2019 NDAA Further Restricts Usage of LPTA Procurements
Almost all companies doing business with the government have been impacted at one time or another by the usage of the often-maligned “lowest price technically acceptable” (“LPTA”) procurement process. LPTA procurements were implemented during a period of constrained federal budgets and were designed to allow procurement officials to award on low price among those bidders who were all deemed technically acceptable. Many contractors have complained, and often filed protests, about the improper usage of LPTA in programs where technical innovation is important and where contractors have sacrificed program quality by hiring the lowest priced talent available. Congress ordered changes in. Read More.
DCAA Revises Guidance on Incurred Subcontract Cost Audits
By: Curt Smith , Manager In Memorandum for Regional Directors (“MRD”) 19-PIC-001(R), dated January 11, 2019, the Defense Contract Audit Agency (“DCAA”) published audit guidance revising its policies and procedures for audits of incurred subcontract costs. In summary, prime contractor auditors will no longer request subcontract assist audits for the life of the subcontract. Rather, such auditors will evaluate risk every year and request subcontract assist audits as needed. DCAA is revising Section 6-802.5 of the Contract Audit Manual (“CAM”) and the 10100 Post Year-End Incurred Cost Audit Program to reflect the new guidance. As an initial matter, contractors and subcontractors need. Read More.
Senate Working to Increase Federal Grants and Contracts for HBCUs
A new bill receiving unanimous Senate approval aims to help historically black colleges and universities (“HBCUs”) secure more federal grants and contracts. The HBCU Propelling Agency Relationships Toward a New Era of Results for Students (HBCU PARTNERS Act) requires applicable agencies to present to Congress their annual plans for supporting the capacity of HBCUs to take part in federal grants, contracts or cooperative agreements. Another Senate-backed effort seeking to give HBCU funding is the reauthorization of the HBCU Historic Preservation Program. This bill would permit grant funding to repair deteriorating historic buildings at HBCUs and bring buildings up to code. Read More.
Cherry Bekaert’s 2019 Local Government Benchmarking Survey Now Available
It’s that time of year again: Cherry Bekaert’s Annual Local Government Survey is now open! The latest edition of our survey incorporates feedback received from the 2018 survey, and it features updated categories and questions to reflect the current and changing regulatory environment. Whether you have taken precautionary measures to safeguard against a cyber-attack or are implementing new guidance from the Governmental Accounting Standards Board, we want to know about the issues affecting your local government. Give us approximately 15 minutes of your time and complete the 8th Annual Local Government Benchmarking Survey . The Firm will also select at random five (5) survey respondents to win a. Read More.
FASB Proposes Amendments on Acquired Liabilities in Customer Contracts
A new Financial Accounting Standards Board (“FASB”) proposal aims to clarify U.S. GAAP’s business combinations guidance concerning specific issues following implementation of Accounting Standards Update (“ASU”) No. 2014-09, Revenue From Contracts With Customers. Issued as Proposed ASU No. 2019-300, Business Combinations (Topic 805): Revenue from Contracts with Customers—Recognizing an Assumed Liability, a consensus of the FASB Emerging Issues Task Force, the proposal offers clarifications regarding when an entity acquiring another entity must recognize a contract liability in a business combination. The amendments would require the acquiring entity to recognize a liability from a customer contract in a business combination if the liability. Read More.
FASB Supports Improvements to Convertible Instrument Disclosures
At last week’s meeting, the Financial Accounting Standards Board (“FASB”) announced support for making several improvements to convertible instrument disclosures. Improvements include changing the format in which convertible instruments information is disclosed to investors. The FASB decided not to require such disclosures to be presented in a tabular format, instead opting to give issuers the freedom to select between a tabular or narrative disclosure. Last week’s decision is part of the board’s ongoing efforts to streamline its liabilities and equities accounting guidance. Many critics believe the guidance under FASB Accounting Standards Codification 480, Distinguishing Liabilities From Equity, features too many internal. Read More.