DoD Inspector General Sustains Hotline Complaint that DCAA did not Comply with GAGAS
In the past few years, the Department of Defense’s (“DoD”) Inspector General (IG) has conducted several reviews of the Defense Contract Audit Agency’s (“DCAA”) compliance with Generally Accepted Government Auditing Standards (GAGAS). According to a recent report, DODIG-2015-061, dated December 23, 2014, the IG sustained a hotline complaint alleging that DCAA: failed to comply with GAGAS when the auditor concluded that the contractor did not adequately support its claimed subcontract costs; and inappropriately applied a 20 percent decrement as a basis for questioning subcontract costs. Based on a statistical sample of 70 subcontract invoices, DCAA concluded the contractor could not. Read More.
Is the Federal Government Moving to a New Contracting Model?
In its continued effort to save the government (read: we the taxpayers) money, the General Services Administration (“GSA”) has implemented its Prices Paid Tool, which is available for all federal government agencies to use, as a part of the Federal Strategic Sourcing Initiative. This tool, developed with the Office of Management and Budget (“OMB”), is GSA’s effort to provide greater visibility on the prices paid by government agencies for commonly purchased goods and services bought through GSA Schedules. The pilot phase is currently focused on office supplies, domestic delivery services and Federal Acquisition Service (FAS) Alliant and Alliant Small Business. Read More.
New Court Case May Change the Political Contribution Rules for Government Contractors
On September 30th, the U.S. Court of Appeals for the D.C. Circuit heard arguments on a case challenging the Federal Election Campaign Act’s longstanding rules barring government contractors from making political contributions to candidates seeking election to Federal office. The case, Wagner v. FEC, was granted its appeal hearing after the U.S. Court of Appeals for the D.C. Circuit vacated the lower court’s ruling on jurisdictional grounds. The plaintiff’s challenge is based on two main assertions. The first assertion is that application of the current law does not accomplish its stated purpose. The plaintiff argues that contractor donations to congressional. Read More.
ASBCA Decides Government Shutdown Case
It is certain that most contractors recall the government shutdown in October 2013. Many questions were raised as to whether contractors would be able to be paid for days they did not work as a result of the shutdown. On November 10, 2014, the Armed Services Board of Contract Appeals (“ASBCA”; “the Board”) issued a decision in the Appeal of Amaratek, ASBCA Nos. 59149, 59395, that should help answer some questions posed by the shutdown (although the decision is non-precedential). In 2011, the Army awarded Amaratek a contract for material analysis laboratory services at the Yuma Proving Ground in Yuma,. Read More.
Records Retention, Audit Rights and Statute of Limitations Webinar
This webinar discusses the basics of what government contractors need to know about records retention and government requests for records. John Carpenter, Leader of Cherry Bekaert’s Government Contractor Services Group and John Ford, a Senior Consultant in the Government Contractor Services Group offer their expertise and advice on the following topics: Records Retention Periods for Contractors Types of Records Government Rights to Audit those Records Statute of Limitations
New Revenue Recognition Standards Are On the Way
The government contracting industry could find itself accounting for revenue under the new revenue recognition standards, Accounting Standards Update (ASU) No. 2014-09, as result of a joint project from the Financial Accounting Standards Board (“FASB”) and the International Accounting Standards Board (“IASB”). The good news to the government contracting industry is that the revenue recognition standard isn’t set to become effective for U.S. Generally Accepted Accounting Principles (GAAP) reporters until the first interim period within annual reporting periods beginning after December 15, 2016, for public entities, and after December 15, 2017, for non-public entities with no early adoption permitted. The. Read More.