DCAA attacking compensation rates. DCAA is using their own generalized survey and mis-labeling personnel into wrong categories. In addition their survey does not take into account technical expertise or clearances very well. Contractors should do their homework find a survey that fits their business and employee skill sets and bench mark their compensation. These surv
An adequate or approved accounting system is not required for all government contractors. Although it is a good idea to maintain an accounting system that properly charges costs to contracts by cost element, an adequate government contract accounting system is only required for contractors that perform cost type contracts (see FAR Subpart 16 on cost type contracts).
Unallowable costs are defined by FAR 31.2. Costs can also be deemed unallowable by contracting officer decision. This regulation, FAR 31.2, defines costs as unallowable in two broad categories. One is expressly unallowable costs. This one is manageable it includes those costs that are unallowable 100% under all circumstances. This is a relatively short list. The
I just got off the phone with DCAA and he has approved our time/accounting system for cost-type contracts. Ed ....., I want to thank you for your hard work and assistance on this. This was a major strategic initiative for our company and we couldn't have done it without your help.
A common question I am asked recently involves deferred compensation under government contracts. Often small businesses and especially small R&D business find the need to defer the payment of compensation to owners and employees. The answer to the question is yes you can charge or accrue deferred compensation under government contracts. However, as one might expect
A number of my clients have been advised that DCAA is waiving the incurred cost audit for cost reimbursable contracts. This appears to be limited to small business contractors. One contractor had 5 years waived. It appears that DCAA (in some of its offices in certain parts of the country) is making a risk assessment of small contractors. If they conclude the contra