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Federal Government Flow Down Requirements on Federal Contracts

Posted by Mike Anderson on Mon, Jul 28, 2014 @ 06:01 AM

Many times a small business may be working on a government contract and they may not realize they are working on a government contract since they are not contracting directly with the government.  This situation is called a second tier government contract, or a case where the company is a subcontractor (or sometimes a supplier) to a Prime contractor.  In this situation, the company is not completely relieved of all the government’s rules and regulations.  Almost all government contracts have what is called “Flow-Down” requirements.  This is a case where the Federal Government gives mandatory flow down clauses in their contract to the prime and then requires that the Prime contractor pass this requirement along to all of their subcontractors (& sometimes to suppliers) and many times these must be passed on down the chain.

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Topics: FAR, Federal Contract, federal acquisition regulations

Government Contractors: DCAA, FAR and Other Compliance Issues

Posted by Mike Anderson on Wed, Jun 18, 2014 @ 10:29 AM

Running a small business is a challenge.  I saw a statistic the other day that less than half of small businesses survive to see their 5th birthday.  If it isn't enough facing challenges of cash flow, business development and infrastructure to confront the new business owner there can be other obstacles like compliance with government regulations.  Government regulations take many forms and meanings to the small business, depending on your business line and even your customer list.  A "standard" small business must concern itself with loans (bank, SBA, Angel funding, etc), taxes, municipal regulations, rent, lines of credit, equal employment regulations, minimum wage guidelines, vacation time, mandatory sick leave, cash flow, health care for employees, insurance and a myriad of other complex situations.  For instance, if you are a government contractor, you open yourself up to a lot more regulations.  When your customer is the US Government, there are regulations to go around that make things more complex.  Things like the Federal Acquisition Regulations (FAR), the Code of Federal Regulations (CFR), the Office of Management and Budget (OMB) directives, Agency directives, Defense Contract Audit Agency (DCAA) regulations and Defense Contract Management Agency (DCMA) to name a few can add layers of complexity on the small business. 

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Topics: FAR, DCAA

Rooting Out Unbilled Cost and Fee on Cost-plus Type Contracts

Posted by HubSpot User Default on Fri, Jun 13, 2014 @ 07:00 AM

What a great feeling it is to find a $20 bill in your jacket pocket. It’s a happy surprise many of our clients have come to experience, only the cash they find lingering in the corner of their contracts could be amount to tens of thousands of dollars. 

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Topics: FAR, government contracting, Withholding Payments, Cost-plus type contracts

DPAP seeking input on the FAR

Posted by Mike Anderson on Tue, Mar 04, 2014 @ 04:48 PM

The Directorate of Defense Procurement and Acquisition Policy (DPAP) has requested input on the statutes and regulations that govern the purchasing process.  Originally the DPAP requested all comments 30 days from the announcement on February 12th.  Many industry organizations, including the National Defense Industry Association (NDIA), pushed back and the DPAP office has granted another month to solicit opinions.  The new deadline for comments to the DPAP office is April 23rd.  The DPAP office is looking primarily for:

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Topics: FAR, DoD, DFARS

Accelerated Payments to Small Business Contractors

Posted by Mike Anderson on Fri, Feb 21, 2014 @ 11:49 AM

Late last year the Federal Government changed the Federal Acquisition Regulations (FAR) to make mandatory accelerated payments to small business, especially from certain agencies.  This began with policy directives by the Office of Management and Budget (OMB) Memoranda M-12-16, dated July 11, 2012, and M-13-15, dated July 11, 2013.  These policies were incorporated into the FAR on November 25th, 2013.  The new rule requires prime contractors to make accelerated payments to subcontractors and is found in the following FAR clauses:

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Topics: FAR, NASA, DoD, Accelerated Payments, Small Business Contractors

So you want to be a government contractor?

Posted by Mike Anderson on Tue, Feb 18, 2014 @ 04:06 PM

Many small businesses are looking to the Federal Government for either a solid first market or a market expansion for their business.  I think the Federal Government is a good customer to have, as long as you understand the pros and cons of doing business with this customer (in other words, the risks). 

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Topics: FAR, government contractor, federal acquisition regulations

Invoice Compliance for the Federal Contractor

Posted by Mike Anderson on Fri, Oct 18, 2013 @ 09:22 AM

In the past we have talked about DCAA compliance on Federal Contractors and focused mainly on the accounting system.  Many times some of the auxiliary systems get either "swept under the rug" or assumed that they are not a big issue.  These auxiliary systems include timekeeping, invoicing, subcontracting among others.  Obviously these systems utilize the accounting system and data but they also have regulations and must be done properly in order to maintain compliance.  Today I would like to focus just on the Invoicing part.

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Topics: FAR, DCAA

Where did the FAR come from?

Posted by Mike Anderson on Tue, Aug 20, 2013 @ 04:18 PM

Most contracts with the Federal Government are governed by the regulations set forth in the Federal Acquisition Regulations (FAR).  While most government contractors have heard of the FAR, and may have some familiarity with it, many do not know where these regulations came from and why they are important.  The FAR was created following a statue from the Office of Federal Procurement Policy within the Office of Management and Budget in 1979.  The purpose of this statute was to create and implement a uniform procurement system.  The FAR became effective in 1984 (a mere 5 years later), again proving that most things take time, especially related to the government.  The actual FAR regulation is contained in Title 48 of the Code of Federal Regulations, Parts 1 through 53.  This regulation is used by all Federal Executive agencies in their acquisition of supplies and services using appropriated funds.

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Topics: FAR, government contracting, CFR, federal acquisition regulations