Lockheed Martin raised a great question to the ASBCA as to “whether the Fly America Act, 49 U.S.C. § 40118 (FAA) and Federal Acquisition Regulation (FAR) 52.247-63 only apply to direct personnel performing direct work on covered contracts, or also applies to indirect personnel or indirect travel.”[1] The Board declined to hear the case as there was no “live dispute” at hand.
[1] Armed Services Board of Contract Appeals Case No. 62377
Read More
Topics:
Compliant Accounting Infrastructure,
Incurred Cost Proposal Submission (ICP/ICE),
Contracts & Subcontracts Administration,
DCAA Audit Support,
Government Regulations,
Federal Acquisition Regulation (FAR)
Below is a novel thought, uttered in 1911 by the President of Columbia University, that may be equally true today:
I weigh my words when I say that in my judgment the limited liability corporation is the greatest single discovery of modern times. Even steam to electricity are far less important that the limited liability corporation, and they would be reduced to comparative impotence without it.[1]
[1] Corporate Law & Practice (Practicing Law Institute, 2nd Ed. 1999) at p. 11.
Read More
Topics:
Small Business Compliance,
Contracts & Subcontracts Administration,
Government Regulations
At the end of each of the DCAA audit programs for contractor business systems, DCAA discusses what it refers to as “Less Severe Significant Deficiencies.” These are clearly deficiencies which do not meet the DFARS definition of a “Significant deficiency.”[1] As a result, the withhold requirement provided for in DFARS 252.242-7005 cannot be applied.
Read More
Topics:
Compliant Accounting Infrastructure,
Contracts & Subcontracts Administration,
DFARS Business Systems,
DCAA Audit Support,
Contractor Purchasing System Review (CPSR),
Government Regulations,
Federal Acquisition Regulation (FAR)
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.
Read More
Topics:
Compliant Accounting Infrastructure,
Contracts & Subcontracts Administration,
DFARS Business Systems,
Government Regulations,
Federal Acquisition Regulation (FAR),
Estimating System Compliance
Wage Determination Clauses Can Bite You
What is the spookiest and scariest story for a government contractor? How about a story where the government imposes an expense on a contractor, but doesn’t allow for consideration of this expense in the contract value? So, in layman’s terms, losing money (profit) on government contracts. In a recent ASBCA decision, this is exactly what happened.
Read More
Topics:
Contracts & Subcontracts Administration,
Government Regulations,
Federal Acquisition Regulation (FAR)
In 2017 Congress directed through the National Defense Authorization Act (NDAA) that changes be made to the treatment of independent research and development (IR&D) costs and required the Defense Contract Audit Agency to provide as part of its annual report to Congress both independent research and development and bid and proposal (B&P) costs expended by DoD contractors. Congress intended this change to apply to indirect costs incurred on or after October 1, 2017. The Defense Acquisition Regulation (DAR) Council must have read over that part.
Read More
Topics:
Incurred Cost Proposal Submission (ICP/ICE),
Contracts & Subcontracts Administration,
DFARS Business Systems,
Government Regulations
On July 9th, 2021, the Department of Defense (DoD)issued a final rule in the Federal Register to implement 10 U.S.C. 2330a which requires the DoD to establish a data collection system to provide certain management information about an awarded contract or task order that is valued in excess of $3 million. This new rule is applicable for the following service acquisition portfolio groups:
- logistics management services
- equipment-related services
- knowledge-based services
- electronics and communications services
You may read the entire rule here.
Read More
Topics:
Compliant Accounting Infrastructure,
Small Business Compliance,
Contracts & Subcontracts Administration,
Government Compliance Training,
DFARS Business Systems,
DCAA Audit Support,
System Award Management (SAM),
Government Regulations