What Government Contractors Should Expect from DCAA Audits After the Shutdown

Well, our friendly DCAA auditors are back after the Government shutdown. On December 2, 2025, Defense Contract Audit Agency (DCAA) issued a memorandum to their auditors titled, “Actions Required for Assignment Due Dates Following Furloughs.”

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Topics: Proposal Cost Volume Development & Pricing, Incurred Cost Proposal Submission (ICP/ICE), Small Business Compliance, Contracts & Subcontracts Administration, DCAA Audit Support, Government Regulations

Do Cybersecurity Maturity Model Certification (CMMC) Requirements Apply to Grants?

The Department of Defense (DoD) issued a final rule on September 10, 2025, amending the Defense Federal Acquisition Regulation Supplement (DFARS) to incorporate the requirements of the Cybersecurity Maturity Model Certification (CMMC) for FAR-based contracts and subcontracts, effective November 10, 2025.

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Topics: Small Business Compliance, Contracts & Subcontracts Administration, DFARS Business Systems, Government Regulations, Federal Acquisition Regulation (FAR), Cybersecurity, Grants & Cooperative Agreements (2 CFR 200)

SBA Releases Its Estimate of the Government Shutdown Impact on Small Business Lending

On October 21, 2025, the Small Business Administration (SBA) released a state-level analysis or estimate of the impact of a government shutdown on small business lending. The shutdown has frozen the SBA’s core 7(a) and 504 small-business lending programs. These lending programs are designed to support small businesses’ access to funds to acquire or improve long-term fixed assets such as real estate, machinery, and equipment.

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Topics: Compliant Accounting Infrastructure, Small Business Compliance, Government Regulations

DFARS Final Rule for Cybersecurity Maturity Model Certification (CMMC) program

Department of Defense (DoD) issued a final rule on September 10, 2025, amending Defense Federal Acquisition Regulation Supplement (DFARS), incorporating contractual requirements under the Cybersecurity Maturity Model Certification (CMMC) program as part of the National Defense Authorization Act for FY 2020 to enhance cybersecurity for the US defense industrial base. The final rule is effective November 10, 2025.

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Topics: Contracts & Subcontracts Administration, DFARS Business Systems, Government Regulations, Federal Acquisition Regulation (FAR), Cybersecurity

Recent ITAR Amendments Expand the U.S. Munitions List and Indicate Further Expansion

The U.S. Department of State’s Directorate of Defense Trade Controls (DDTC) has finalized a significant set of amendments to the International Traffic in Arms Regulations (ITAR), effective September 15, 2025, which expand the U.S. Munitions List (USML) and introduce new definitions and a licensing exemption. These changes mark the first time in years that DDTC has expanded the USML’s coverage more than it has reduced it. The final rule amends 15 of the 21 USML categories, representing a substantial increase in the number of controlled items.

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Topics: Contracts & Subcontracts Administration, Contractor Purchasing System Review (CPSR), Government Regulations, Export & Import, Material Management & Accounting System (MMAS), Manufacturing Operations Consulting

Steps to Take Now to Mitigate Federal Government Shutdown Impacts

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.

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Topics: Contracts & Subcontracts Administration, Government Regulations, REAs, Claims & Terminations

DCAA Says Good-Bye to Its Field Detachment

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.

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Topics: Contracts & Subcontracts Administration, DCAA Audit Support, Government Regulations

Can DoD ask a Contractor for Cost Data on a Fixed-Price Contract or Subcontract?

Well, of course, The Department of Defense (DOD) can. The three most common situations where DoD requires cost data on a fixed price contract are:

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Topics: Proposal Cost Volume Development & Pricing, Contracts & Subcontracts Administration, DFARS Business Systems, Government Regulations, Federal Acquisition Regulation (FAR)

How to Identify, Track, and Exclude Unallowable Costs in QuickBooks Online

Government contractors deal with a unique set of rules when it comes to expenses. FAR Part 31 lays out the specific guidelines on what you can and cannot charge to the government. If unallowable costs slip through, you could face compliance problems or see expenses disallowed in an audit.

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Topics: Compliant Accounting Infrastructure, Small Business Compliance, Quickbooks, Government Regulations, Federal Acquisition Regulation (FAR)

Department of Energy is Placing a Cap on Reimbursement of Indirect Costs on Federal Awards

We knew this was coming based on the June 30, 2025, PF 2025-38 (FAL 2025-05) Implementation of Indirect and Fringe Benefits Cost Reimbursement Limits on Financial Assistance Awards guidance to Granting officers. However, we believed the May 15, 2025, preliminary injunction issued by the U.S. District Court for the District of Massachusetts in the case of Association of American Universities et al. v. U.S. Department of Energy would slow down DOE‘s implementation of the cap on indirect cost recovery for more than just Institutions of Higher Education (IHEs). Sadly, that is not the case.

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Topics: Compliant Accounting Infrastructure, Incurred Cost Proposal Submission (ICP/ICE), DCAA Audit Support, Government Regulations, Grants & Cooperative Agreements (2 CFR 200)