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Government Contract Accounting

Why January is the Best Time to Begin Preparing the Incurred Cost Proposal

A new year presents new opportunities for working more efficiently and effectively. When dealing with federal contracts, the Incurred Cost Proposal (ICP) presents one of the biggest opportunities. You’re closing 2016 and preparing for taxes anyway. What better time to gather information and documents for the ICP? Not sure what an Incurred Cost Proposal is…

January 26th NCMA Webinar: Hot Topics in Unallowable Costs

Understanding unallowable costs is a key factor in profitably managing government contracts. Government agencies will only reimburse contractors for costs that are considered reasonable, allocable and allowable under the contract terms, Cost Accounting Standards or Generally Accepted Accounting Principles. Identifying these costs is important to avoid billing issues, incurred cost audit findings, and to pass…

Allowable Rental Costs

We often receive questions regarding the amount of allowable rental costs between related parties. Rental costs are normally allowable to the extent they are reasonable and allocable. In an effort to reduce operating costs, small business owners often purchase a building under a separate entity and lease it back to the government contracting entity at…

DoD Needs Pricing Improvement

A number of recent DoDIG reports indicate that DoD did not make an accurate determination of fair and reasonable pricing, could have purchased items at a lower price, or could have purchased fewer items. While excess inventory does not necessarily mean the prices were not fair and reasonable, it does mean that DoD spent more…

SF1408 Accounting System Review

Has your prime or contracting officer told you that you need an approved or adequate accounting system before your next award? What exactly is an approved or adequate accounting system? In the world of government contracting, most people think of DCAA-approved accounting systems. There are a few misnomers in that statement: DCAA does not approve…

Increased Profit Margins On Government Contracts

What are your current profit margins on government contracts? Are you still bidding a fee of 6% to 10%? Many contractors think they must accept low profit margins on government contracts. Not true! FAR 15.404-4(a)(3) clearly states, “Both the Government and contractors should be concerned with profit as a motivator of efficient and effective contract…