Billing & Accounting Systems
The Genesis of the Business Systems Rules: From Whence They Came
Did you ever wonder what the saying “The road to hell is paved with good intentions” means? Some believe it means that good intentions alone do not produce desired outcomes. I would venture to say that there is a corollary with the genesis of the Final Business System Rules and this old adage. While the intent was to save taxpayers from the fraud, waste and abuse perpetrated during recent wars by malevolent government contractors, the outcome remains unclear and may not align quite as well as with the rule’s original intent. Only the future holds the outcomes and adjustments that. Read More.
Observations and Implications Regarding the Final Business Systems Rule
Overview On February 24, 2012, the Final Rule pertaining to contractor business systems was adopted into law (DFARS Case 2009-D038). The final business system rule is very similar to the interim rule published on May 18, 2011. Major system reviews have been performed by the federal government since 1985. Internal controls have been a major focus of the federal government for several years and have been paid even more attention since the adoption of FAR 52.203-13, Contractor Code of Business Ethics and Conduct (effective as of December 24, 2007). One of the stated criteria of FAR 52.203-13 was to create. Read More.
Cost Estimating – Stepping Up the Game from Business System Rule to Shay Assad
Shay Assad , Director, Defense Pricing, Department of Defense, was the keynote speaker at the NCMA 2012 Aerospace and Defense Conference in Austin, Texas. He indicated that contractors were going to be asked to provide more information about costs when bidding on contracts. In his words, “The reality is we’re stepping up the game”. This emphasizes the contractors need for a formal cost estimating process to be used consistently in the preparation of cost proposals. The requirements of such a system are defined in the final business systems rule that was first published as an interim rule last year and documented as a final rule just this month.. Read More.
GAO Upholds DCAA’s Inadequate Accounting System Determinations
With the Defense Contract Audit Agency (“DCAA”) taking an aggressive stance on what is an adequate accounting system and the promulgation of the Defense Federal Acquisition Regulation Supplement (“DFARS”) business systems rule, including DFARS coverage of what is an adequate accounting system, contractors must pay close attention to their accounting systems. This internal scrutiny should be heightened by the fact that many solicitations are requiring offerors to submit evidence that they have adequate or approved accounting systems. Recently, the Government Accountability Office (“GAO”) has become involved in this process through a series of bid protest decisions involving the question of. Read More.
GovCon Seminar: Business Systems – Impact on Success or Failure (Tysons Corner – 9/22)
Join us as we discuss the administration of the interim rule and provide an overview of the key attributes of each of the covered business systems. We will answer the question “what now?” and provide insight to help you prepare for a business system audit and respond to any potential determinations of inadequacy. Experts from Cherry, Bekaert and Holland will cover the details of the following business systems: Contractor Business Systems Administration (DFARS 252.242-7005) Accounting System Administration (DFARS 252.242-7006) Earned Value Management System (DFARS 252.234-7002) Cost Estimating System Requirements (DFARS 252.215-7002) Material Management and Accounting System (DFARS 252.242-7004) Contractor Property Management System Administration (DFARS 252.245-7003). Read More.
Successful Bids Begin with an Adequate Accounting System
Whether you know it or not, your accounting system has a tremendous impact on your ability to successfully bid and perform on many types of federal contracts. If you have not already seen solicitations or RFPs that contain the requirement for an adequate or approved accounting system, you will soon. While government auditors have traditionally determined if a prime contractor’s accounting system was adequate, inadequate, or inadequate in part, this level of scrutiny now also applies to the subcontractor level. Click here for more information or to register to learn more about what steps you may need to take in order to. Read More.