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!  


Provisional Rates - A potential DCAA focus area in 2012

Posted by Mike Anderson on Tue, Jan 24, 2012 @ 03:01 PM

Provisional Rates

Over the last year or so the DCAA has focused attention on larger government contractors.  Many smaller businesses may feel left out since they have not been visited by the DCAA.  More likely, they may feel that everything is "ok" since for most of us "no news is good news".  Our Account Managers here have been hearing bits of news from various sources that this might change in 2012.  First, the DCAA is apparently going to focus more on completing Incurred Cost Proposal audits in 2012, especially from smaller contractors.  The backlog of Incurred Cost audits was estimated to have quadrupled over the last 10 years but even DCAA Director Fitzgerald didn't know the exact number in a meeting with Senators Brown (R-MA) & McCaskill (D-MO) in  February last year.  Rest assured the number is huge.  We have recently seen clients that have received letters from the DCAA that demand the Provisional Billing Rates for Jan. 1, 2012 thru Dec. 31, 2012 be completed and turned in to the DCAA by February 1, 2012.  So we are seeing focus not only on the provisional rates (Ref Far 42.704(b)) but we expect to see a focus on cleaning up the backlog of Incurred Cost Proposals.  Both of these efforts will affect small business contractors.  The Provisional rates affect your ability to bill the government in the near future.  Once the DCAA audits the Incurred Cost Proposals the provisional rates become final rates.  The government is bound to payment based on the final indirect rates so these are very important numbers.  If your final indirect cost rates are lower than your provisional indirect cost rates, then the contractor could be liable for repayment to the government.  The important message for all government contractors is twofold: 1) it is important that your provisional rates are calculated correctly so that they come as close as possible to the final rates and 2) it is important that your Incurred Cost Reports are correctly done and accurate.  We envision spending a lot of time on those two areas this year.  It would be wise for all government contractors to do the same.

Read More

Topics: Indirect billing rates, Year end indirect rates, Provisional rates, DCAA, DCAA audit

It's September, do you know where your indirect rates are?

Posted by Mike Anderson on Tue, Aug 24, 2010 @ 05:05 PM

Many of you may remember the TV commercial many years back where the announcer said "Its 10:00pm.  Do you know where your children are?".  The idea was to focus parents attention on their children in the formative ages.  The same might be said right now to government contractors: "It's September, do you know where your indirect rates are?".  The parallels here are astounding.  The premise on the parenting message is that if you as a parent don't know what your children are doing at this hour of the day, you may have a nasty surprise when they get caught.  In the government contracting world there could be similar consequences.  For instance, if your rates are not following your approved rates you could be faced with giving the government some money back at the end of the year or the end of the contract.  If you did know where your rates were, how would that change anything you say?  Well, if your rates are running too low, there is still time left in the year to spend the indirect money that was originally budgeted in order to bring the rates back into line before the end of the year.  The longer you wait, just like postponing writing that term paper, the more difficult this will be to bring your rates back into line.  Now is a good time to look at your indirect rates, compare them to your approved billing rates and take action to prevent unpleasant surprises at the end of the year.
Read More

Topics: Indirect billing rates, DCAA accounting, government cost accounting