CPAs and Advisors with Your Growth in Mind

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.

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ASBCA Holds that Leases are not Necessarily Subject to CAS 404

In Exelis, Inc., ASBCA No. 60131 (29 Aug. 2016), the Armed Services Board of Contract Appeals (“ASBCA”) held that a concern whether a building lease was a capital lease or an operating lease is not subject to Cost Accounting Standards (“CAS”) 404. In 2007, the Defense Contract Audit Agency (“DCAA”) released its audit of Exelis’ 2004 final indirect cost rates. DCAA questioned Exelis’ lease costs, finding that the building lease was a capital lease instead of an operating lease as claimed by Exelis and that Exelis could only include building depreciation in its indirect cost pool rather than the entire. Read More.

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Preparing a Compliant Proposal: An Art or a Science?

By: Kristen Kwiatkowski, Manager; and Eric Poppe, Manager Preparing a technical and cost proposal for any company can be a daunting task. Not only do you need to prove that you have the services or products the customer needs, but you need to prove you can provide them better than your competitors, at the best price, and still make your company a profit. Layer in the complexities of government contracting, and you have an intricate dance that many spend their whole careers trying to master. In addition to fighting your own challenges on preparing a compliant proposal, you may also. Read More.

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It’s About Time: GSA Finally Releases Alliant 2 Request for Proposals

On June 24, 2016, the General Services Administration (“GSA”) released its Request for Proposal (“RFP”) for the long-awaited Alliant 2 Small Business (“A2SB”) Governmentwide Acquisition Contract (“GWAC”). The government estimates that a maximum of 80 awards will be made for A2SB, which has a $15 billion ceiling over 10 years. A2SB will be an  contract that provides IT solutions through a broad range of services. For contractors deciding or preparing to bid on A2SB, it is imperative to gain sufficient information about the RFP and its scoring methodology. GSA officials are adamant that respondents read the entire 174 page RFP,. Read More.

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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.

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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.

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