ReliAscent would like to remind all Small Businesses planning to submit a proposal for the NSF's SBIR/STTR 2019 Phase I solicitation, that the deadline to submit your applications is tomorrow, June 13th, at 5 PM (local time for each time zone).Read More
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ReliAscent® LLC is the only government contract accounting firm that specializes in all aspects of government contracting compliance. From our DCAA compliant accounting services, to monthly government contract accounting for all government agency awards, contract management & administration, and financial services & planning, our goal is to ensure the success of our clients, and all small business government contractors and grantees.
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Today ReliAscent conducted a webinar about the NSF accounting requirements, especially related to the SBIR Phase II award. ReliAscent is partnering with Dawnbreaker® on this effort. For those of you not familiar with Dawnbreaker®, they are a firm that NSF has contracted with to help NSF SBIR award winners to develop commercialization plans for the technology developed in the SBIR award. The NSF noticed that there were a number of companies selected for a Phase II award and then declined an award due to failure in the verification process. The NSF asked Dawnbreaker® to give some guidance on this subject to the companies they were working with. This is where we came in. Brian Sperry, a veteran of many years work with NSF SBIR grants, and I teamed up for the presentation. I thought mentioning some of the highlights would be worthwhile here in the blog.
The NSF looks at 3 basic things prior to award after a company's SBIR proposal has been selected. These 3 areas are:
- Adequacy of the Awardee's Accounting System (Go/NoGo)
- Financial Viability of the Awardee (Go/NoGo)
- Budgetary Review (Adjustment/Negotiation)
When a company is awarded a Fixed Price award, specifically a fixed price NSF grant or SBIR grant, from the government, usually all the financial risk is on the contractor. This means the government is less interested in how the company does their accounting. The contractor is usually not burdened with audits of their accounting system, they do not need to calculate indirect billing rates and the type of accounting system is not a concern to the government. The burden of completing the work assigned for the price agreed upon is enough risk for the company to bear. Recently, there have been some incidences of items that might be of concern to a company with a fixed price grant from the NSF.