The DoD IG has started the audit – Are your Whistleblower policies up to date?

DoD Inspector General Audit on Whistleblower

We issued a blog in May 2021 addressing the Department of Justice, Inspector General. The IG found that DOJ contracts did not comply with the whistleblower requirements to include whistleblower clauses in the contract, disseminate the rights and protections in writing to employees, and include required information in confidentiality agreements/statements to employees. We indicated we would not be surprised to see the DoD IG pick up on this area and review DoD Contractors.

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Topics: DOD IG, DFARS Business Systems, Human Resources, Contractor Purchasing System Review (CPSR)

DFARS Case 2020-D008 – Prohibition on Pricing based on Historical Prices

In 2020 Congress directed through the National Defense Authorization Act (NDAA) that contracting officers be prohibited from determining that the price of a contract or subcontract is fair and reasonable based solely on historical prices paid by the Government. Congress goes on to provide that if the contractor fails to provide data supporting the proposed price, the contractor is ineligible for award, unless the head of the contracting activity (HCA) determines that it is in the best interest of the Government to make the award. Let’s face it they are saying contracting officer should be asking for “cost data.”

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Topics: Government Shutdown, DFARS Business Systems, Contractor Purchasing System Review (CPSR), Government Regulations

Provisional Billing Rates

This video and article discuss the importance of provisional billing rates for government contractors. If you have cost-reimbursable vouchers or progress payments based on costs, you want to make sure you have established provisional billing rates.

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Topics: Accounting System Compliance, DFARS Business Systems, DCAA Audit Support, Vlog

More to Report if you have DoD Service Contracts

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.

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Topics: Accounting System Compliance, Small Business Compliance, Contracts & Subcontracts Administration, Government Compliance Training, DFARS Business Systems, DCAA Audit Support, System Award Management (SAM), Government Regulations

Travel Costs Regulation & Myths for Government Contractors

Have questions regarding what travel costs are allowable? Do you think the travel regulations say you can never have first-class airfare reimbursed? Or do you think the regulation says you are restricted to a compact rental car? For the answer to these questions and more, check out our video on travel regulations and myths!

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Topics: Accounting System Compliance, DFARS Business Systems, Vlog

Acceptable Estimating System: NITAAC CIO-SP4 Points Scoring

The National Institutes of Health Acquisition and Assessment Center (NITAAC) released its long-awaited Request for Proposal (RFP) for the Chief Information Officer – Solutions and Partners (CIO-SP4) program on May 25, 2021. Phase I of the evaluation of offeror proposals will consist of validation of the offeror’s completed self-scoring sheet and ranking the offerors based on this scoring. Only the highest rated offerors will advance to phase 2 of the evaluation. Accordingly, every point counts!

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Topics: Proposal Cost Volume Development & Pricing, DFARS Business Systems, Estimating System Compliance

What Information Should I Include in a Commercial Item Determination?

A commercial item determination should define the item or service, document market research, identify the FAR 2.101 Commercial Item definition, and include a “determination” that the item is commercial. Sounds easy right!

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Topics: Proposal Cost Volume Development & Pricing, DFARS Business Systems, Contractor Purchasing System Review (CPSR), Commercial Determination

Is Your Company Familiar with the Whistleblower Laws?

Whistleblower claims are on the rise with alleged violations of health and safety laws as well as fraud and abuse under the CARES Act due to the pandemic. Employers need to ensure they are familiar with the whistleblower laws and their responsibilities under government contracts.

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Topics: DOD IG, DFARS Business Systems, Human Resources, Contractor Purchasing System Review (CPSR)

Material Management & Accounting System (MMAS) Requirements

The DFARS requires contractors to maintain compliant systems for Material Management and Accounting System (MMAS). This video and article will help you understand the requirements of a compliant Material Management and Accounting System.

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Topics: DFARS Business Systems, Vlog, Material Management & Accounting System (MMAS)

Subcontractor has to Report Executive Compensation – Say What?

What is FAR 52.204-10 – Reporting Executive Compensation and First-Tier Subcontract Awards?

FAR 52.204-10 requires the contractor to report executive compensation of first-tier subcontracts with a value of $30,000 unless an exemption applies. Contracting Officers are required to include the FAR clause 52.204-10, Reporting Executive Compensation and First-Tier Subcontract Awards, in all solicitations and contracts of $30,000 or more. A first-tier subcontract is a subcontract awarded directly by the contractor for the purpose of acquiring supplies or services for performance of a prime contract. This does not include long term arrangements between the prime and first-tier subcontractors for material or supplies that benefit multiple contracts.

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Topics: DFARS Business Systems, Contractor Purchasing System Review (CPSR)