CPAs and Advisors with Your Growth in Mind

What’s in a Name?

As many Federal contractors know, speaking the language of government contracting can be a daunting task. Effective May 29, 2014, most of the familiar names and terminologies associated with some of the key Acts and provisions affecting government contractors were modified in the Federal Acquisition Regulation (FAR). The name changes were required to conform references throughout the FAR to the new Positive Law Codification of Title 41, United States Code. Positive law codification by the Office of the Law Revision Counsel is the process of preparing and enacting a codification bill to restate existing law as a positive law title. Read More.

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New Labor Compliance Requirements Coming Soon

In July 2014, President Obama signed Executive Order 13673, Fair Pay and Safe Workplaces, which is scheduled to go into effect sometime this spring. The goal of the order is to ensure that government contractors who do business with the Federal government comply with required labor laws and promote safe, healthy, fair and effective workplaces. Prior to the award of a contract for goods and services, including construction where the estimated value will exceed $500,000, an offeror will be required to certify that it is in compliance with a variety of labor laws. Such laws include the Fair Labor Standards. Read More.

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Proposed FAR Amendment Would Change Confidentiality Agreements

The Department of Defense, General Services Administration, and National Aeronautics & Space Administration have proposed a rule to amend the Federal Acquisition Regulation (FAR) to implement a section of the Consolidated and Further Continuing Appropriations Act of 2015, which would prohibit the use of funds, appropriated or otherwise made available, for a contract with an entity that requires employees or subcontractors to sign an internal confidentiality agreement that restricts such employees or subcontractors from lawfully reporting waste, fraud, or abuse to a designated government representative authorized to receive such information. The proposed rule would add a new FAR section at. Read More.

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Overtime on Government Contracts

By: John Ford , Senior Consultant, Government Contractor Services Group The use of overtime to perform government contracts can be a contentious topic, particularly in regard to uncompensated overtime. This article will address the following issues in regard to overtime on government contracts: The basic statutory requirements concerning overtime including what is an overtime premium; Overtime on cost reimbursement contracts; Overtime on time and materials (T&M) contracts; Overtime on contracts subject to the Service Contract Act (SCA); and Uncompensated overtime. The primary statute addressing overtime is the Fair Labor Standards Act (FLSA; “the Act”). The FLSA is administered by the Department of. Read More.

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DCAA and Executive Compensation after Taylor/Metron

By: John Ford , Senior Consultant, Government Contractor Services Group Within a period of approximately six months at the beginning of 2012, the Armed Services Board of Contract Appeals (“ASBCA”; “the Board”) issued two significant decisions concerning the process for determining reasonable compensation under Federal Acquisition Regulation (FAR) 31.205-6(b)(2). These decisions were J.F. Taylor, Inc., ASBCA Nos. 56105 and 56322 (Jan. 18, 2012) and Metron, Inc., ASBCA Nos. 56624, 56751 and 56752 (June 4, 2012). In both cases, the Defense Contract Audit Agency (“DCAA”) had questioned substantial amounts of compensation as being unreasonable. This conclusion was reached by following the standard procedure. Read More.

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Accounting for Overtime

Recently, our Firm presented a webinar on overtime . Because of time limitations, we were not able to address the proper accounting treatment of overtime costs. This blog will fill this gap. For purposes of this blog, overtime costs are those additional costs a contractor incurs to compensate an employee for working more than 40 hours in a workweek. The hours may be compensated at the employee’s normal hourly rate or at a premium rate of pay. We are not concerned with uncompensated overtime here. There seems to be some confusion and disagreement over the proper accounting treatment for overtime costs. For instance,. Read More.

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