New DCAA Guidance on Revised Policies Related to Low-Risk Incurred Cost Submissions
As the Defense Contract Audit Agency (“DCAA”) slowly pushes to eliminate Incurred Cost Submission (“ICS”) audit backlog, DCAA has recently published a new memorandum (“MRD”) revising guidance for selecting low-risk Incurred Cost Submission proposals less than $250 million in “auditable dollar volume” (“ADV”). Published on May 27, 2016, the memorandum revises the MRD 12-PPD-023(R), dated September 6, 2012, and MRD 13-PPD-021(R), dated October 29, 2013. While not specifically defined in the Federal Acquisition Regulation (“FAR”), Contract Audit Manual (“CAM”) or elsewhere, ADV is typically considered by DCAA to be the total contract cost for flexibly priced government contracts and subcontracts. Read More.
Subcontractor Oversight (Who’s Responsible?)
By: John N. Ford, JD ; Senior Consultant Who has privity? 42.505 – Post-award Subcontractor Conferences (a) The prime contractor is generally responsible for conducting post-award conferences with subcontractors. However, the prime contractor may invite Government representatives to a conference with subcontractors, or the Government may request that the prime contractor initiate a conference with subcontractors. The prime contractor should ensure that representatives from involved contract administration offices are invited. (b) Government representatives– (1) Must recognize the lack of privity of contract between the Government and subcontractors; (2) Shall not take action that is inconsistent with or alters subcontracts; and (3) Shall ensure that. Read More.
Topics: Cognizant Federal Agency "CFA", Cost Accounting Standards "CAS", Defense Contract Audit Agency "DCAA", Department of Defense "DoD", National Defense Authorization Act "NDAA", privity of contract, subcontractors
Accounting System Assessment – Alliant 2 Contract
By: Eric Poppe, Manager; Kristen Kwiatkowski, Manager; and Jacob Barclay, Consultant There have long been rumors that the General Services Administration (“GSA”) will be releasing Alliant 2 (“A2”) and Alliant 2 Small Business (“A2SB”) Governmentwide Acquisition Contract (“GWAC”) Request for Proposals (“RFP”) in the near future. While there has been much speculation of a June 2016 release, nothing yet is certain. As companies begin to prepare for the final release of these two separate solicitations, companies should consider what regulatory impact the potential award could have on their compliance environment. The Draft Request for Proposals (“DRFP”) previously released on March. Read More.
Topics: Alliant 2, Alliant 2 Small Business "A2SB", Cognizant Federal Agency "CFA", Defense Contract Audit Agency "DCAA", Defense Contract Management Agency "DCMA", Draft Request for Proposals "DRFP", General Services Administration "GSA", Governmentwide Acquisition Contract "GWAC"
Audit Alert Issued for DCMA Implementation Guidance on Blended Compensation Caps
On February 19, 2016, the Defense Contract Audit Agency (“DCAA”) issued Memorandum for Regional Directors (“MRD”) 16-PSP-005(R), Audit Alert on DCMA Implementation Guidance on Blended Compensation Caps. The Alert provides auditors with official guidance when dealing with blended compensation caps with contractors, and in tandem with the Defense Contract Management Agency (“DCMA”). What does this mean? Let’s take a few steps back to October 2014, when Shay Assad, the Director of Defense Pricing Acquisition Technology, and Logistics OUSD (“AT&L”), issued a memo stating that use of a blended rate is deemed “practical and cost efficient.” This was in reaction to. Read More.
Topics: Blended Compensation Caps, Cost Accounting Standards "CAS", Defense Contract Audit Agency "DCAA", Defense Contract Management Agency "DCMA", Federal Acquisition Regulation "FAR", Memorandum for Regional Directors "MRD"
The Clock is Ticking: Getting an Edge on Your Annual ICS
It’s that time of year. Your personal tax returns are complete. Your company completed its taxes on time. The auditors wrapped up the financial statement audit. Is there time to breathe? Certainly not…It’s finally time to prepare your annual Incurred Cost Submission (ICS)! For companies with fiscal year ending December 31, 2015, the 2015 ICS will be due by June 30, 2016, six months after the close of your fiscal year. Throughout the years, we have seen a variety of different hiccups and struggles for companies as they shift out of “busy season.” Here are a few things to consider. Read More.
New Guidance–Limited Role for DCAA Audit of Non-DoD Contracts
The 2016 National Defense Authorization Act (NDAA, S.1356) (“the Act”) includes a number of sections related to Acquisition Policy or Acquisition Management. In particular, the Act discusses the subject of the Defense Contract Audit Agency (“DCAA”) contract audits and the requirements for improved auditing on the incurred cost backlog (“Indirect Cost Rate Proposals”; “ICPs”) are explicitly mentioned. Section 893 prohibits DCAA from performing any audits for non-defense agencies (e.g., National Aeronautics and Space Administration (“NASA”)), unless the Department of Defense (“DoD”) certifies that DCAA is current on the ICP backlog or less. This restriction could cause some disruption for contractors. Read More.