We are expanding our services to better provide you, our clients and potential clients, with access to the best qualified government contracting resources available. We have formed a working alliance with FedLinx, Inc. ( www.fedlinx.com ) , one of the premier GSA consulting firms in the country and they make a perfect addition to our existing list of client-oriented, value-added services. . .

The benchmark compensation amount for contractors' Fiscal Year 2007 is $597,912. The data used to establish this amount represents the median (50 th percentile) amount of compensation accrued over a recent twelve month period for the top highest paid executives of publicly traded companies with annual sales over $50 million. This amount, which is allowable under government contracts, reflects a 9.4% increase over the FY2006 benchmark of $546,689, does not limit the compensation that an executive may otherwise receive.

This notification can be found in the Federal Register, March 27, 2007 (Volume 72, Number 58), Page 14300.

The goal of many small businesses to work hard, be successful and then become wealthy by merging with or being acquired by a larger company may be a dream of the past. Or at least a lot harder to attain.

Effective June 30, 2007 government agencies must request a size recertification before the start of the 6 th year of a long-term contract (GWAC, GSA MAS and multi-agency contracts of 5 years or more); upon the establishment of a joint venture; in the event of a merger, acquisition or novation; or the straight-forward purchase of one company by another. A recertification is also required when there is a change in controlling interest in a publicly traded company, when 51% of small company is purchased by a single buyer or when there is a change of hands in a controlling minority interest.

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What's going down in Congresses efforts to increases transparency and restores accountability and integrity to federal contracting? Here is a list of some of the suggested congressional initiatives being considered. Fortunately they won't all become law but it gives us a flavor of the current congressional regulatory environment. If you are concerned about these initiatives we urge you to contact your congress person.

The General Services Administration (GSA) issued interim rules on Thursday, February 1, 2007, making all GSA Schedule contracts available to State and Local governments for Recovery Purchases related to disaster recovery and planning. This significantly expands "cooperative purchasing" under the GSA Schedules program, which in the past had only been available for IT products and services. However, purchasing is limited to products and services in support of disaster recovery.

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When does your company determine when an employee has quit, if he or she fails to notify you? Uncertainty as to an employee's employment status can cause difficulties. If once let go for lack of attendance can he or she claim unemployment? Will they have legal recourse for unjustified firing?

To protect your company you should have a documented voluntary quit policies that is read and acknowledged by the employee when hired. An example of such a policy is as follows:

“Any staff exempt or staff non-exempt employee who fails to report for work for three (3) (period to be determined by the company) consecutive working days and who does not contact his/her supervisor with explanation of absence, or who does not return to work on the scheduled date from an approved leave of absence (without appropriate approval of extension of leave of absence), shall be considered to have voluntarily quit. The supervisor shall issue a notice of termination promptly to the employee.”

Our goal is to build a firm of entrepreneurial minded individuals who “partner” with clients to provide creative solutions to achieve the desired goal. Our associates need to be good listeners, responsive, caring, knowledgeable, and committed to our client's success.

Gaffey & Associate's connections and opportunistic outlook enables continued firm growth at twice the industry average. We provide a friendly, collegial, family oriented environment that fosters individual and professional growth.

The Government Contracting Services Group of Gaffey & Associates is looking for individuals interested in becoming a part of our exciting and rapidly growing consulting practice. We need people who are detail-oriented, eager to learn and advance and would be good with clients. A college degree in accounting is required. Experience in government contract cost accounting, the Federal Acquisition Regulation (FAR) and Cost Accounting Standards (CAS) is a positive. Defense Contract Audit Agency (DCAA) experience a definite plus but not required. Contact Sam Davidson at samuel.davidson@gaffeycpa.com .

The Government Contracting Services Group provides hands-on assistance and business advisory services in most areas of government contracting and government procurement regulation compliance. Areas where our experience, knowledge and innovative thinking puts us ahead of our competition include:

•  Design and preparation of indirect cost rate proposals and cost allocation plans that:

•  Facilitate the management decision making process

•  Maximize cost recovery and improve profitability

•  Improve your competitive position

•  Meet regulatory compliance requirements

•  Preparation, submission and negotiation of Requests for Equitable Adjustment to your contract pricing, schedule or both.

•  Establishment and maintenance of compliant business systems and effective internal controls.

•  Performance of business process analysis and operations improvement reviews to identify and prioritize key business risks.

We also provide specialized assistance in the areas of:

•  Accounting system design and assessment

•  Business system assessment (Labor Recording, Billing, Cost Estimating and etc.)

•  Compliance with the FAR, CAS and the OMB Circular requirements

•  Proposal pricing and “red team” reviews

•  Preparation, submission and negotiation of termination for convenience proposals

•  Subcontract management

•  Training seminars on an open-enrollment or in-house basis

Whatever your government contracting needs contact us and tap into a resource that can help you succeed in a very competitive marketplace.

We can be reached by contacting Sam Davidson at 703-748-5816 or via email at samuel.davidson@gaffeycpa.com