Write Clear, Up-to-Date Instructions for Policies and Procedures
Well-documented written policies and procedures are a critical element of maintaining your organization’s ability to continue winning government contracts. Several contract clauses require procedural documents for internal control systems related to such activities as making estimates and purchases. In addition, contractors must have policies, procedures, operating instructions and other control information available to help ensure…
Speed Up Payment on Receivables
Receivables don’t have much value if they aren’t turned into cash. Your organization really needs to keep tight control on its invoices outstanding so you can get an accurate picture of the receivables situation and take steps to improve the turnover of those accounts. Speed Up the Process Here are five steps that can help…
Are You Prepared for Audits of Your Business Systems?
Many US government contractors are expected to comply with contractual requirements for maintenance of adequate business systems. The Federal Acquisition Regulation (FAR) and Defense Federal Acquisition Regulation Supplement (DFARS) clauses incorporated into U.S. government contracts list detailed criteria associated with business systems for: Accounting, Estimating, Material management and accounting, Purchasing, Earned value management, and Property….
Outsourcing: Eight Steps to Help Mitigate Risks
The outsourcing of business processes has helped numerous companies improve their financial performance, as well as increase customer satisfaction. In extreme circumstances, outsourcing can literally ensure a company’s survival. However, it can involve a number of risks. In order to determine if outsourcing makes sense for your organization, consider taking the following steps: Identify and…
Your Provisional Billing Rates
Do you have approved provisional billing rates for your interim billing and financing on your US government contracts? The contract clause in the Federal Acquisition Regulation (FAR) 52.216-7, Allowable Cost and Payment, is included in your cost reimbursable contracts. Paragraph (e) of this clause provides that: Until final annual indirect cost rates are established for…
Chapter 11 Bankruptcy Gives Companies Breathing Room
In an uncertain economy, many companies seek a fresh start under Chapter 11 bankruptcy proceedings if they think they could be profitable by getting relief from their debts. Generally, filing Chapter 11 is done voluntarily by a company to protect itself from creditors. It’s different from Chapter 7, which involves liquidating or selling off the…
How to Prepare a DCAA-Compliant Cost or Price Proposal
As the federal fiscal year comes to a close in late September, government contractors will be gearing up to submit proposals for new federal work, particularly with the Department of Defense. While many contractors will receive new awards, some will unfortunately make costly mistakes in their price proposals that can easily be avoided. Join GRF…
How Does Your Business Handle Fringe Benefits?
The Federal Acquisition Regulation (FAR) 31.205-6(m) states that, except as provided otherwise (in FAR Subpart 31.2), fringe benefits are allowable to the extent that they are reasonable and required by: Law; An employer-employee agreement; or An established contractor policy. An example of a fringe benefit cost that is not allowed is the cost of a…