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Government Contractors

The ASBCA Issues Two CAS Decisions

By: John Ford , Senior Consultant, Government Contractor Services Group Recently, the Armed Services Board of Contract Appeals (“ASBCA” or “the Board”) issued two decisions relating to the Cost Accounting Standards (“CAS”) that should be of interest to contractors. In the first decision, Raytheon Company, Space and Airborne Systems, ASBCA No. 58608 (August 19, 2016), the Board decided that the contracting officer had abused her discretion by failing to consider all the factors listed in Federal Acquisition Regulation (“FAR”) 9903.305 in determining whether increased costs to the government resulting from an accounting practice change were material. As a large contractor doing billions. Read More.

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Paid Sick Leave Now Required for Federal Contractors

By: Sara Crabtree , Senior Manager Effective November 29, 2016, the Department of Labor has issued regulations to implement Executive Order 13706, Establishing Paid Sick Leave for Federal Contractors, signed by President Obama on September 7, 2015. The Executive Order requires certain parties that contract with the Federal government to provide their employees with up to seven days (56 hours) of paid sick leave annually. Executive Order 13706 was signed by the President with the intention of increasing efficiency and cost savings in the work performed by contractors for the Federal government. The theory is that providing access to paid sick leave. Read More.

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Fair Pay and Safe Workplace Executive Order

By: Eric Poppe, Manager After over two years of waiting, guidance was published on August 25, 2016, to enact the Fair Pay and Safe Workplace, Executive Order 13673. Signed by President Barack Obama on July 31, 2014, the Order went into effect October 25, 2016 and has three distinct parts that impact Federal contractors: Part 1- Discusses and provides guidance on how an agency should consider any labor violations by the contractor when making contracting decisions, and requires the contractor to disclose certain labor violations. Part 2- Requires new paycheck transparency provisions for workers on Federal contracts that provide employees. Read More.

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Paid Sick Leave Now Required for Federal Contractors

Effective November 29, 2016, the Department of Labor has issued regulations to implement Executive Order 13706, Establishing Paid Sick Leave for Federal Contractors, signed by President Obama on September 7, 2015. The Executive Order requires certain parties that contract with the Federal government to provide their employees with up to seven days (56 hours) of paid sick leave annually. The use of paid sick leave cannot be made contingent on the requesting employee finding a replacement to cover any work time to be missed, nor can an employer require employees to use their leave in a minimum increment greater than. Read More.

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Episode 1: Manufacturing and Production Engineering Costs vs. Independent Research & Development Costs

For companies that incur manufacturing, production line, engineering or product development costs, determining the true nature of the cost can be difficult. The Federal Acquisition Regulation (“FAR”) points us to FAR 31.205-25 — Manufacturing and Production Engineering Cost, to help companies determine if the cost incurred should be considered a manufacturing and production engineering cost. However, the issue companies have is where one draws the line if the costs should actually be considered independent research & development (“IR&D”). Determining if the costs falls under FAR 31.205-25 or meets the definition of FAR 31.205-18 and is considered IR&D doesn’t just impact. Read More.

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The Auditor Strikes Back: Updated Cost Allowability Guidance Published by DCAA

During late summer, the Defense Contract Audit Agency (“DCAA”) published a “Selected Areas of Cost” guidebook to replace Chapter 7 of the DCAA Contract Audit Manual (“CAM”). The newly refreshed guidebook provides further direction for auditors and contractors on how to properly treat certain types of costs listed in Federal Acquisition Regulation (“FAR”) 31.2 regarding allowability. Specifically, an unlucky 13 areas of costs have been updated with additional guidance. Those costs include: Bonus and Incentive Compensation Joint Ventures and Teaming Arrangements Depreciation Insurance IR&D/B&P Idle Facilities and Idle Capacity Legal Patents Royalties Consultants Pensions Alcoholic Beverages Manufacturing and Production Engineering. Read More.

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