Revenue Recognition Implementation: Getting Into the Details
By: Craig Hunter , Partner In our last newsletter, we discussed the highlights of the new revenue recognition standard and what everyone should begin to expect. In this article and future articles, we want to go into more detail about the specific requirements of the standard. As mentioned in the previous edition, the Financial Accounting Standards Board (“FASB”) released Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers: Topic 606. The new standard creates a whole new codification topic (ASC 606), and introduces in a new era of revenue recognition by replacing hundreds of pages of industry specific guidance with a. Read More.
Use of Cost Realism in Proposal Evaluations
By: Curt Smith, Manager, Government Contractor Services Group When negotiating a contract price, the primary concern of contracting officers (“CO’s”) should be the price that the government will pay to obtain the required supplies or services from a responsible contractor. Their objective should be to negotiate a contract type and price (or estimated fee and cost) that will result in reasonable contractor risk and provide the contractor with the greatest incentive for efficient and economical contract performance. To achieve this goal, the Federal Acquisition Regulation (“FAR”) requires agencies to establish a negotiating objective based upon a price or cost analysis.. Read More.
SBA Releases its Small Business Contracting Scorecard
On May 18, 2017, the Small Business Administration (“SBA”) released its annual small business contracting scorecard. This scorecard is a measure of how selected agencies are doing in regard to meeting their small business contracting goals. It should be noted that the scorecard only measures the performance of 24 agencies. Thus, it does not evaluate how all agencies are doing in meeting their small business goals. As described by the SBA, the annual Scorecard is an assessment tool which measures: (1) how well federal agencies reach their small business and socio-economic prime contracting and subcontracting goals; and (2) agency-specific progress. Read More.
Topics: Department of Veterans Affairs, Economically Disadvantaged WOSBs “EDWOSBs”, Federal Acquisition Regulation "FAR", Service-Disabled Veteran-Owned Small Business "SDVOSB", small business, Small Business Administration "SBA", Small Disadvantaged Businesses "SDBs", Supreme Court, the Historically Underutilized Business Zones “HUBZone”, veteran-owned small businesses “VOSBs”, Women-Owned Small Businesses “WOSB”
Help! The Government Took My Money and Gave it to a State!
By: John Ford , Senior Consultant, Government Contractor Services Group We all know from folk lore that the IRS can seize property from a taxpayer if the taxpayer is delinquent in paying its Federal taxes. However, did you know that the government can seize money from a taxpayer and pay it to a state? Cherry Bekaert’s GovCon Group recently had a client receive a notice that funds had been withheld on a contract with the Department of State related to a state income tax liability that the client and our tax department had received no prior notices of delinquency. After the outrage. Read More.
Can Contractors Rely on Previous DCAA Audit Findings?
By: John Ford , Senior Consultant, Government Contractor Services Group One of the more frustrating things that contractors face is Defense Contract Audit Agency (“DCAA”) auditors changing their minds about the allowability of costs. This is particularly troublesome if the contractor has been including the cost in its indirect cost pools for years without DCAA questioning the allowability of the cost, then, without warning, DCAA questions the cost and alleges that the cost is expressly unallowable. Compounding this is the fact that the claim by DCAA is asserted several years after the cost was incurred. In the meantime, the contractor has included. Read More.
Fair Pay and Safe Workplaces Nullified
On March 6, the Senate passed Joint Resolution 37, repealing President Obama’s Fair Pay and Safe Workplaces (“FPSW”) executive order, Executive Order 13653. Subsequently on March 27, President Trump issued an executive order revoking Executive Order 13673, section 3 of Executive Order 13683 of December 11, 2014, and Executive Order 13738 of August 23, 2016. The FPSW executive order was issued on July 31, 2014. Originally planned to take effect on October 25, 2016, the executive order required contractors and subcontractors to report certain labor law violations, to provide certain information to employees with their paychecks, and prohibited involuntary arbitration. Read More.