Small Business Size Standards: Inflation Adjustment to Monetary Based Size Standards
On January 25, 2016, the Small Business Administration (“SBA”) finalized an interim rule which adjusts the monetary amounts used by small businesses to determine a company’s small business status. The interim final rule, which was originally issued on June 12, 2014, became effective on July 15, 2014, with the comment period ending August 11, 2014, and the final interim rule being established in December of 2014. The size standards are effective February 26, 2016. To summarize, the SBA increased all industry specific monetary small business size standards by 8.73 percent. Additionally, the rule increased the alternate size standards for tangible net worth and. Read More.
Payment of Interim Vouchers under Cost Reimbursement Contracts
In the mid-1990’s, the Department of Defense (“DoD”) instituted a new policy of permitting contractors who met certain criteria to submit interim vouchers under cost reimbursement contracts directly to the Defense Finance and Accounting Service (DFAS) payment office. Under this policy, known as direct billing, the Defense Contract Audit Agency (“DCAA”) did not review these vouchers before they were sent to DFAS. By eliminating the DCAA review, contractors were able to be reimbursed much quicker for costs they had incurred in performing these contracts. However, in 2012, DoD changed this policy and eliminated the direct billing procedure. As currently written,. Read More.
Topics: Cost Reimbursement Contracts, Defense Contract Audit Agency "DCAA", Defense Federal Acquisition Regulation Supplement "DFARS", Defense Finance and Accounting Service "DFAS", Department of Defense "DoD", Memoranda for Regional Directors "MRDs"
Employee or Contractor: Did you do the Research?
By: Anne Yancey , Director, State Credits & Incentives There is no single test for determining whether a worker is an employee or an independent contractor and for employers, the lines are often blurred in making the distinction. In the eyes of the Internal Revenue Service (“IRS”), proper worker classification is mainly determined by the degree of control a company has over the employee. In contrast, the Department of Labor utilizes an economic reality test. Given the changing dynamic of today’s workforce, employers must singly carefully consider the facts of each situation in making the determination. An incorrect determination could have severe. Read More.
Will New Revenue Standards on Customer Contracts Impact You?
By: Sara Crabtree , Manager, Government Contractor Services Group U.S. Generally Accepted Accounting Principles (GAAP), as codified in the Accounting Standards Codification, does not provide one, all-inclusive general standard on revenue recognition that applies across the board to all transactions and entities. Companies follow various subtopics in the Codification or industry specific standards to determine the proper procedures for recognizing revenue. That will all change for contracts with customers once new revenue recognition standards go into effect. In May 2014, the International Accounting Standards Board (“IASB”) and Financial Accounting Standards Board (“FASB”) issued new requirements on recognizing revenue that derives from customer-based. Read More.
Topics: Accounting Standards Codification, Accounting Standards Update "ASU", Financial Accounting Standards Board "FASB", International Accounting Standards Board "IASB", International Financial Reporting Standards "IFRS", Topic 606, U.S. GAAP
Overtime on Government Contracts
By: John Ford , Senior Consultant, Government Contractor Services Group The use of overtime to perform government contracts can be a contentious topic, particularly in regard to uncompensated overtime. This article will address the following issues in regard to overtime on government contracts: The basic statutory requirements concerning overtime including what is an overtime premium; Overtime on cost reimbursement contracts; Overtime on time and materials (T&M) contracts; Overtime on contracts subject to the Service Contract Act (SCA); and Uncompensated overtime. The primary statute addressing overtime is the Fair Labor Standards Act (FLSA; “the Act”). The FLSA is administered by the Department of. Read More.
Topics: Code of Federal Regulations "CFR", Fair Labor Standards Act "FLSA", Federal Acquisition Regulation "FAR", Labor Hour Contracts "LH", Service Contract Act "SCA", Time and Materials Contracts "T&M"
DCAA and Executive Compensation after Taylor/Metron
By: John Ford , Senior Consultant, Government Contractor Services Group Within a period of approximately six months at the beginning of 2012, the Armed Services Board of Contract Appeals (“ASBCA”; “the Board”) issued two significant decisions concerning the process for determining reasonable compensation under Federal Acquisition Regulation (FAR) 31.205-6(b)(2). These decisions were J.F. Taylor, Inc., ASBCA Nos. 56105 and 56322 (Jan. 18, 2012) and Metron, Inc., ASBCA Nos. 56624, 56751 and 56752 (June 4, 2012). In both cases, the Defense Contract Audit Agency (“DCAA”) had questioned substantial amounts of compensation as being unreasonable. This conclusion was reached by following the standard procedure. Read More.
Topics: Armed Services Board of Contract Appeals "ASBCA", Contract Audit Manual "CAM", Defense Contract Audit Agency "DCAA", Federal Acquisition Regulation "FAR", Upper Limit of Reasonable Compensation "ULRC"