Redstone Government Consulting Blog (49)

The topic of accounting system adequacy seems to be a recurring issue for many in the government contracting community.  Earlier this month in the ongoing “process of elimination”, GAO weighed in again on what is NOT considered a determination of accounting system adequacy.  In Shivoy B-413104.36, GAO rightfully denied a protest for unequal treatment in eliminating a proposed offeror due to lack of verification of a proposed subcontractor’s accounting system as adequate.

On December 18, 2018 the Administrative Judge, in ASBCA No. 61583, denied the contractor’s appeal and granted the Government’s request for summary judgement related to the contractor’s claim that it was entitled to a penalty waiver because the contractor did not demonstrate that it “had adequate policies, training, controls, and review systems, and that it inadvertently incorporated the [unallowable cost]” in its incurred cost proposals. This decision serves as a reminder of the importance of maintaining adequate policies and procedures.

FAR Part 31.205 -1 – Public Relations and Advertising Costs

“Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.” (American Marketing Association)

“Advertising is the action of calling something to the attention of the public especially by paid announcements.” (Merriam-Webster)

“Public relations (PR) is a strategic communication process that builds mutually beneficial relationships between organizations and their publics.” (Public Relations Society of America (PRSA))

Slowly is the word that always describes Government change, and acquisition process change is no exception.  Some of you will remember that the 2017 NDAA required DCAA to reduce the backlog of DoD incurred cost submissions and suspend work for other Departments.  But how many of you remember that it also created an Advisory Panel on Streamlining and Codifying Acquisition Regulations, better known as the Section 809 Panel? 

A recent DoD-IG (Department of Defense-Inspector General Report (DODIG-2019-070) has unfortunately reinforced DCAA’s audit interpretations of the reasonableness of contractor compensation (reference to FAR 31.205-6(b)). The IG (apparently with help from DCAA) reviewed ACO (Contracting Officer) actions to resolve/disposition DCAA (Defense Contract Audit Agency) advisory audit reports which included assertions that contractors had claimed unreasonable compensation (primarily for contractor executives). 

• RFP for 8(a) On Ramp can be found here: https://www.fbo.gov/index?s=opportunity&mode=form&id=31402bd0ff9188c41e8ec213e8375fc1&tab=core&_cview=1
• RFP for Small Business Pools 1, 3 and 4 can be found here: https://www.fbo.gov/index?s=opportunity&mode=form&tab=core&id=9f4b11d2c577b7ae6c5fc4ceae0320de

Key Dates (Subject to Change. Always check FBO/solicitation for latest info):

The budgeting process for any company can be a daunting process.  But, like most things, hard work pays off, and establishing a detailed budget is a critical element to ensure a healthy and profitable company.

Some of us have been tracking the long overdue Congressional mandate for the United States to achieve a ready-state for auditable financial statements.  Although it may come as a surprise, we’ve uncovered a somewhat reliable (thus somewhat unreliable) rumor that the next NDAA (National Defense Authorization Act) will include section 401(A.F.) which will require the Department of Defense (more specifically DCAA/Defense Contract Audit Agency) to provide technical assistance to all other agencies, inspector generals’, GAO (Government Accountability Office) and the hordes of independent private auditors who have thus-far failed in achieving that mystical milestone of fully auditable federal government financial statements.  

It’s everyone’s least favorite time of year.  That’s right, tax season.  For those of us who no longer work in public accounting, this time of year is now a welcome reprieve; although for us, it also marks the start of incurred cost season.  If you’re not sure what an Incurred Cost Submission is or have questions about that topic, visit our website for a variety of resources.

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.

It’s that time of year again! The 2018 EEO-1 survey officially opened on March 18, 2019 and is due on May 31, 2019.