An important milestone for government contractors and particularly to negotiated contracts is an adequate cost accounting system. Further, in today’s contracting environment having an adequate accounting system can be a pre-requisite for contracts. Today many Requests For Proposals (RFP) require it. The need for a compliant accounting system depends on the contractor’s circumstances and contract types. For instance negotiated fixed price contracts do not require an adequate accounting system, only that the cost or pricing data submitted meets the cost or pricing data requirements. These […]
DCMA Jobs For You
There are many reasons why working for the federal government can be appealing, whether it is the benefits, the pay or simply because you wish to give something back to your country. But what branch of the government is best for you? If you are thinking of working for the Defense Contract Management Agency (DCMA), there are many fulfilling careers for you to choose from. DCMA jobs are some of the most personally satisfying jobs out there. You can take pride that you are working […]
How to prepare an Incurred Cost Submission
If you have a federal contract or grant, you will probably be creating an Incurred Cost Submission. That is to say, a submission to the federal government to account for the costs you have incurred during a specific project. These include both direct and indirect costs and are usually due within six (6) months of the end of the fiscal year that your project was completed in. As these submissions are detailed and complicated, it is recommended that you have an accountant, who is an […]
Indirect Cost Rates when dealing with federal contracts in general
Direct cost rates are rates that can easily be quantified within a contract. They include the cost of materials, wages of workers directly assigned to a project, subcontractors, etc. while indirect rates are rates that cannot be calculated without great effort. You may need to calculate an indirect rate if you are awarded a federal contract (or grant) in which cost is reimbursed. It is a manner of assuring fair and equitable reimbursing across different businesses and organizations. Indirect rates are used for Incurred Costs […]
How are Federal Contracts awarded?
In the private sector, contracts can vary greatly and are regulated only as far as they relate to the legality of the services or products being offered, and in that both parties consent to the contract. Otherwise, technically, two private individuals have virtually no restrictions on the content of their contracts. When dealing with the public sector however, it is not as simple. This is because the government must maintain an inscrutable level of integrity and transparency. Since they are dealing with public money and […]
Cost Accounting and the Cost Accounting Standards
Cost accounting is the practice of anticipating for the costs associated to running a business or producing a product. Since many costs can be flexible, it is not an exact science but when dealing with large volumes, the price distortions were generally not very big. Since cost accounting relates directly to a business and its managers, the practice varies greatly from company to company and even from department to department within the same company. Unlike general accounting, the figures in cost accounting do not generally […]
How to be DCAA Compliant
If you or your company has been fortunate enough to win a government contract you will have to be able to remain compliant with the Defense Contract Audit Agency. There are some important steps that you can take to ensure that you and your company will not have any problems if and when you face an audit. In order to show your compliance your company needs to have documented policies and procedures that are strictly followed. You must also have a system in place […]
DCAA Preaward Surveys
When you are in the running to win a government contract the DCAA will perform a preaward survey of your business to determine if it is capable of perform all the duties that the contract entails. Their main focus will be on two categories. First, they will want to ensure that if your company is awarded the contract that it has the financial means to complete all the tasks that are required. Second, they want to check if your accounting system is good enough to […]
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Senate Subcommittee Hears Arguments to Disband DCAA
In his State of the Union address, President Obama talked of the need to overhaul the way that the government does business in order to make it more efficient. He said, “We live and do business in the information age, but the last major reorganization of the government happened in the age of black and white TV. In the coming months, my administration will develop a proposal to merge, consolidate, and reorganize the federal government in a way that best serves the goal of a […]