Common Problems for the Incurred Cost Submission Besides of failing to submit an incurred cost submission (ICS) when required by the contract (“Who needs an Incurred Cost Submission?”), some of the most common ICS problems are found within the recording…
Read MorePreaward Survey Failures– Part 1
Top 5 failures in a Preaward Survey Part 1 of 2-part series The preaward accounting system survey or audit (better known as preaward survey) is an evaluation on the prospective contractor’s accounting system. It is documented on SF 1408. This evaluation…
Read MoreWho needs an Incurred Cost Submission?
What is an Incurred Cost Submission and Who Needs to Submit One? The Federal Acquisition Regulations (FAR) clause FAR 52.216-7 requires government contractors to submit final annual indirect cost rates six months after the fiscal year end; known as the…
Read MoreCost Reimbursement Contracts
Cost Reimbursement Contracts Federal Acquisitions Regulations (FAR) 16.301-1 defines cost reimbursement contracts as contracts which allow for payment of allowable costs up to the agreed estimated ceiling amount. There are four types of cost reimbursement contracts. A cost sharing contract…
Read MoreFirm Fixed Price Contracts
Firm Fixed Price Contracts Federal Acquisition Regulations (FAR) 16.202-1 describes a firm fixed price contract (FFP) as a contract which “provides a price that is not subject to any adjustment on the basis of the contractor’s cost experience in performing…
Read MoreContract Related Assets and Liabilities
Contract Related Assets and Liabilities There are several situations that give rise to contract related assets and liabilities when working with the government. According to section 912-310-25 (page 14) Recognition of the Financial Accounting Standards Board’s (FASB) accounting standards, receivables…
Read MoreUnallowable Cost Events
Unallowable Cost Events Unallowable events can seem harmless enough, but are they really? What is the real impact of unallowable events for government contractors? Before delving into the impact, let’s take a quick review of what is meant by the…
Read MoreBudget for PBR’s and Price Proposals
Why Budgets are Important for PBR’s and Price Proposals Part 2 of a 2-part series Provisional Billing Rates and the Budget Provisional Billing Rates (PBRs) are crucial for government contractors. PBRs are the projected indirect cost rates, like fringe, overhead,…
Read MoreOverhead versus G&A Indirect Costs
Overhead versus G&A Indirect Costs Is there an important difference between a general and administrative (G&A) expense and an overhead (OH) expense? Do these indirect costs really matter? The answer is yes if you want to remain a government contractor…
Read MoreRetro Pay or Bonus?
Retro Pay or Bonus? How many times have your government contracts received approval for rate changes after the employees have been paid? This causes payroll dilemmas for many government contractors. Your employee worked 50 hours on a project at the…
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