The federal government has shut down again. It happens. With fiscal year 2025 funding lapsed and in our rearview mirror, how can government contractors mitigate the risk of potential stop-work orders and financial hardship? In this article, we discuss areas to consider not only to mitigate your risk but also to avoid significant financial hardship.
Topics: Contracts & Subcontracts Administration, Government Regulations, REAs, Claims & Terminations
Six months after the Defense Contract Audit Agency (DCAA) made its major reorganization, it made another one: the elimination of its Field Detachment (FD) as a separate entity within DCAA. The Field Detachment was a separate entity within DCAA that handled DCAA’s classified audit work. It was a separate and distinct DCAA entity from the current Land, Air, and Sea Directorates of DCAA.
Topics: Contracts & Subcontracts Administration, DCAA Audit Support, Government Regulations
The Federal Acquisition Regulatory (FAR) Council, consisting of the Office of Federal Procurement Policy (OFPP), DoD, GSA, and NASA, has finalized changes to acquisition-related thresholds in the FAR to account for inflation. Published in the Federal Register on August 27, 2025, and effective October 1, 2025, this rule (FAR Case 2024-001, FAC 2025-06) fulfills the statutory requirement under 41 U.S.C. 1908 to review and adjust thresholds every five years using the Consumer Price Index (CPI) for all urban consumers.
Topics: Contracts & Subcontracts Administration, DFARS Business Systems, Government Regulations, Federal Acquisition Regulation (FAR)
The Department of Defense (DoD) has finalized a rule that will significantly impact contractors providing management, scientific, and technical consulting services. Published in the Federal Register on August 25, 2025, and effective October 24, 2025, the rule (DFARS Case 2024-D007) implements section 812 of the FY 2024 National Defense Authorization Act (NDAA). Under the new requirement, contracting officers cannot award contracts assigned to NAICS codes beginning with 5416 if the offeror, or its subsidiaries or affiliates, holds a contract for consulting services with certain covered foreign entities, unless an approved conflict-of-interest mitigation plan is in place.
Topics: Contracts & Subcontracts Administration, DFARS Business Systems, Government Regulations, Federal Acquisition Regulation (FAR)
The Department of Defense (DoD) has finalized changes to acquisition-related thresholds in the Defense Federal Acquisition Regulation Supplement (DFARS) to reflect inflation. Published in the Federal Register on August 25, 2025, and effective October 1, 2025, this rule (DFARS Case 2024-D002) fulfills the statutory requirement under 41 U.S.C. 1908 to review and adjust thresholds every five years using the Consumer Price Index (CPI) for all urban consumers.
Topics: Contracts & Subcontracts Administration, DFARS Business Systems, Government Regulations, Federal Acquisition Regulation (FAR)
The President’s Executive Order – Restoring Common Sense to Federal Procurement involves a comprehensive overhaul of the Federal Acquisition Regulation (FAR) and subsequently the FAR Supplements. As the FAR is being updated it includes changes to contract provisions and clauses. The System for Award Management (SAM.gov), the official U.S. government website where entities register to do business with the federal government is also being streamlined.
Topics: Contracts & Subcontracts Administration, DCAA Audit Support, Contractor Purchasing System Review (CPSR), System Award Management (SAM), Government Regulations, Federal Acquisition Regulation (FAR)
A well-configured HR system can feel like the backbone of a thriving organization by streamlining processes, enhancing employee experience, and offering powerful data insights. However, even the most advanced HR technology can quickly become a liability if one critical element is overlooked - compliance. Government contractors risk turning their greatest HR asset into a hidden source of vulnerability if they fail to consider compliance in their implementation strategy.
Topics: Small Business Compliance, Contracts & Subcontracts Administration, DCAA Audit Support, Human Resources, Government Regulations, Office of Federal Contract Compliance Programs, Service Contract Act, Organizational Change Management Consulting, UKG Ready HR Software Consulting
This is a myth. Let’s review the commercial definition:
FAR 2.101 Commercial Product definition Paragraph 1 states:
(1) A product, other than real property, that is of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes, and–
(i) Has been sold, leased, or licensed to the general public; or
(ii) Has been offered for sale, lease, or license to the general public;
Topics: Contracts & Subcontracts Administration, DFARS Business Systems, Government Regulations, Federal Acquisition Regulation (FAR), Commercial Item Determination
A little background – On April 15, 2025, Executive Order 14275, Restoring Common Sense to Federal Procurement, was issued. The intent of this order was to make revolutionary changes to the Federal Acquisition Regulations (FAR) to make the federal acquisition process more efficient and cost-effective. Section 2 states, “It is the policy of the United States to create the most agile, effective, and efficient procurement system possible. Removing undue barriers, such as unnecessary regulations, while simultaneously allowing for the expansion of the national and defense industrial bases is paramount. Accordingly, the FAR should contain only provisions required by statute or essential to sound procurement, and any FAR provisions that do not advance these objectives should be removed.”
Topics: Compliant Accounting Infrastructure, Proposal Cost Volume Development & Pricing, Contracts & Subcontracts Administration, DFARS Business Systems, DCAA Audit Support, Contractor Purchasing System Review (CPSR), Government Regulations, Federal Acquisition Regulation (FAR), Commercial Item Determination
Are you interested in learning how to set up and manage labor categories in Unanet to improve project management, timekeeping, and labor cost compliance for government contractors? Labor categories are critical for organizing and tracking work performed on contracts, especially on Time & Materials (“T&M”) contracts. While cost type and fixed price billing may not require a labor category for billing purposes, they can still play an important role in project management and budgeting at the contract level. In accounting systems like Unanet, these categories classify time into roles such as Project Manager or Senior Software Developer that are tied to billing rates, simplifying T&M billing. Unanet also provides flexibility in how labor categories are derived, allowing setup at the admin/master level, project level, person level, or person-to-project assignment level. This adaptability ensures alignment with contract requirements regardless of how your business is structured.
Topics: Compliant Accounting Infrastructure, Proposal Cost Volume Development & Pricing, Small Business Compliance, Contracts & Subcontracts Administration, Human Resources, Unanet