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!  


Government Contracting gone bad

Posted by Mike Anderson on Tue, Apr 19, 2011 @ 03:34 PM

There are many stories out there about contractors that feel they were either bullied or treated unfairly by the government.  Certainly, government contracting is not for everyone and a special set of rules apply.  We heard a story recently about a client of ours that had a very bad experience with the government.  It seems that in closing out a contract that the DCMA issued a directive for the client to refund $91,000 to the government.  Refunds and cost overruns are always difficult for contractors to deal with but in this case the contractor only received $30,321.77 of revenue on the contract in question!  The reasons are not yet clear but it does put a tremendous burden on the small business to prove their case.  In this example (see the blog titled "In the Middle...." dated April 7, 2011), it seems that common sense should prevent excessive legal fees from being spent.  So how can you avoid this type of scenario from happening to your company?    Certainly one issue is to make sure your accounting system is in complete compliance with the DCAA and government requirements.  The next most important lesson is to make sure that you actively "manage" your indirect rates during the course of the contract.  This is a technique that is very specialized but very necessary to avoid this type of situation. 

Topics: ACO, Administrative Contracting Officer, Contract Dispute, DCMA, Defense Contract Management Agency