Long-Term Challenges of the U.S. Defense Industrial Base
According to a recently published Pentagon report, America’s defense industry outperformed other industrial sectors in fiscal year 2017 but faces serious challenges in the future. The Fiscal Year 2017 Annual Industrial Capabilities Report to Congress, released in May 2018, found that long-term trends threaten the health of the industrial base, limit innovation, and reduce U.S. competitiveness in global markets. The greatest challenge appears to be demographics of the workforce. Specifically, defense companies are faced with a shortage of qualified workers to meet current demands as well as future demands created by retiring senior-level engineers and skilled technicians. The risks vary. Read More.
DCAA 2018 Hot Button Highlights
By: Curt Smith , Manager Each year Cherry Bekaert addresses topics that effect the Defense Contract Audit Agency (“DCAA”) in our DCAA “Hot Buttons” webinar. A summary of the January 17, 2018, webinar is presented here. The webinar is replay is also available on our YouTube channel. The webinar is available for replay on our YouTube channel. Section 803 of the 2018 National Defense Authorization Act (“NDAA”) Section 803 of the 2018 NDAA contains several provisions reforming defense contract auditing. Perhaps the provision with the greatest impact on DCAA directs the Department of Defense (“DoD”) to begin using private auditors to perform incurred cost audits to reduce the current backlog. The provision intends to focus DCAA resources on forward-pricing audits, which are considered. Read More.
Topics: Cost Accounting Standards "CAS", DCAA, DCAA Audits, DCAA Memorandums for Regional Directors, Defense Contract Audit Agency "DCAA", Department of Defense "DoD", Federal Acquisition Regulation "FAR", Generally Accepted Government Auditing Standards "GAGAS", Incurred Costs, National Defense Authorization Act "NDAA"
DoD Inspector General’s Office Releases Semi-Annual Report to Congress on Accomplishments
Twice a year, per the requirements of the Inspector General Act of 1978 (as amended), the Department of Defense (“DoD”) Office of the Inspector General (“OIG”) issues a report that summarizes its efforts and oversight conducted for the preceding six-month period. The report serves to demonstrate the importance of the OIG’s work to detect and deter waste, fraud and abuse, improve the efficiency and effectiveness of DoD programs, and ensure ethical conduct throughout the DoD. The most recent report, which covers the period of April 1, 2017, to September 30, 2017, documented 55 issued reports, including several significant audits and. Read More.
2018 NDAA: Changes to TINA Threshold and Incurred Cost Audits
In November, the conference committee for the National Defense Authorization Act (“NDAA”) for fiscal year 2018 completed one of the final steps in the NDAA process filing its report reconciling the differences between the House version and the Senate version of the legislation. Shortly after the reports were reconciled, the conference report was officially enacted into law as the fiscal year 2018 NDAA. This bill authorizes fiscal year 2018 appropriations and sets forth policies for Department of Defense (“DOD”) programs and activities. One of the major changes in the fiscal year 2018 NDAA, Section 811, is the increase in the. Read More.
No More DCAA Performing ICS Audits?
No more Defense Contract Audit Agency (“DCAA”) auditors auditing your company’s incurred cost submission? It could happen! As a result of the 2018 National Defense Authorization Act (“NDAA”) signed by President Trump on December 12, 2017, it is a real possibility for an independent accounting firm to audit your incurred cost submission instead of auditors from the DCAA. Under the NDAA, which outlines defense spending priorities for the new fiscal year and established federal funding levels, there is a provision for the Department of Defense (“DoD”) to start using private auditors to perform some incurred cost audits. The idea is. Read More.
Topics: 2018 National Defense Authorization Act, audits, Defense Contract Audit Agency "DCAA", Department of Defense "DoD", Generally Accepted Government Auditing Standards "GAGAS", Incurred Cost Submission "ICS"
How Many Contractors Does It Take to Run the Government?
By: John Ford , Senior Consultant, Government Contractor Services Group For many years, there has been a debate as to how many contractors are performing work for the government. This issue has two components: (1) the number of entities holding contracts; and (2) the number of individuals who are actually performing those contracts. While the former is fairly easy to determine, the latter is more problematic. This article will discuss two of the tools available to the government to make this determination. These tools also help the government to know how much these employees are costing the government. The first tool, required. Read More.
Topics: Contractor Manpower Reporting Application "eCMRA", Contractor Performance Assessment Reports System “CPARS”, Defense Federal Acquisition Regulation Supplement "DFARS", Department of Defense "DoD", Federal Acquisition Regulation "FAR", Government Contractors, Service Contract Act "SCA", System for Award Management "SAM"