infrastructure, Small Business Compliance, DCAA Audit Support, Government Regulations, Cost Accounting Standards (CAS), Federal Acquisition Regulation (FAR)

Reaching Beyond FAR 12 Contracts: Lessons from the Appeals Court

Yet another interesting case to consider from United States Court of Appeals for the Federal Circuit – ACLR, LLC v. United States Court of Appeals 2013-1190.

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Topics: Litigation Consulting Support, Contracts & Subcontracts Administration, Government Regulations, Federal Acquisition Regulation (FAR)

What Happens When You Choose the Cheapest Option for Unanet Implementation?

Is cheaper always better? When choosing a software system like Unanet for implementation, many organizations are tempted to go with the lowest-cost option. However, while cost might seem like the most immediate concern, focusing solely on price often leads to long-term challenges that can affect your business's financial health and operational efficiency.

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Topics: Compliant Accounting Infrastructure, Small Business Compliance, Unanet

The Government Gets Service for Free: Lessons from Platinum Services vs. Army Dispute

Lessons Learned from a recent Armed Services Board of Contract Appeals (ASBCA) case – Platinum Services, Inc. ASBCA Nos. 62199, 62200.

Bottom Line Up Front

The contractor (Platinum Services, Inc. – PSI), the Army, and even the Board all agree the services were rendered, however, since an official certified claim was not filed within six years from the date of the initial invoicing, the Government does not have to pay.

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Topics: Compliant Accounting Infrastructure, Litigation Consulting Support, Contracts & Subcontracts Administration, Government Regulations, Federal Acquisition Regulation (FAR)

Understanding Indirect Costs Under FAR and 2 CFR 200

Direct Costs

To understand indirect costs, it is always best to understand direct costs. Below is a comparison of the definition of direct cost in the Federal Acquisition Regulations (FAR) and 2 Code of Federal Regulation (CFR) 200. FAR Part 31 provides the cost principles for commercial for-profit organizations and 2 CFR 200 Subpart E provides the cost principles for all other organizations (e.g., non-profits and educational institutions).

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Topics: Compliant Accounting Infrastructure, Government Regulations, Federal Acquisition Regulation (FAR), Grants & Cooperative Agreements (2 CFR 200)

Preparation for Union Negotiations Under a Collective Bargaining Agreement

Collective bargaining is a decisive process where the union and employer exchange proposals, share ideas, solve problems, and reach a written agreement. This occurs when an existing contract is about to expire or when a new bargaining unit is being organized.

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Topics: Human Resources, Government Regulations, Employers and Unions

What are the Benefits of 2 CFR 200.405(d) Direct Allocations?

Title 2 Subtitle A Chapter II of the Code of Federal Regulations (CFR) includes Part 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (i.e., grants and cooperative agreements). 2 CFR 200.405, Allocable costs, falls under Subpart E–Cost Principles applicable to all organizations that are not commercial for-profit organizations. 2 CFR 200.405(d) states:

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Topics: Compliant Accounting Infrastructure, Government Regulations, Federal Acquisition Regulation (FAR), Grants & Cooperative Agreements (2 CFR 200)