When Should I Be Concerned About the FAR Overhaul?

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.”

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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

Bridging the Gap Between the Project Status Report and Revenue Worksheet in Costpoint

If you’ve ever found yourself scratching your head over why the Project Status Report (PSR) doesn’t match the Revenue Worksheet (Rev WS), you are not alone. These two reports serve different purposes and speak two distinct languages. But to truly understand the differences, you must start with what is happening behind the scenes in the Costpoint Project Ledger.

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Topics: Compliant Accounting Infrastructure, DCAA Audit Support, Deltek Costpoint

What is the De Minimis Rate and Who Can Elect to Use It?

The de minimis rate is an indirect rate that can be elected by Non-federal entities (State, local government, Indian Tribe, Institution of Higher Education or non-profit) that do not have a current negotiated indirect cost rate agreement (NICRA). The de minimis rate is addressed in 2 Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, specifically 200.414(f).

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Topics: Compliant Accounting Infrastructure, DCAA Audit Support, Government Regulations, Federal Acquisition Regulation (FAR), Grants & Cooperative Agreements (2 CFR 200)

Understanding the Rules of Revenue Recognition for Government Contractors

Revenue recognition is a very critical and highly scrutinized aspect of accounting for government contractors. Whether you're working on cost-plus contracts, time and materials, or firm fixed price agreements, how and when you recognize revenue can significantly impact your financial reporting and compliance with government regulations.

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Topics: Compliant Accounting Infrastructure, DCAA Audit Support, Government Regulations, Cost Accounting Standards (CAS), Federal Acquisition Regulation (FAR)

Why Processes and Policies Matter More Than Software in Your HRIS Implementation

Successful Human Resources Information System (HRIS) implementation isn’t just about choosing the right system; it’s about aligning that system with your internal business processes and formalizing documented policies and procedures. In this article, we explore how clearly defined workflows, roles, and written policies are essential to getting the full value from platforms like UKG Ready, especially for government contractors where compliance is non-negotiable.

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Topics: DCAA Audit Support, Human Resources, Office of Federal Contract Compliance Programs, Service Contract Act, UKG Ready HR Software Consulting

The Good, the Bad, and the Ugly of Incurred Cost Audit Findings

The Good

Ok, finding some good is going to be a challenge. Let's start with the fact that the Defense Contract Audit Agency (DCAA) receives approximately 3,500 incurred cost proposals annually, but only audits around 500 of them. And even though DCAA is still auditing about 75% of the dollars submitted ($193B), only .3% is questioned ($760M), and only 31% of that is likely to be sustained by contracting officers. This comes from the DCAA Report to Congress for 2024.

See, we did find some good.

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Topics: Compliant Accounting Infrastructure, Incurred Cost Proposal Submission (ICP/ICE), DCAA Audit Support, Government Regulations, Federal Acquisition Regulation (FAR)

Are Representations (Reps) and Certifications (Certs) Required of Subcontractors?

If only the Government made this an easy answer. There are some representations and certifications that you need to get from your subcontractors. However, many in both industry and the Government think the requirement for “Reps and Certs” flows down in all cases.

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Topics: Contracts & Subcontracts Administration, DFARS Business Systems, DCAA Audit Support, Contractor Purchasing System Review (CPSR), Government Regulations, Federal Acquisition Regulation (FAR)

Project Status Reports Explained and Why They Are Critical for Project Success

Project status report (PSR), job status report, project summary, many names for the same thing…a report that gives the user a summary of the information associated with a project. The project status report in Deltek’s Costpoint is a snapshot of a project's current status at any given time. It contains data from many different sources and is useful to Accounting, Project Management, and Leadership to assess the current position of a project or contract. This report has a range of options to provide users with the specific information related to the project they would like to review.

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Topics: Compliant Accounting Infrastructure, Government Compliance Training, DCAA Audit Support, Deltek Costpoint

Is The Cost of Providing Water and Coffee in Your Breakroom Allowable?

I believe most prudent businesspeople would consider providing water and coffee to their employees and customers a reasonable business expense and consider it an allowable cost. Well, Defense Contract Audit Agency (DCAA) auditors are not most people and, in most cases, have little to no business experience, so they believe providing water and coffee is an unallowable cost.

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Topics: Compliant Accounting Infrastructure, Incurred Cost Proposal Submission (ICP/ICE), DCAA Audit Support, Government Regulations, Federal Acquisition Regulation (FAR)

Common Accounting Mistakes That Get Government Contractors in Trouble

Government contracts can be a great opportunity. They often come with stability, a steady income, and the chance to scale your business. But they also come with strings attached: a detailed set of rules and expectations, especially when it comes to your accounting. Unfortunately, many government contractors learn about those rules the hard way, which is after they’ve already made a mistake. In this article, we’ll walk through some of the most common accounting mistakes that can derail even experienced contractors, cost you money, or worse, jeopardize your contracts.

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Topics: Compliant Accounting Infrastructure, Incurred Cost Proposal Submission (ICP/ICE), Small Business Compliance, DCAA Audit Support, Quickbooks, Government Regulations, Federal Acquisition Regulation (FAR)