| |
IN THIS ISSUE:
· As the Pendulum Swings
· Government Contractor
Risk Management
· The FAR Corner
· Cost Accounting Standards
· Data Dump
· Upcoming Events
· Thought for the Day
|
|
NCMA 24th Annual Government Contract Management Conference
“Improving the Procurement Process: Getting the Bang for the Buck”
Connect with business, legislative, and political professionals to see how innovative acquisition processes can transform into disbursement savings. Explore recent and pending legislation, federal budgeting, service contracting, best practices, acquisition trends, modernization programs in federal contracting, and small business utilization from some of the top government and business officials and their counterparts.
Monday and Tuesday, December 5-6, 2005
|
|
|
|
“When one door closes another door opens; but we so often look so long and so regretfully upon the closed door, that we do not see the ones which open for us.”
Alexander Graham Bell |
|
|
|
Please visit our new (and still being developed) website at www.GaffeyCPA.com. It explains who we are and identifies our many services and specializations. There is also a section labeled “Hot Topics” which includes our Sarbanes-Oxley Resource Center and a Tax Calendar.
From our website you can also access previous issues of the GCNewsletter, the GCAlert, our express notification of significant happenings in the government contracting arena of an immediate nature, and White Papers on various subjects of interest. Presently there are White Papers on “Basic Statistical Sampling” in response to the recent change in FAR 31.201-6 allowing sampling in the identification of unallowable costs, “Introduction to the Equitable Adjustment” and “Unabsorbed or Mis-Allocated Indirect Expenses – The Eichleay Formula”.
We are interested in your thoughts on our new website or any of the subjects included in this or any of our future GCNewsletter issues. You can contact us at:
| AS THE PENDULUM SWINGS // Ethics & Business Conduct |
It has been almost twenty years since the Defense Industry Initiative (DII) on Business Ethics and Conduct was established. It’s essential purpose was to combine the common dedication of its signatories (now over 60 government contractors) to a culture and practice of ethics and right conduct in all business with the Department of Defense (DOD) and with others. These signatories united in the commitment to adopt and implement principles of business ethics and conduct that acknowledge and address their organizational responsibilities under federal procurement policy and law to create an organizational culture in which ethics is paramount, and compliance with federal procurement laws is a strict obligation.
| Government Contractor Risk Management |
Risk Management is a broad term that can be used to describe any number of methods of avoiding financial and/or physical loss. Some of different types of Risk Management include: Avoidance, Retention, Risk Transfer, and Insurance. In developing and executing a Risk Management plan, most Government Contractors (GCs) will employ several of these methods at one time or another. Each method presents its own set of issues that should be carefully reviewed and understood.
Payment Withholding
One of the final rules issued on September 30, 2005, Implementation of the Anti-Lobbying Statute, amends FAR 52.203-11 and FAR 52.203-12 to prohibit funds from federal contracts, loans, or grants from being used for lobbying the executive and legislative branches of the government and requires recipients of federal contracts, loans, or grants above $100,000 to disclose lobbying activities using non-federal funds. It was effective September 30, 2005. The full text can be found here.
Three other final rules issued on September 30, 2005 and effective October 31, 2005 are addressed in our GCAlert issued October 7, 2005.
| COST ACCOUNTING STANDARDS |
The future of the CAS exemption for contracts that were executed and performed entirely outside of the United States, its territories, and possessions (48 CFR 9903.201-1(b)(14) may ride on the answers received as a result of a Staff Discussion Paper issued on September 13, 2005.
The questions asked include:
- Does a statute presently exist requiring retention of this exemption?
- Does the granting of an exemption promote the CAS Boards primary objective of uniformity and consistency?
- What is the significance of location of contract performance to CAS applicability?
- What are the advantages and disadvantages of the exemption for contracts performed entirely outside the U.S.?
- How has the exemption historically been utilized?
As we hear more we will keep you appraised.
Personal Owned Vehicle Mileage Reimbursement Rates
As reported in our September 23, 2005 GCAlert, effective from September 1, 2005 the Privately Owned Vehicle (POV) Mileage Reimbursement rate has been increased (read more). The new rate is 48.5 cents per mile. The Airplane rate of $1.07 per mile and the Motorcycle POV rate of 30.5 cents per mile remain unchanged.
| Effective Date |
Rate |
|
September 1, 2005 |
$0.485
|
|
February 4, 2005 |
$0.405 |
|
January 1, 2004 |
$0.375 |
|
January 1, 2003 |
$0.360 |
|
January 21, 2002 |
$0.365 |
|
January 22, 2001 |
$0.345 |
|
January 14, 2000 |
$0.325 |
|
April 1, 1999 |
$0.31 |
|
September 8, 1998 |
$0.325 |
|
June 7, 1996 |
$0.31 |
|
January 1, 1995 |
$0.30 |
Meals and Incidental Expense Rates
A nationwide meals study was recently completed to more accurately reflect actual meal and incidental expense costs. The standard amount for FY2006 is $39 per day, up from the previous $31 allowance. The standard CONUS lodging rate remains unchanged at $60 per day.
Depending on location, the meals and incidental expense breakdown effective October 1, 2005 is as follows:
| M&IE |
$39 |
$44 |
$49 |
$54 |
$59 |
$64 |
| Breakfast |
7 |
8 |
9 |
10 |
11 |
12 |
| Lunch |
11 |
12 |
13 |
15 |
16 |
18 |
| Dinner |
18 |
21 |
24 |
26 |
29 |
31 |
| Incidentals |
3 |
3 |
3 |
3 |
3 |
3 |
|
|
