DCAA Compliance Blog

Your Source for DCAA News and Information for Contractors

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.  

In our DCAA Blog, we discuss the latest government contracting news from the Federal Government, the DCAA, and DCMA, as well as promotions offered by ReliAscent, and helpful tools and resources for contractors.

We hope you will visit and take part in the discussions on our blog on a regular basis. If you ever have any questions or would like to discuss how our experts can help, do not hesitate to contact us at any time!  


DCAA guidance on FAR Circular 2005-37

Posted by Mike Anderson on Thu, Nov 19, 2009 @ 10:55 AM

In case you weren’t watching, there were some significant changes to the Federal Acquisition Regulations (FAR) recently.  The Secretary of Defense issued a Federal Acquisition Circular Number 2005-37 on October 14, 2009.  Of the 7 changes implemented in this document, item V (Limitations on Pass-Through Charges (Interim)) has the most severe impact.  This change restricts what they call “excessive pass thru charges”  by contractors from subcontractors.  Basically if the contractor has a subcontractor with more than 70 percent of the total cost of work to be performed on the contract, the contractor cannot receive indirect costs or profits on this subcontract.  This restriction is effective October 14, 2009 (it is now in effect)!   Many contractors may not be aware of the change.   So the amount of work put on the contractor just grows.  It is becoming more difficult for the average small business owner to know how to safely fulfill requirements of government contracting.  It is clear small business needs help in the area of government contracting now more than ever.

Topics: FAR, 2005-37, Government Contract, government consulting, DCAA audit