There are obviously many changes occurring in the Government contracting marketplace over the last couple of years.  You don't have to think back too far to remember the threat of canceled contracts due to Sequestration or the Government Shutdown.  The military draw down in Iraq and Afghanistan and the mandated reduction in defense spending have had an effect on all government contractors. 

For many years government contractors have struggled with how to maintain a DCAA compliant accounting system.  The original Contract Audit Manual was created in the Department of Defense in the 1950's.  The Defense Contract Audit Agency (DCAA) was created in the 1960's.  The original requirements for systems were obviously created prior to the use of computers in business.  Now, certainly, the CAM and the DCAA have adopted with changing times and continue to change.  That is not the point.  I think that a lot of the regulations were designed for manual type systems and they have found a way to survive in the regulations.  Even some of the most popular software programs for accounting for government contractors struggle with all the  requirements.  In addition, some of the programs are written on older platforms so the look and feel of the program is somewhat dated. 

I tend to be a visual person and I think a lot of people are like me.  That is why our world has changed so much to focus on tools like portable phones with video displays, touch screen devices and even access to things like television on your cell phone.  I comprehend topics better when I can see them as opposed to just reading about it. 

The Navy has just released its latest solicitation for the Seaport-e contract vehicle. This open solicitation is part of what the Navy calls its Rolling Admissions program.  The Navy has a Rolling Admission to expand the contractor base in their Indefinite Delivery / Indefinite Quantity (ID/IQ) prime contracts.  This is also an opportunity for existing Seaport-e prime contract holders to expand the scope of their contract or expand the geographical scope that their contract covers. 

Last week we talked about some of the opportunities in the President's proposed new budget for FY2014.  I would like to look at more of the specifics of how that might translate into something good for small business. The Office of Management and Budget issued some insight to the thinking behind the FY2014 budget.  The main emphasis is, of course, to help build-up and support a strong middle class in America.  These programs are seen to either support that or help Americans reach that level.  The main thrusts of the budget are:

As Sequestration goes into effect, everyone will have something to talk about.  And, everyone will want to blame someone.  Some will blame the Democrats.  Some will blame the Republicans.  Some will blame the President.  There will be plenty of blame to spread around.  I think every American will feel the pain before this is over.  It is just human nature to blame someone when we feel pain. I read an article this morning about the Program Manager for the Joint Strike Fighter blaming the government contractors that are building the F-35 for taking advantage of the government.  Some of his accusations imply a distrust of the value of what the government is receiving for the money they are expending on the program.  Certainly there is a lot of truth in what Lt. General Bogdan says.  But if you get the chance, look at the article from the link above and read some of the excellent comments to the article.  I find the one comment about the way the government purchases items like this fighter very interesting.  Yes, the government pays well for the development of the airplane on a cost plus basis, but this comment to the blog indicates that manufacturing contracts for the government are difficult to make work.  I saw another blog this week where the blogger was criticizing the DCAA for not doing enough audits (they are way behind and raw statistics show an average of 2 audits per year per auditor).  Then one of the comments on the blog was from a DCAA auditor that got a little defensive, stating that he had done 5 audits and saved the taxpayers over $20M in those 5 audits.  The auditor went on to state that all contractors were "padding" their proposals.