CPAs and Advisors with Your Growth in Mind

Government Contractors

Can a Unilateral Modification be Considered a Government Claim?

When doing work for the government via contract and especially for contract work that extends beyond a few months, it is almost certain that a least one contract modification will need to be issued. Contract modifications can be issued for a variety of reasons, such as for a change in funding, scope, terms and conditions, or to make administrative changes. The reason for a contract modification falls under two types, either a bilateral or a unilateral modification. A bilateral modification, as defined by Federal Acquisition Regulation (FAR) 43.103, Types of Contract Modifications, is a modification that is signed by both. Read More.

SBA Proposes Rule to Establish a Mentor-Protégé Program for All Small Businesses

After much anticipation, the Small Business Administration (“SBA”) has issued a proposed rule to establish a mentor-protégé program for all small businesses. The proposed rule can be found here in its entirety. Comments are due from the public on or before April 6, 2015. Currently, the mentor-protégé program is only available to businesses certified in the 8(a) Business Development Program. The proposed rule, however, connects small businesses and set-asides (the protégé) with larger businesses (the mentors), and the current mentor-protégé program for 8(a) set-asides would roll into this larger program. The SBA commented in the proposed rule that it considered setting. Read More.

Allowable Compensation Caps: Blended or Specific Rates?

By: Robert A. Farquer , CPA, CGMA; Senior Consultant Section 702 of the Bipartisan Budget Act of 2013 (PL 113-67) reduced the contractor and subcontractor allowable compensation cap from $952,308 to $487,000 for contracts awarded on or after June 24, 2014, representing a 49 percent reduction. Calculated by the Bureau of Labor Statistics the cap will be adjusted annually to reflect the change in the Employment Cost Index for all workers. As always, contractors can pay whatever amounts they deem appropriate, but the government will only reimburse (up to) the capped amount. Previously, the National Defense Authorization Act for Fiscal Year 2012 (PL. Read More.

Do You Feel Penalty-Proof Under the Affordable Care and Service Contract Act in 2015?

By: John T.H. Carpenter ; Principal As has been the case for the past five years, turning the calendar to a new year has brought changes in employer and individual requirements under the Affordable Care Act (ACA). We have been fielding a stream of questions from employers who have employees covered by the Service Contract Act (SCA) and how SCA compliance fits in with ACA compliance. The short answer to all questions is that the implementation of ACA, which obviously impacts most employers and individuals across the U.S., has not changed any of the existing SCA requirements. It falls on the employer to. Read More.

Statute of Limitations for Asserting Claims

By: John N. Ford, JD ; Senior Consultant & Kenneth D. Bricker, CPA ; Partner It is a well-known fact that the Defense Contract Audit Agency (“DCAA”) has a backlog of contractor incurred cost submissions (ICS) awaiting audit. In some cases, the backlog exceeds six years. This raises the question as to what the delay in conducting these audits will have on the government’s ability to recover any overpayments that resulted from billing rates being higher than final indirect cost rates. In this article, we will address that issue. The Federal Acquisition Regulation (FAR) contains at 33.206 and 52.233-1 a period of time within which the government or. Read More.

Your Guide Forward in a Slow-Growth or No-Growth Federal Marketplace: Strategic Use of Joint Ventures

By: David J. Lundsten , CPA, CVA; Audit & Advisory Services Partner, and John N. Ford , JD; Senior Consultant In Part 1 of this article, we will discuss the nature of a Joint Venture (JV) and some of the general regulations that apply to them. In Part 2, which will be published in the Spring edition of our GovTract Newsletter, we go into detail about the two main types of JVs, some of the more significant regulations you need to know, and considerations in choosing the type of JV that suits your needs. Part 1 The days of double-digit growth in almost every federal government. Read More.