DODIG Report on DCMA Actions Regarding DCAA Incurred Cost Audit Reports
In a recent report from the Department of Defense Office of Inspector General (“DODIG”) (DODIG-2017-055, dated February 9, 2017) the DODIG found several instances when the Defense Contract Management Agency (“DCMA”) contracting officer’s (“CO”) actions did not comply with Federal Acquisition Regulation (“FAR”), DoD Instruction 7640.02, or DCMA instructions. The findings resulted from a review of 22 incurred cost reports judgmentally selected from a pool of 1,072 Defense Contract Audit Agency (“DCAA”) incurred cost reports issued between September 2013 and July 2015. In its review, the DODIG evaluated the appropriateness of DCMA actions on DCAA findings reported in the 22. Read More.
Topics: contracting officers, Defense Contract Audit Agency "DCAA", Defense Contract Management Agency "DCMA", Department of Defense Office of Inspector General, DoD Contract Audit Follow-up System, Federal Acquisition Regulation "FAR", Incurred Costs
The Fiscal Year End Could Lead to a Government Shutdown
With the memory of the 2013 government shutdown still fresh in everyone’s minds, there is serious potential for a reoccurrence as the 2017 fiscal year draws to a close. While for many Americans the prospect of a government shutdown may just mean skipping a trip to their favorite national park, it could lead to a slew of operational and financial issues for the government contracting industry. For those involved in the latter demographic, Alan Chvotkin, executive vice president and counsel at the Professional Services Council (“PSC”), states, “Now is the right time to prepare.” The timing of this fiscal year’s. 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.
Improvements to Subcontracting
On July 14, 2016, the Federal Acquisition Regulatory Council published a final rule in Federal Acquisition Circular 2005-89, effective November 16, 2016, intended to improve subcontracting with small business concerns. The new rule implements sections 1321 and 1322 of the Small Business Jobs Act of 2010. Under section 1321, the Federal Acquisition Regulation (“FAR”) was to be amended “to establish a policy on, subcontracting compliance relating to small business concerns.” Thus, the new rule makes many FAR provisions relating to subcontracting with small business concerns. We will not discuss all the changes here, but will highlight those that have a. Read More.
Topics: contracting officers, Cost Accounting Standards "CAS", Federal Acquisition Regulation "FAR", Federal Acquisition Regulatory Council, indefinite-delivery indefinite-quantity “IDIQ”, Subcontracting