Here is the March 2007 issue of the GCNewsletter from Gaffey & Associates Government Contracting Services Group. We hope that you will find its content interesting and valuable. As we have stated previously, your feedback and suggestions for content are always welcome as we go forward. We continue to visit our website at www.GaffeyCPA.com to learn more about the government contracting services that we provide and to gain access to previous issues of the GCNewsletter, the GCAlert and to review White Papers and presentations on various subjects of government contracting interest. We also urge you to contact our alliance members who have provided articles in this and previous GCNewsletters.
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Sam Davidson - Principal
Government Contracting Services Group
703-748-5816
Samuel.Davidson@GaffeyCPA.com |
| THE PENDULUM SWINGS TO OVERSIGHT, FRAUD DETECTION, AND COMPLIANCE-PT1 |
The signs are in the air – are your compliance systems up to the task at hand? The news from Washington for Federal Contractors is not good these days. The new mood in Congress is best described as “get those liars, cheats and thieves” better know as Federal Contractors. This posse mentality is pervasive in Congress. For instance, Congressman Waxman started it off with his report “Dollars, Not Sense: Government Contracting under the Bush Administration” followed by hearings that started this February, with 4 in one week. The Senate Armed Services Committee also held hearings on abusive practices in Department of Defense contracting for services and inter-agency contracting...
| CODE OF ETHICS AND BUSINESS CONDUCT |
A proposed rule was published in the Federal Register on February 16, 2007 (Federal Register, Vol. 72, No. 32, Pages 7588-7590) that would require any government contractor with an award of more than $5 million to institute an ethics compliance system that would include a written ethics policy, and ethics training program and the display of posters on how to reach agency inspectors general to report possible wrongdoings. This proposed rule only applies to contracts performed in the United States that last 120 days or more. The larger more mature contractors already have these mechanisms in place so compliance should not present a significant problem to them. Smaller contractors are the ones that will be most impacted. In that regard the proposed rule indicates that internal controls be matched to the size of the company and its extent of federal contracting. It should be noted that under the Federal Sentencing Guidelines of 2004, in the case of criminal wrongdoing a company without an ethics compliance program, in place and working, would be more severely punished than one with established procedures. Comments on the propose rule will be accepted until April 17, 2007 and can be submitted through the Federal eRulemaking Portal under FAR Case 2006-007.
| DOING MORE WITH LESS AND OBTAINING LESS? |
The following statistics were obtained from DCAA. You can draw your own conclusions. 
| PROCUREMENT OPPORTUNITIES UNDER CAFTA-DR |
Implementation of the Central American and the Dominican Republic Free Trade Agreement (CAFTA-DR) is opening doors to state and federal contracts in the United States, five Central American countries and the Dominican Republic. CAFTA-DR's Chapter 9 eliminates “national preference” obstacles, like U.S. “Buy American” provisions, that previously blocked participation in government procurement markets. Now, when making purchases above stated dollar thresholds, covered agencies and departments in the US Federal government, 7 sub-Federal entities (such as the Tennessee Valley Authority or the Rural Utilities Service) must treat CAFTA-DR and US-owned businesses equally. US businesses must be given the same treatment in procurements in the Dominican Republic, Honduras, El Salvador, Guatemalan, Nicaragua and, if and when implemented there, Costa Rica...[READ MORE]
| R&D TAX CREDIT SEAMLESSLY RENEWED AND STRENGTHENED! |
The 109th Congress passed H.R. 6111,The Tax Relief and Health Care Act of 2006 ( Public Law 109-432 Signed on December 20, 2006 by President Bush) , that included a retroactive extension of the R&D tax credit from January 1, 2006, through December 31, 2007. Also included is language to strengthen the credit with a new credit formula called the Alternative Simplified Credit that would be effective January 1, 2007 through December 31, 2007, by increasing the rates of the alternative incremental credit and creating a new alternative simplified credit that does not use a gross receipts factor.
| CAREERS AT GAFFEY & ASSOCIATES |
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 .
| RETRACTION -DID YOU KNOW! |
In the February issue of the GCNewsletter we incorrectly stated that reversing your ATM PIN number would give you your money and immediately notify the police. We were wrong, as so many readers were eager to point out. For more information on this subject and its history you can go to http://www.snopes.com/business/
bank/pinalert.asp
GAFFEY & ASSOCIATES-YOUR TICKET TO SUCCESS |
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 |
