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
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Topics:
Compliant Accounting Infrastructure,
Incurred Cost Proposal Submission (ICP/ICE),
Contracts & Subcontracts Administration,
DCAA Audit Support,
Government Regulations,
Federal Acquisition Regulation (FAR)
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.
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Topics:
Compliant Accounting Infrastructure,
Contracts & Subcontracts Administration,
DFARS Business Systems,
DCAA Audit Support,
Contractor Purchasing System Review (CPSR),
Government Regulations,
Federal Acquisition Regulation (FAR)
As more and more companies are acquiring companies or being acquired, a predominant question that arises is can I do work with my new or existing affiliates. The simple answer is yes, but there are specific requirements in the FAR on how transactions are performed between affiliates. The requirements of intercompany transactions are found in two primary cost principles FAR 31.205-26 – Materials Costs and FAR 31.205-36 Rental Costs.
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Topics:
Compliant Accounting Infrastructure,
DFARS Business Systems,
DCAA Audit Support,
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.
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Topics:
Compliant Accounting Infrastructure,
Contracts & Subcontracts Administration,
DFARS Business Systems,
Government Regulations,
Federal Acquisition Regulation (FAR),
Estimating System Compliance
DCAA has caught up on their incurred cost backlog and is concentrating effort on Truth in Negotiations Audits (i.e., Defective Pricing). The objective of the Truth in Negotiations audit is to determine whether a negotiated contract price was increased by a significant amount because a contractor did not submit or disclose current, accurate or complete cost or pricing data.
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Topics:
Proposal Cost Volume Development & Pricing,
DFARS Business Systems,
DCAA Audit Support,
Government Regulations,
Federal Acquisition Regulation (FAR)
On October 4, 2021, the Department of Health and Human Services (HHS) proposed an amendment to its Federal Acquisition Regulation (FAR) Supplement to support the HHS Electronic Invoicing Implementation Project and HHS’s transition to the Department of the Treasury’s Invoice Processing Platform. This rule would add HHS Acquisition Regulation (HHSAR) Subpart 332.70 (which is comprised of HHSAR 332.7000 through 332.7003) Electronic Submission and Processing of Payment Requests to provide policies and procedures for these requests.
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Topics:
Compliant Accounting Infrastructure,
Government Regulations,
Federal Acquisition Regulation (FAR)
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.
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Topics:
Contracts & Subcontracts Administration,
Government Regulations,
Federal Acquisition Regulation (FAR)