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!  


 

Department of Defense - Continuing Resolution?

Posted by Mike Anderson on Mon, Feb 28, 2011 @ 09:51 AM

What is wrong with the way we are currently operating our government?  The government operates on a budget year from Oct. 1 to Sept. 30.  Theoretically the budget for the fiscal year should be established and approved prior to the start of the year.  Right now, the budget is not approved!  What?  That's right, the budget is operating on what is called a "continuing resolution" authorized by congress.  This means uncertainty, it means inefficiency and it means slow actions by the acquisition arm of the government (since they are not sure of funding, whether it will be approved, reduced, increased, eliminated, etc).  Undersecretary of Defense Aston Carter describes the problems well.  This short video allows some of his views of the problem. 

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Topics: SBIR Re-authorization, Ashton Carter, Government Contract, government contracting, DoD, Defense Budget


Department of Defense Budget Cuts

Posted by Mike Anderson on Wed, Feb 23, 2011 @ 05:07 PM

Defense Contractors: Now is the time to tell the DOD how changes in policy can save you money! In 2010, the Undersecretary of Defense for Acquisition, Ashton Carter, launched the DOD’s Better Buying Power Initiative. The purpose of the program was to get feedback from contracting industry officials on what guidelines instituted by the DOD were causing overhead and other costs to increase for defense contractors, while realizing little or no actual gain or increase of value to overall work. The DOD is fully aware that many current regulations do just this, either needlessly hurting contractors (by lowering efficiency & productivity) or adding un-needed expense to what the government buys. In an effort to cut over 100 billion dollars from the DoD budget in the next 5 years (starting FY 2012), this initiative is a good start to reducing waste and increasing efficiency not only in industry, but within the management of the DOD itself. Given the economic reality of today’s shrinking budgets and rising competition among contractors, it is crucial to take this opportunity to give the government a piece of your mind about what rules and regulations drive up your costs. Under the DOD’s Initiative, contractors still have until March 31st to submit ideas and concerns to the DOD. Click the following link to submit your ideas to the DOD:

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Topics: DoD, Defense Budget, Secretary Gates


Secretary Gates DoD cuts and what they mean to Government Contractors

Posted by Mike Anderson on Mon, Nov 08, 2010 @ 02:02 PM

As most of us are aware of now, Defense Secretary Gates make sweeping proposals to cut overhead spending in the Defense Department over the next 5 years (reference our blog from Sept. 10, 2010).  The goal is to find $100 billion over the next 5 years by improving efficiencies and cutting unnecessary overhead.  So what does this mean to the average government contractor?   I listened to Rich Wilkinson, government contracts Vice President at Deltek, Inc, last week as he accessed this question.  Secretary Gates' proposal includes trimming 10% of the funding for service support contractors each year for the next three years.  Rich's point is that this could mean serious re-adjustment for small to medium sized businesses that are supplying what is known as Professional, Administrative & Management Support Services (or PAMS).   It could result in the elimination of close to $4.5 B in PAMS spending.  Obviously other areas will be cut such as the closing of the JFCOM in Virginia.  If you are a small business supporting this area of the Department of Defense you need evaluate your business model immediately in order to survive over the next 3 years.  Now, more than ever, is the time for strategic planning for the future.  Rich has some recommendations in his paper and we can help you here at Tech Biz evaluate your business model as well.  I think everybody that has enjoyed supplying the Department of Defense with products and/or services over the last 10 years needs to be proactive right now in order to survive in the future.

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Topics: Government Contractors, DoD, PAMS, Secretary Gates


Changing Winds for DoD Federal Government Contractors

Posted by Mike Anderson on Fri, Sep 10, 2010 @ 09:04 AM

One of the most important skills for a small business owner is to be able to anticipate future changes in the market that will affect their business.  I think we face such a critical time right now in the world of government contracting.  Those businesses that support the Department of Defense in one way or the other have seen an increasing budget over the last 10 years or so.  We are starting to see signs that that may be coming to an end.  Oh the spending won't stop, please don't misunderstand.  What I think will stop is the ravanous increases and, to some degree, the "I have to have that for our military at any cost" mentality.  There was obviously some excess and some "fat" buildup in the budget over this time period.  Examples that this is changing are all around us.  The F-22 program was stopped.  Secretary Gates has announced recently that he will "save" $100 Billion over the next 5 years from the defense budget.  There is allegedly a "blacklist" being created as a result of the 2012 National Defense Authorization Act that could further cause difficulties for contractors.  President Obama is more than hinting that "outsourcing" of government functions should be brought back in-house.  Lockheed Martin announced a reduction of about 600 executives from their upper management ranks last week.  I think the Lockheed action is significant.  Lockheed is the nation's largest contractor (especially in the Defense market) and they are obviously taking steps to trim their overhead, batton down the hatches so to speak.  Everyone serving the defense market should take note and make preparations for the coming storm.  If you prepare properly now, the storm may not affect you as much.  If you are confused about what this means, give me a call and I'll be happy to discuss it with you.
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Topics: government contracting, Government Contractors, DoD


Counterfeit Parts In DoD Governement contracting

Posted by Mike Anderson on Fri, Aug 13, 2010 @ 04:30 PM

When you see the term "counterfeit parts" what do you immediately think?  I know to me the word "counterfeit" will always bring an immediate association to "counterfeit money" to me and obviously major felony crime implications.  To the government, "counterfeit parts" mean parts whose identity or pedigree is knowingly misrepresented.  This also can have felony implications.  But, according to the GAO report, the government does not have a consistent means to identify all instances of counterfeit parts.  The General Accounting Office (GAO) did a report earlier this year regarding 3 major objectives: 1) The DoD's knowledge of counterfeit parts in the supply chain, 2) The DoD's process to detect and prevent counterfeit parts and 3) commercial initiative to mitigate the risk of counterfeit parts. Part of the difficulty found by the GAO was that there is no consistent definition of counterfeit and no consistent means to identify this type of part.  There also could be inadvertant mistakes like whether or not stainless steel washers are covered under the Berry Ammendment or not covered per the DNAD issued December 8, 2006.  The point is that there are parts in the system that are counterfeit.  We don't know how many but we do know that they can affect not only the integrity of products used (integrity of military parts due to this issue is not acceptable) but possibly the delivery schedule.  The GAO report recommends specific guidance  and dissemination to defense contractors.  This could mean more contract requirements but this is a "good" contract requirement.  We don't need parts that are supplied with misrepresented identity or pedigree.  Maybe this will also keep more jobs, albeit in a small way, in this country.  That is a good thing.
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Topics: Counterfeit parts, government contracting, DoD