Planning vs. Organization Costs

A White paper by John C. Shire, CPA, Director

Where does allowable planning end and unallowable organization begin? Two FAR clauses are at odds with each other in terms of merger/acquisition activities being allowable. Contractors need to understand where their planning activities cross the line from allowable, generalized consideration of an opportunity, to unallowable, where specific actions are taken to plan for a specific opportunity. Documenting decision-making, clarifying employee activity, and noting the point at which the organization’s decisions move from a generalized consideration to a specific opportunity plan will help avoid having salaries and employee efforts ruled unallowable by the Government.

What Are The Prime Contractor’s Risks Related to Subcontracts

A White paper by Asa Gilliland President & Director &
Robert L. Eldridge, CPA, Director

Due to several factors, including the desire to reduce the work for DCAA auditors, the federal government has put subcontractor audit responsibility on prime contractors. Although not specifically assigned to prime contractors in the regulation, it is assumed their responsibility. Learn why it is important for prime contractors to have guidance to monitor subcontractor awards and handle contract closeouts and audits.

DFARS Business Systems White paper

A white paper by Michael Steen, Senior Advisor & Robert L. Eldridge, CPA, Director

The proposed DFARS amendments related to case 2012-D042 shed light on some of the inefficiencies surrounding the DCAA auditing concerns, both in the burden shift to contractors and the financial burden of juggling both internal audits and external independent CPA audits. When combined with increased DCAA oversight, government contractors could experience oppressive auditing requirements.

Limitation of Funds Clause Equals No Cost Recovery

A White paper by the Redstone Team

When negotiating a DoD contract, it is crucial to fully comprehend the Limitations of Funds clause to avoid later settlement agreement negotiations, which can lead to unrecoverable costs. This Armed Services Board of Contract Appeals (“ASBCA”) case spells out clearly what can happen.

Government Contracting and Uncompensated Overtime

A White paper by Wayne Murdock, CPA

Although hourly employees are protected under FLSA (Fair Labor Standards Act), salaried employees do not enjoy the same protection. With the 2015 revision of FAR 52.237-10, all uncompensated overtime must be accounted for. DCAA and auditors are most concerned about this overtime as a requirement for an adequate accounting system. Although the CAM (Contract Audit Manual) offers plenty of guidance, it is up to contractors to fully understand and implement the accepted methods to prevent DCAA rejection.

The Audit World’s Biggest Myths

A White paper by Wayne Murdock, CPA

It is important to remember that DCAA’s primary goal is to ensure the government gets a fair price for products and services, so the auditor is not visiting your location for your benefit. By knowing this, you can, however, be prepared when dealing with auditors. See why researching and educating your auditing staff can make a DCAA audit a successful experience.