Posts Tagged ‘government contractors’
Understanding 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 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…
Read MoreWhat is an Adequate Accounting System? 10 Questions to Determine if Your Accounting System is Adequate for Government Contracts
In many cases, having an “adequate accounting system” is an integral part of successfully winning and performing on Federal contracts. Many companies find it challenging to determine when accounting system requirements are triggered and how to navigate obtaining a determination of adequacy. Our clients and prospects unanimously have the same questions. Since these questions are…
Read MoreWhat Are the 5 Most Common DCAA Post-Award Audits for DoD Government Contractors?
Contractors that have been awarded a contract with the federal government may be subject to a number of post-award audits. These audits are often conducted by the Defense Contract Audit Agency (DCAA) and commonly include, but are not limited to, audits of costs incurred during contract performance to validate that these charges comply with Federal…
Read MoreKey DCAA Terms to Understand for Contractors
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…
Read MoreWhat Happens During a 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…
Read MoreHow to Prepare for DCAA 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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