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!  


 

Obama takes aim at Government Contractors

Posted by Mike Anderson on Wed, Dec 23, 2009 @ 02:30 PM

Last year when the economy “tanked” many small businesses looked to the one customer that was still spending money, the Federal Government.   For the uninitiated, this can be a nightmare of rules and regulations.  For the experienced, it just got tougher too.  President Obama issued a Memo on March 4th of this year noting that there had been a drastic increase in government contracts from 2000 to 2008 that did not employ sufficient competition to award.  Further, he noted that cost reimbursable contracts created a “risk” for the taxpayer that was unwarranted.    As a result, the Office of Management and Budget (OMB) issued guidelines at the end of October to reduce by 10% the dollar amount of contracts that were issued with only one bid were cost re-imbursement contracts or were T&M type contracts.   While we can all agree that the number of non-competitively bid contracts should be reduced, I’m not sure we understand why a cost reimbursable or T&M type contract is not in the best interest of the taxpayer?  Normally these are the contracts that the DCAA will be sent out to audit and make sure that guidelines are being followed, not FFP contracts.  Also, with all of the turmoil at the DCAA in the last year, the audit standards are more strict than ever. 

So what does this mean for the small government contractor?  I guess it means that 1) it will be harder to win a contract because of increased amounts of competition being sought, 2) it will put more risk on the contractor because there will be increased pressure to use FFP type contracts , & 3) when the contractor does get a contract there will be increased scrutiny from the DCAA for performance.

Topics: government contractor, DCAA audit, government contract management