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!  


 

Budget Cuts, Fraud & Inefficiency Means Stricter Compliance

Posted by Mike Anderson on Wed, Oct 12, 2011 @ 08:30 AM

There may be a perfect storm brewing in the government contracting world that will make it harder to do business with the federal government.  It started in July of 2008 when the Government Accountability Office (GAO) issued a report that 3 of 3 DCAA audits showed inadequacies in the DCAA's performance of the audits.  This was followed up with another GAO investigation in September of 2009 that indicated a widespread problem within the DCAA organization.  As a result the DCAA went through 3 directors in a little over a year.  Major reform was announced and the DCAA is performing audits strictly to the book now, with only a "pass/fail" grade issued.  But even with this increasing dose of compliance issues for contractors, there continues to be problems.  Does it seem to you that we are hearing more about federal contractor fraud cases lately?  And then how about the case where government contractor executives are paid excessive salaries?  Many contracts suffer from cost overruns and late deliveries.  Combine all of this with the current economic crisis and the emphasis on cutting the federal budget and we have a perfect storm focused on government contractors.  What does this mean?  I think it will mean more scrutiny on government contractors, more emphasis for compliance and certainly more emphasis on performance.  There will be more difficulty for firms to survive in the government marketplace that do not meet all he compliance issues and/or that don't perform on-time and either on budget or under budget.  The contractors that can do this will be rewarded.  The contractors that cannot perform to this new standard will be rapidly pared from the market.  Companies that have an experienced staff to respond to all the government's compliance issues will prosper.  Companies that do not have significant experience in this area need to shore up that weakness.  Outsourcing this function can strengthen a company and assure survival.  Tech BizSolutions staff has the experience to offer to these companies in need of this service.  Call us today if you need to address a weakness or potential weakness.  We can help.
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Topics: FAR, DCAA compliance, Government Contractors, DCAA, DCAA audit


Navigating FAR and "late payments"

Posted by Mike Anderson on Mon, Jun 07, 2010 @ 07:00 AM

It always amazes me to hear about small business entrepreneurs who are successful in receiving SBIR grants or government contract(s)  but suddenly have difficulty in collecting money or continually have late payments from the government.

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Topics: FAR, Government Contract, SBIR, DCAA accounting


ARRA Money distribution and systems reviews

Posted by Mike Anderson on Wed, May 12, 2010 @ 04:22 AM

Has anybody in small business wondered where the American Recovery and Reinvestment Act (ARRA) money was and if it would ever trickle down to small business?  It has taken a while to get the money flowing on some of these programs (other than construction projects).  We are starting to see ARRA funds used for funding of some STTR and SBIR topics.  There are some additional stipulations attached to funds coming from the ARRA, however. The contractor must have a funds control system that tracks and reports ARRA funds separate from non-ARRA funds.  The contractor must also keep track of jobs created by the ARRA funds or jobs supported by the funds.  It is required that the costs claimed are allowable, allocable and properly supported.  The contractor is also required to flow down these requirements to subcontractors.  These requirements are in addition to the usual DCAA and FAR requirements for government contracting.  So the question is; "will the government really be able to monitor these additional requirements"?  Well, we had a client last week that received a notice from their contracting office notifying them that a team was coming to their facility to do a "review" of these requirements associated with the ARRA funds.  The review is requesting to see "backup documentation" in support of these requirements.  Sounds like a system audit.  So if you are receiving ARRA funds (or proposing to receive these funds) be prepared for a "review" of your backup documentation.  This is beginning to happen.
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Topics: FAR, ARRA, SBIR, STTR, DCAA


ICE Reports for Government Contractors

Posted by Mike Anderson on Wed, Mar 17, 2010 @ 01:33 PM

Is there anyone out there that relishes preparing their Incurred Cost Submissions?  Does this seem like your personal income taxes on steriods?  Also, does everyone know when their ICE reports are due?  We all recognize the date April 15th as tax day but ICE is not quite as clearcut.  For government contractors your ICE report is due 6 months following the end of the corporate fiscal year.   So multiple dates are possible, depending upon how you structure your company.  Many companies have a December 31 end to the fiscal year which means the ICE reports are due by June 30th.  It is not too early to start thinking of this right now if this is the case for your company.  There are typically 18 sections (or Schedules) associated with the ICE report template with another 6 "optional" schedules. (Wow! really?)  There is a government template/model for the ICE report.  You can find this at   http://www.dcaa.mil/ice.htm.  For the un-initiated, this can be a test of patience and sometimes very confusing.  It is no wonder that many people either procrastinate this or forget about it altogether.  This is not a good solution as the contracting officer then is in the drivers seat to determine your indirect billing rates and that could end up costing you money.  My recommendation is to do what you might do with your personal taxes, hire an expert.  The staff at Tech BizSolutions is just such experts.  Give me a call today at 303-867-8125 and we can discuss it in more detail.
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Topics: ICE, FAR, Incurred Cost Submission, DCAA accounting


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.

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