Government Contracts MonitorCost Accounting and AuditingWatch Out! DCAA Will Soon Be Asking for your Internal Audit ReportsJanuary 9, 2013 The 2013 National Defense Authorization Act (“2013 NDAA”), which was signed by the President on January 3, 2013, includes a provision allowing the Defense Contract Audit Agency (DCAA) to ask contractors for their internal audit reports and then keep track of the contractors’ responses, but stops short of actually requiring contractors to produce the reports. An earlier version of the bill… DCAA Audit Backlog - You Can\'t Always Get Your Contract Closed OutJanuary 2, 2013 As you probably know, the Defense Contract Audit Agency (DCAA) has an incredible backlog of incurred cost audits. While they’ve been tackling this backlog through a 2012 initiative that focuses on high dollar value incurred costs (or incurred costs that, for some other reason, are considered “high risk”), Congress doesn’t think the process is working – or at least not fast enough. Incurred… Employee “Morale” Costs Under the FAR – “Lunch Wagons” are OK but a $10,000 Holiday Party with a Jazz Ensemble is NotNovember 9, 2012 The Armed Services Board of Contract Appeals (ASBCA) recently ruled on an appeal of a decision by the Defense Contract Management Agency (“DCMA”) regarding allowable costs under the FAR. Although the case involves a relatively small amount of money, it is instructive regarding the types of indirect costs that are allowable and chargeable to the Government. In Thomas Associates, Inc., ASBCA… A “Spicy” Decision by the CBCA Clarifies the Role of a Contracting OfficerAugust 2, 2012 A recent food service industry decision from the Civilian Board of Contract Appeals provides some guidance regarding how a Contracting Officer should deal with potential mistakes in the bid process. In Red Gold, Inc. v. Dep’t of Agriculture, CBCA 2639 (July 6, 2012), the Board held that a unilateral mistake by the contractor was excusable and awarded $253,608. In connection with a… Government’s Internal Administrative Procedures Do Not Extend Time Limit for Bringing ClaimJuly 26, 2012 As previously reported here, the Court of Federal Claims and the Armed Services Board of Contract Appeals have held that the 6-year statute of limitations for bringing a claim applies equally to both the Government and its contractors. In Sikorsky Aircraft Corp. v. United States, Nos. 09-844C & 10-741C (Fed. Cl. July 18, 2012), the Court, once again, applied the Contract Disputes Act (CDA)… Contract Disputes Act Statute of Limitations Bars Government Claims in Two Recent DecisionsApril 26, 2012 In two recent decisions – The Boeing Company, ASBCA No. 57490 (Jan. 6, 2012) and Raytheon Co. v. United States, No. 09-306C (Fed. Cl. Apr. 2, 2012) –contractors successfully argued that the Government’s claims were barred by the 6-year statute of limitations under the Contracts Disputes Act (CDA). The CDA provides that “each claim by the Federal Government against a contractor relating to… DCAA Increases Focus on Costs Associated with Lobbying and EarmarksMarch 9, 2012 Contractors who have received legislative earmarks may soon face increased scrutiny of their cost accounting practices from DCAA auditors. Since 1984, FAR cost principles have declared that costs associated with lobbying efforts are generally unallowable. See FAR 31.205-22. In general, DCAA defines lobbying costs as “amounts incurred to influence the outcome of elections,… New DFARS Reporting Requirement for IR&D ProjectsMarch 2, 2012 On January 30, 2012, DoD issued a final rule amending the DFARS to require major contractors to report independent research and development (IR&D) projects for which reimbursement, as an allowable indirect cost, is sought from DoD. See DFARS 231.205-18(c)(iii)(C). Under this rule, which is effective immediately, major contractors must report IR&D projects to the Defense… DCAA ACCESS TO INTERNAL AUDIT REPORTS AND WORKPAPERSMarch 1, 2012 The Defense Contract Audit Agency (DCAA) oversees contractor compliance by performing routine and non-routine audits. In addition, however, defense contractors typically maintain their own internal auditors to monitor policies, procedures, and business systems related to their government contracts. Most internal audit reports cover a broad range of matters that, understandably, the General… Contracts executed and performed entirely outside the United States – CAS now applies!August 26, 2011 The Office of Federal Procurement Policy (OFPP), Cost Accounting Standards (CAS) Board, has issued a final rule eliminating the exemption regarding Cost Accounting Standards for contracts executed and performed entirely outside the United States, its territories, and possessions. 76 Fed. Reg. 49365-49368 (Aug. 10, 2011). The new rule takes effect October 11, 2011. The overseas exemption was… |
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