Government Contractors
Incurred Cost Submissions: A Strategic Tool for Government Contracting Success
Summary of Keypoints Incurred Cost Submissions (ICS) are both a compliance requirement and a strategic tool, serving as a financial report card that demonstrates how well a contractor manages, allocates, and controls costs on cost-reimbursable government contracts. ICS directly impact compliance, cash flow, credibility, and profitability, ensuring adherence to FAR and CAS, accelerating reimbursements, strengthening…
Read MoreThe Cornerstone of Winning Bids: Understanding Proposal Adequacy for Government Contractors
Summary of Keypoints Proposal adequacy is the baseline requirement for winning government contracts, ensuring a proposal fully aligns with all financial, technical, and compliance requirements outlined in the Request for Proposal (RFP). Adequate proposals reduce risk and protect reputation, as incomplete or inconsistent submissions can be rejected outright or trigger increased scrutiny from agencies such…
Read MoreWhat is Uncompensated Overtime? Understanding DCAA Timekeeping Requirements
Summary of Keypoints Uncompensated overtime refers to hours worked beyond 8 hours per day or 40 hours per week by salaried, FLSA-exempt employees, and must be recorded even though no additional pay is issued. DCAA requires total time accounting, meaning contractors must record and allocate all hours worked (paid and unpaid) to ensure equitable labor…
Read MoreWhat is the DCAA? All You Need To Know as a Government Contractor
Summary of Keypoints The Defense Contract Audit Agency (DCAA) provides audit and financial advisory services to the Department of Defense and other federal agencies to ensure contractor costs are allowable, allocable, and reasonable under the Federal Acquisition Regulation (FAR). DCAA compliance applies to both prime contractors and subcontractors, including small subcontractors, when contracts are cost-reimbursement…
Read MoreUnderstanding Incurred Cost Proposals: Avoiding the Top 5 Audit Issues
Summary of Keypoints Incurred Cost Proposals (ICPs) are required annually for contractors with cost-type or T&M contracts, and reconcile provisionally billed indirect costs with actual incurred costs to establish final indirect rates and calculate over- or under-billings. The ICP functions like a tax return for government contracts, finalizing indirect rates after the fiscal year closes…
Read MoreUnderstanding Allowable Costs Speeds Reimbursement: 6 Best Practices for Avoiding Unallowable Costs
Summary of Keypoints Allowable costs must meet strict federal standards, requiring that expenses be reasonable, allocable, necessary to the project, consistently treated, adequately documented, and compliant with FAR, contract terms, and applicable accounting standards such as GAAP or CAS. Unallowable costs are common but must be excluded from government billings, as submitting them for reimbursement…
Read MoreAre You Ready for a DCAA Floor Check?
Summary of Keypoints A DCAA floor check is an unannounced audit focused on labor and timekeeping, designed to verify that contractors’ timekeeping policies, labor charging practices, and internal controls comply with FAR requirements. Floor checks occur randomly and are not contractor-requested, typically initiated by contracting officers, administrative contracting officers, random sampling, or concerns about a…
Read MoreGovCon 101: What Contractors Need To Know About Indirect Rates
Summary of Keypoints The article is part of a GovCon 101 series focused on selling to the federal government, building on earlier discussions of FAR, CAS, contract types, and the distinction between direct and indirect costs. This installment focuses specifically on indirect rates and rate structures, explaining how indirect costs—those not easily traceable to a…
Read MoreGovCon 101: What Contractors Should Know About Accounting For Government Contracts
Summary of Keypoints The article introduces foundational accounting concepts for government contractors, building on prior discussions of Federal Acquisition Regulations (FAR) and government contract types. It is designed for contractors new to government accounting requirements, explaining how accounting practices differ when the federal government is the customer. The piece highlights why proper accounting is critical…
Read MoreThe Complete Guide to DCAA Pre Award Audits: An 8 Point Readiness Checklist
Sumary of Keypoints A DCAA pre-award audit is required before awarding cost-reimbursable defense contracts, assessing whether a contractor’s accounting system can properly track, allocate, and report contract costs before funding is released. The purpose of the pre-award audit is to determine contractor qualification, focusing on accounting policies, procedures, and internal controls rather than conducting a…
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