CPAs and Advisors with Your Growth in Mind

Government Contractors

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  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 contractor respectively must. 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.

Will Changes to Overtime Compensation Impact You?

Virtually all employers in America are facing a significant increase in payroll expenses, whether it is due to increases in minimum wage or the rising cost of providing employee benefits. Another major area for increasing payroll expenses, however, is overtime pay. In March 2014, President Obama issued a memorandum to the Secretary of Labor, directing him to “propose revisions to modernize and streamline the existing overtime regulations” [under the Fair Labor Standards Act (“FLSA”)]. In November 2014, the Department of Labor (“DoL”) indicated that it expected to issue proposed regulations related to overtime in February. Although the proposed regulations have. Read More.

Recent Changes to DCAA Guidance on Expressly Unallowable Costs

Dealing with expressly unallowable costs can be a nightmare for any contractor. Between vague audit results from auditors to unexpected Form 1 issuances, mitigating the effects of Defense Contract Audit Agency (“DCAA”) identified expressly unallowable costs can be like navigating through an obstacle course blind. To bring clarity and consistency to auditor identification of expressly unallowable costs, the DCAA has recently issued two new memorandums on what it considers to be an expressly unallowable cost in accordance with the Federal Acquisition Regulation (“FAR”) and Defense Acquisition Regulations System (“DFARS”), and how to identify and cite those expressly unallowable costs during. Read More.

Incurred Cost Submissions: When Adequacy Means Success

Contracting with the government is one of the few situations where the word “adequate” results in a sigh of relief. Having Business Systems or an Incurred Cost Submission (ICS) deemed “adequate” often times means that you were successful in justifying (or in some cases defending) your methodologies and practices. While the Defense Contract Audit Agency (“DCAA”) has a sizeable backlog of ICSs, they have not hesitated to reject an ICS, often with multiple pages of reasons why. For the next several months, most government contractors’ inboxes will overflow with blogs, articles and discussions of Incurred Cost Submissions, the Allowable Cost. Read More.