Inversion Legislation May Affect Government Contractors
In a summer dominated by foreign policy and global conflict, one of the few domestic issues to garner significant coverage from both the media and Washington has been the topic of corporate “inversion.” Inversion refers to the tax reduction strategy of reincorporating overseas to reduce the tax burden of foreign sourced income. Recent inversions, such as Burger King’s move to Canada, have prompted lawmakers on both sides of the aisle to not only re-examine our current inversion laws, but also the entire U.S. corporate tax structure. With a top nominal corporate tax rate among the highest in the developed world,. Read More.
SBA Hits Small Business Award Threshold
On August 1st, the Small Business Administration (“SBA”) announced that the federal government had reached its small business procurement goal for the first time since 2005. Each year, federal agencies are mandated by statute to award 23 percent of all contracts to qualifying small businesses. The Fiscal Year (FY) 2013 SBA Scorecard indicated that 23.39 percent of prime contract awards, valued at $83.1 billion, were awarded to small businesses. The positive news includes several areas of note. Awards to Small Disadvantaged Businesses (SDB) accounted for 8.61 percent of prime contract awards, far outpacing the SBA’s goal of 5 percent. Awards. Read More.
Cybersecurity Requirements: Another Challenge for Government Contractors
With all the recent data security breaches, it is not surprising that the U.S. Government is starting to crack down on cybersecurity for their government contractors. Approaches the U.S. Government are taking include issuing laws, regulations and standards that require contractors to take security measures for safeguarding their data. On July 7, 2014, President Obama signed into law the Intelligence Authorization Act for Fiscal Year 2014 (Public Law 113-126). This law requires intelligence contractors with security clearances to promptly report network and information system breaches, and provide government investigators access to the contractors’ systems that have been comprised. Additionally, the. Read More.
DoD Inspector General Issues Two Reports on DCAA Quality Control
On August 27, 2014, the Defense Contract Audit Agency (“DCAA”) issued Memorandum for Regional Directors (MRD) 14-PAS-014(R) , captioned ”Audit Guidance on Removal of Modified GAGAS Statement in Audit Reports”. As background for this MRD, Generally Accepted Government Auditing Standards (GAGAS) require audit organizations to obtain an external peer review at least once every three years. For DCAA, the external reviews are performed by the Department of Defense’s (“DoD”) Inspector General. In August 2009, the Inspector General revoked its previous approval of DCAA’s quality control program. As a consequence, since August 2009, DCAA has been unable to state that it performed its audits in accordance with. Read More.
Significant Proposed Changes to DFARS Business System Monitoring Requirements
On July 15, 2014, the Department of Defense (“DoD”) issued a proposed rule to amend the Defense Federal Acquisition Regulation Supplement (DFARS) on government contractor business system requirements. The comment period for the proposed change ended on September 15, 2014. The proposed rule requires that contractors begin annual self-evaluations and reporting on their accounting system, material management and accounting system (MMAS), and estimating system, for those contractors required to maintain approved systems in accordance with the DFARS business system requirements. In addition, a Certified Public Accountant (CPA) audit is required to be performed by an independent firm of the contractor’s. Read More.
Topics: Accounting Systems, Audit, Defense Contract Management Agency "DCMA", Defense Federal Acquisition Regulation Supplement "DFARS", Department of Defense "DoD", Earned Value Management System "EVMA", Estimating Systems, Government Contractors, Material Management and Accounting System "MMAS", Property Management System Evaluations, Purchasing Systems
GSA Looks to Consolidate Professional Services Schedules
The General Services Administration (“GSA”) has announced its intention to consolidate Multiple Award Schedule (MAS) offerings over the next year. GSA has over 4,400 professional services contracts across eight different schedules. As we have reported in prior posts regarding GSA, the administration is looking for new ways to reduce its costs amid ever-growing budget shortfalls. In addition to cutting contracts who fail to meet the minimum sales requirements, GSA is looking to consolidate what it is now considering to be redundant schedules. According to GSA, there are approximately 527 contractors who hold more than one professional service schedule contract. These. Read More.