CPAs and Advisors with Your Growth in Mind

Government Contractors

Revised Treatment of Incomplete or Inadequate Prime Contractor Cost

The Defense Contract Audit Agency (“DCAA”) issued revised guidance on the treatment of incomplete or inadequate prime or higher-tier (hereinafter referred to as “prime”) contractor cost or price analyses during a forward pricing proposal audit. This new guidance, effective immediately, cancels the previous guidance established in 2009 and in 2017. Federal Acquisition Regulation (“FAR”) 15.404-3(b) requires the prime or higher-tier contractor to conduct cost or pricing analyses to establish reasonableness of the proposed subcontractor costs. Under the previous guidance, if the prime contractor did not complete and submit the required subcontractor cost or price analyses with its own proposal, DCAA classified. Read More.

Topics: , ,

GSA Consolidating Multiple Award Schedules into One Schedule

On November 27, 2018, the General Services Administration (“GSA”) announced that it will simplify its multiple award schedule (“MAS”) offerings by consolidating the 24 schedules now in use to a single schedule. GSA’s goals in doing so are to improve customer service, make it easier for small businesses to access the schedules program, and reduce duplication for vendors. The transition into a single schedule will take place over the next two fiscal years and will consist of two phases. The first phase will take place in fiscal 2019, and it will focus on developing the consolidated schedule and shutting down. Read More.

Topics: ,

Congress Extends Size Computation Period for Revenue Based Size Standards to Five Years

For government contracting purposes, there are two tests for determining whether a concern is a small business, a revenue test and an employee test.  For the revenue test, SBA rules (13 CFR §121.104) have required that a concern’s size status be determined by the average revenue of the concern and all its affiliates for the last three fiscal years of the concern.  This revenue test was based on a section of the Small Business Act, 15 U.S.C. §632, which provides in part that no Federal department or agency may prescribe a size standard for categorizing a business concern as a. Read More.

Topics: , , ,

Important New Acquisition Provisions in the 2019 NDAA

By: Eric Poppe , Senior Manager The John S. McCain 2019 National Defense Authorization Act (“NDAA”) was signed into law on August 13, 2018. It includes several broad provisions on acquisitions and compliance for both the Department of Defense and the overall Federal government. Below are some key provisions that impact contractors. Under Section 820, the Secretary of Defense is now required to submit a new report to congressional defense committees. This report will provide definitions of service contracts, as well as outline the policies, roles and procedures for individuals involved in the acquisition of services. Section 822 requires the Secretary of. Read More.

Topics: , ,

Important New Cyber Provisions in the 2019 NDAA

By: Curt Smith , Manager and Neal Beggan , Principal The National Defense Authorization Act for Fiscal Year 2019 (“NDAA” or “the Act”) was signed into law on August 13, 2018. The 2019 NDAA includes several broad provisions on cybersecurity that will interest government contractors. Generally, the Act in Section 1636 establishes a more aggressive policy on cyberspace, cybersecurity, cyber warfare, and cyber deterrence stating that the U.S. should “employ all instruments of national power, including the use of offensive cyber capabilities, to deter if possible, and respond to when necessary, all cyber attacks or other malicious cyber activities of foreign powers that target. Read More.

Topics: , ,

Section 199A: Detailed New Proposed Regulations and Their Impacts on Government Contractors

By: John Carpenter , Principal and Rick Schneider , Partner The Treasury Department and the Internal Revenue Service recently issued proposed regulations on the new Section 199A pass-through deduction created by the Tax Cuts and Jobs Act, available for tax years beginning after December 31, 2017, and before January 1, 2026. Section 199A is a wholly new regime established to generate a non-cash tax deduction to alleviate the disparity between the 37% individual tax rate and the new 21% corporate tax rate. Section 199A permits a deduction of up to 20% of qualified business income (“QBI”) from a domestic pass-through business, plus 20% of. Read More.

Topics: ,