Understanding Direct Costs, Indirect Costs & Cost Pools

differences-between-direct-and-indirect-costs

Summary of  Keypoints Direct and indirect cost segregation is required by FAR and enforced by DCAA, ensuring that costs are consistently classified and properly charged to government contracts throughout the contract lifecycle. Direct costs are those clearly attributable to a specific contract, such as contract-specific labor or materials, while indirect costs support multiple contracts or…

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Key DCAA Terms to Understand for Contractors

glossary of key dcaa terminology

The Defense Contract Audit Agency (DCAA), part of the United States Department of Defense (DoD), performs  audits of DoD contractors to ensure the best value for money the agency spends on defense contracting. As part of its auditing services, DCAA will review a contractor’s accounting and business systems to ensure the contractor is able to…

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What Happens During a Pre-Award Survey With DCAA?

government contractor preparing for pre-award survey with DCAA

If you’re a contractor who has submitted a proposal to work with the Department of Defense (DoD), you will have an audit done by the Defense Contract Audit Agency (DCAA) before the contract is awarded. A Pre-Award Audit typically includes the audit of the pricing in the proposal the contractor submitted as well as a…

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How to Prepare for DCAA Pre-Award Survey

How to Prepare for the Pre-Award Survey

If you are new to government contracting, prior to being awarded a flexibly priced contract, your contracting officer will request that DCAA perform a Pre-Award Survey to ensure your accounting system is adequate to account for government contracts. As you’re bidding on contracts, you’ll frequently be asked to provide a copy of an audit by…

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How Work From Home Might Affect This Year’s Tax Returns

how work from home affect this years tax returns

Summary of Keypoints Work-from-home arrangements in 2020 created new tax complications because tax obligations are based on where employees physically perform their work, not where employers are headquartered, introducing uncertainty for both individuals and businesses. State tax nexus rules may trigger additional employer and employee tax obligations, as many states consider even one remote employee…

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