Redstone Government Consulting Blog (41)

5 Things You Need to Know Before Your Update

In previous blogs, we have recommended preparing a CAS Disclosure Statement (DS) soon after emerging from small business status. We also recommended reviewing your cost accounting practices prior to preparing a Disclosure Statement to prevent having to change afterwards and ending up requiring a cost impact statement. So, by now you are probably wondering what this mythical beast is and what is the big deal about preparing it.

Our Commercial Item Expert, Lynne Nalley, discusses and clarifies common questions and issues associated with commercial items and Commercial Item Determinations (CID).

This article is under review as a result of EO 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity, signed by President Trump on January 21, 2025. As we await further information from OFCCP and the courts, please reference this article for current status and action items.

If your company is subject to EEO-1 reporting or if you’re a contractor, Self ID forms are old news but as OMB has approved a new Voluntary Self-ID of Disability form, now is a good time for a refresher.

Watch as Kimberly Basden and Veronica Hughes face off in this episodes Bean Boozled Challenge. Who will be delighted with the yummy original and who will be dismayed with the yucky alternative?

Accounting for Bid and Proposal (B&P) Explained

Bid and Proposal is a topic that comes up with our contractor clients on a regular basis. Most questions surrounding this topic involve: whom at the contractor should be charging B&P, especially, contractor personnel that typically charge overhead or G&A. We understand why this is confusing. It is our opinion that the guidance per FAR (Federal Acquisition Regulations) and CAS (Cost Accounting Standards) regarding this topic is unclear and leaves contractors scratching their heads trying to be compliant.

While the government promotes full and open competition, and competition is the preferred method of subcontracting, there are situations where the contractor uses a “sole source” or a “single source” when awarding a subcontract/Purchase Order (PO). There is a difference between a sole source and a single source award.

DCAA’s Auditing More than ICS & Proposals?

Over the last few years, we have often written on the changing landscape of contractor business system audits.  Specifically, the fact that the DCAA has invested considerable resources into the audit of incurred cost proposals and proposals for most of the past decade, which has led to an inability to routinely audit contractor business systems, conduct routine post-award (TINA) defective pricing audits and other audits that should be a routine part of doing business with the government in a flexibly-priced environment.  The change in audit focus has been apparent since the end of 2018, but we are just now starting to see the true impact of the Agency’s adaptation to an audit world without a large volume of incurred cost audits. 

Are you Ready for the July 1^st Implementation Date?

The new United States-Mexico-Canada Agreement (USMCA) goes into effect on July 1, 2020. Are you ready?