Redstone Government Consulting Blog (42)

As more and more companies are acquiring companies or being acquired, a predominant question that arises is can I do work with my new or existing affiliates. The simple answer is yes, but there are specific requirements in the FAR on how transactions are performed between affiliates. The requirements of intercompany transactions are found in two primary cost principles FAR 31.205-26 – Materials Costs and FAR 31.205-36 Rental Costs.

This is the third blog in a three-part series on progress payments for Government contractors. In this blog we will discuss the estimate to complete, and the adjustments needed when there is a projected loss on a contract.

Overview

• The US Supreme Court blocked the OSHA vaccine and testing mandate for large private employers.
• The Federal Contractor mandate established by EO 14042 is still subject to a nationwide injunction entered by the United States District Court for the Southern District of Georgia on December 7, 2021. This injunction has been appealed to the Eleventh Circuit Court of Appeals by the Biden Administration. This injunction ordered the federal government to temporarily stop enforcement of the COVID vaccine mandate for federal contractors.  
• Effective January 30, 2022, the federal contractor minimum wage will be increased to $15 per hour for covered employees working on covered contracts.
• Contractors will be able to register for the OFCCP’s new Contractor Portal on February 1, 2022.
• The 2021 EEO-1 Data Collection period is tentatively set to open on April 12, 2022.
• Group health plans and insurers must cover or reimburse in full for over-the-counter COVID-19 tests.

I talk with business owners all the time that are either just starting their business, or just getting their existing business into government contracting, and one of the questions we address almost weekly is – Which accounting software built for government contractors should I go with? The answer is, maybe none of them. While the popular govcon accounting software solutions are a really good option for many government contractors, you certainly aren’t limited to those. If you’re a relatively small government contractor, then other products such as QuickBooks might be a better software solution.

This video provides a summary of the status of the various COVID-19 vaccine mandates, with a focus on Executive Order 14042. Although this federal contractor vaccine mandate is subject to an injunction, covered contractors still have some COVID-related obligations for maintaining a safe workplace that should not be overlooked. We also discuss the importance of good faith compliance efforts, including clear communications to employees regarding their right to request accommodation for those contractors that have moved forward with their policies on mandating vaccines. We note that since this recording (January 13, 2022), the United States District Court for the Southern District of Texas also blocked the vaccine mandate for Federal workers.

This is the second blog in a three-part series on progress payments. This blog addresses Line 5, Contract Price and Line 11, Total eligible costs on the SF1443 Contractor’s Request for Progress Payment Form.

As the year comes to an end, many of you are ready to close the door on 2021. But before you dive head-first into 2022, let's take a moment to ensure you have finished your year-end process. Unanet is a comprehensive accounting system that offers clear procedures for closing. Still, we all know that government contracting comes with unique accounting challenges, and extra help can come in handy! Therefore, we at Redstone GCI wanted to provide a checklist and a few links to the Unanet Support Site to help guide you through the Year-End Process smoothly and efficiently:

Merry Christmas and Happy New Year from all of us at Redstone GCI

A special thanks to our charitable committee members for 2021 and to all of the organizations we've supported for their efforts in making the world a better place for everyone.

This is the first blog on a three-part series on progress payments and discusses progress payments and the applicable rates.