CPAs and Advisors with Your Growth in Mind

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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SBA Issues Proposed Rule to Allow Lower Tier Small Business Subcontractors to Qualify Toward Small Business Subcontracting Goals

On October 6th, 2015 the Small Business Administration (“SBA”) issued a proposed rule to allow “other than small” business prime contractors, with small business subcontracting plans, to receive credit for awarding subcontracts to small businesses at any tier level. Under the current regulations, credit toward small business subcontracting goals is awarded only at the first tier level. The proposed rule seeks to further the government’s overall commitment to providing Federal procurement opportunities to small business. Federal Acquisition Regulation (“FAR”) 52.219-9(l), which provides regulations governing small business subcontracting plans, states the “subcontract award data reported by prime Contractors and subcontractors shall. Read More.

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Rule Updated on Whistleblower-Related Legal Costs

In June 2013, Cherry Bekaert notified you of coming changes to whistleblower protection laws for government contractors. Subcontractors were being given protection under whistleblower laws, and the Federal Acquisition Regulation (FAR) was amended at that time to generally not allow legal fees or other expenses related to whistleblower protection claims. This past July, multiple government agencies, the Department of Defense (“DoD”), General Services Administration (“GSA”), and National Aeronautics and Space Administration (“NASA”), finalized a rule to update FAR cost principle 31.205-47, related to the allowability of legal costs. The change implements a section of the National Defense Authorization Act 2013. Read More.

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Another Delay for SAM?

System for Award Management (SAM) is a federal government database that will eventually combine the data from multiple databases or systems to provide a single portal for contractors, grantees, and federal agencies. In July 2011, eight systems were projected to be included in SAM by the end of 2014. Currently, only four systems, Central Contractor Registration (CCR), Online Representation and Certifications Application (ORCA), Excluded Parties List System (EPLS) and Federal Agency Registration (FedReg) have been combined. On July 31, 2014, the president issued an Executive Order (Order): Fair Pay and Safe Workplaces . It requires federal contractors submitting an offer for a contract of goods. Read More.

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