Government Contracting: Defining and Developing Indirect Rates

What is an indirect rate? One of the most perplexing aspects of cost accounting for government contractors is understanding indirect rate structures that are compliant with regulations. The Federal Acquisition Regulations (FAR) and Cost Accounting Standards (CAS) provide the requirements for distinguishing direct and indirect costs and the development of indirect rates. FAR 2.101 Defines [...]

2020-03-13T20:21:29-05:00March 13th, 2020|GOVERNMENT CONTRACTING|

How Important is Compliance with Government Regulations to a Firm’s Accounting System?

For firms that want to do business with the Federal Government, it is a good idea to set up their cost accounting to be compliant with federal regulations from the start. The specific need for a compliant accounting system depends on the contractor’s circumstances and contract types. If a firm has or is contemplating bidding [...]

2018-11-12T15:42:25-06:00September 19th, 2018|GOVERNMENT CONTRACTING|

New to Federal Contracting? Read on Before Hanging Your Shingle

A business does not have to produce aircraft carriers to work with the federal government. Firms specializing in information technology, systems engineering, and testing and evaluation are good examples of businesses that are involved in federal contracting (without making aircraft carriers). Government contractors must follow complex rules and regulations to comply with awarded federal contracts, [...]

2018-11-12T15:43:00-06:00February 26th, 2018|GOVERNMENT CONTRACTING|

How to Achieve SBA 8(a) Program Compliance

The Small Business Administration (SBA) established the 8(a) Business Development Program to lend a helping hand to small businesses by providing them with access to federal and private procurement markets, management, technical, and financial assistance. Membership lasts nine years with a one-time eligibility restriction. Given this timeline, it is important for small businesses to understand SBA [...]

2018-11-12T15:55:52-06:00August 9th, 2012|GOVERNMENT CONTRACTING|

Hatching a Plan to Comply with FAR Cost Principles

Which came first: the contract or the excluded expense? In the government contracting coop, it may not matter. Government contractors must segregate and allocate allowable direct and indirect costs charged to government contracts. However, certain expenses are excluded under Federal Acquisition Regulation (FAR 31). Contractors who do business with the U.S. government should be familiar [...]

2018-11-12T15:56:14-06:00February 14th, 2012|GOVERNMENT CONTRACTING|