In the Memorandum for Regional Directors (MRD) released by DCAA on March 22, 2013, it clarifies the FAR 31.205-46(a)(2) clause for determining contractor’s claimed per diem costs. The latest instruction emphasizes existing Agency guidance of one ceiling when determining the maximum allowable travel per diem rates for contractors. More importantly, it confirms that the daily per diem claimed by contractors would be questioned only if the total cost of lodging plus meals and incidental (M&IE) expenses exceeded the total ceiling amount set forth in the applicable Government travel regulations.
For the most part, the Federal Travel Regulation (FTR), Joint Travel Regulations (JTR) and Statement Department’s Standardized Regulations (SR) apply primarily to Government employees. The parts that do apply to contractors are the definitions of lodging, meals and incidental expenses and the maximum per diem rates. Nevertheless, if you are a contractor, the Federal Acquisition Regulation (FAR) should be the starting point for any questions on travel costs.
Last month, the Federal Acquisition Regulation (FAR) was amended to change the government’s procedures for recording contractor past performance. Specifically, the changes provide factors for government-wide standardization of past performance evaluations and make reporting more consistent and accurate. The final rule requires contracting officials to enter past performance information into the Contractor Performance Assessment Reporting System (CPARS) and sets out revised evaluation rating definitions and descriptions.
For years now, federal agencies have been required to evaluate, at least annually, contractor performance for each contract, order, or modification that exceeds the simplified acquisition threshold. But studies found that reports were not prepared or when they were prepared were inconsistent and often not submitted to any central repository. Under the new rule, that should all change.
The procurement regulations require large business prime contractors to award subcontracts to small businesses to the maximum extent practical. In fact large business primes must establish small business subcontracting goals and a plan for meeting them prior to the award of a contract that exceeds $650,000. For as long as these regulations have been in place, small businesses have complained that large businesses use them to qualify for the award but never give them the promised work or fail to pay when the work is performed.
In response to these complaints, the Small Business Administration promulgated a new rule designed to ensure that small businesses that help a prime win the contract receive their agreed upon share of the work and are paid accordingly. Initially large business offerors must represent in their proposal that they will in good faith utilize the proposed subcontractors for the work envisioned in the proposal. Prime contractors are also required to
Generally, to be eligible for the domestic production activities deduction (DPAD), a taxpayer must earn gross receipts from a disposition of qualifying production property. This typically involves a sale and delivery of a manufactured product by the taxpayer to a customer. However, the IRS recently ruled that a government contractor made a disposition for DPAD purposes despite the fact that title to the property reverted back to the contractor (Technical Advice Memorandum 201314043, 04/05/2013). The ruling disposition was not requiring
As a follow-up to the L2 Federal Resources webinar on “Attributes of an Adequate Accounting System,” Aronson LLC government contracting specialists Nicole Mitchell and Brian Bender have prepared answers to several attendee questions:
Is my contract covered by the Cost Accounting Standards (CAS), and how do I determine the level of CAS coverage (e.g., Full, Modified, Not CAS Covered)?
Click here to download a flowchart that illustrates the method for determining CAS coverage and whether or not your company should be submitting a Disclosure Statement.
Does my company have a robust set of policies and procedures?
At a minimum, your business should have the following written policies and procedures (P&P) in place prior to DCAA review/audit: