As a follow-up reminder, the Potomac Area Chapter of the IMA along with the Greater Washington Society of CPAs presents "Current Issues in Government Contracting." on Thursday, October 20, 2005, at the Doubletree Hotel in Crystal City, 300 Army Navy Drive, Arlington, Virginia 22202. Sam Davidson of Gaffey & Associates Government Contract Services Group will be presenting on the topic of Terminations and Requests for Equitable.
This is the first GCAlert, our express notification of significant happenings in the government-contracting arena of an immediate nature. Each GCAlert will be sent directly to you electronically and will be posted on our website at www.gaffeyCPA.com along with our bi-monthly GCNewsletter.
If you would like more information on the subjects included in this or any of our future issues you can contact:
We told you in our September 2005 issue of the GCNewsletter it was coming and here it is. On September 9, 2005 the Internal Revenue Service opened the way for the General Services Administration to raise the mileage reimbursement rate from 40.5 cents a mile to 48.5 cents per mile. The new higher rate is effective from September 1, 2005 through December 31, 2005 when the new 2006 rate will take effect. The 2006 rate should be announced in the next three months. Approximately 70% of this rate covers non-fuel driving expenses. The Airplane rate of $1.07 per mile and the Motorcycle POV rate of 30.5 cents per mile remain unchanged.
AAA Mid-Atlantic has performed a study that shows operating costs at about 56 cents per mile, including ownership, operating and fuel costs. Legislation is before the Senate to increase the reimbursement rate even higher to 60 cents per mile through December 31, 2006.
As we suggested in the GCNewsletter, if you have contracts that include a significant amount of mileage costs you may want to consider addressing this issue contractually through an advance agreement.
