You will notice that we have changed the format of the GCNewsletter. The articles are still intended to provide you with an executive-level in-sight into current government contract accounting, compliance and contract administration issues no matter what your company's size. We hope you will find them informative, thought provoking and a value added resource to you and your organization.
We continue to invite you to visit our website where you can access previous issues of the GCNewsletter, copies of our express notification bulletin GCAlert, White Papers and presentations on various subjects of government contracting interest. It can be
found at:
If you have any questions or comments relative to our website or the articles included in this issue of the Government Contracting Newsletter please contact us.
| Increased Justice Department Efforts Target Procurement Fraud |
In February 2005, then U.S. Attorney for the Eastern District of Virginia, Paul J. McNulty created a task force that brought together more than two dozen Defense and civilian agencies to combat fraud among defense and homeland security contractors (“As the Pendulum Swings, Ethics and Business Conduct”, GC Newsletter, November 2005, Volume 1, Issue 2). The group sought to boost the number of prosecutions for procurement fraud...
| Along A Similar Note-Everyone Else Doing It Does Not Make It Right! |
An article in the Wednesday, October 11, 2006, Washington Post contributed by Timberly Ross of the Associated Press indicated that Warren E. Buffett told all the managers of his company Berkshire Hathaway that "Everyone else is doing it" is no justification for unethical business practices. In his September 27 th memo,Buffett cautioned managers that many corporate scandals arise because questionable activity is accepted as normal behavior...
At a Northern Virginia Technical Council Business-to-Government Breakfast Meeting on Wednesday, October 11, 2006, the General Services Administration reaffirmed it's commitment to bring the average time it takes businesses to get listed on its contracting schedules down to 30 days. The 30-day pledge was first made by Lurita Doan, the new Administrator of the General Services Administration, in June...
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| R&D Tax Credit? Yes or No? |
Congress created the Research & Development (R&D) tax credit in 1981 to give U.S. companies a better return on their investment in technology advances and to encourage them to spend more on those activities in the United States. Many companies that take full advantage of the opportunity that the R&D credit provides are concerned that this research and experimentation tax credit wasn't extended by Congress...
| Profit Limits on GSA Schedule Contracts |
Here are some facts about GSA's policy on schedule pricing and profit restrictions:
- GSA does not have any rule that limits service contract vendors on schedule contracts to a 10 percent profit margin.
- GSA negotiates schedule contracts in accordance with FAR Part 15 and the consistent instructions contained in the GSA Acquisition Manual (GSAM) 515.4.
- When schedule proposals are based on cost FAR 15.404-4 applies.
- If statutory restrictions in accordance with FAR 15.404-4(c)(4)(i) apply it would also be to cost proposals on schedule programs.
- Schedule contract are not cost-plus-fixed-fee contracts and therefore the 10 U.S. Code 2306(d) and 41 U.S.C/ 254(b) profit limits do not apply.
GSA's pricing policies for schedule contracts are consistent with FAR Part 15.4 for all GSA schedules – products and services.
| Basic Small Business Programs |
Small Business (SB) – Located in U.S, organized for profit, including affiliates is independently owned & operated, not dominant in field of operations in which it is bidding on Government contracts, AND meets Small Business Administration (SBA) size standards included in solicitation. Size standard is based upon the North American Industrial Classification Standard (NAICS) assigned to the specific procurement dependent upon product/service purchased.
Woman-Owned Small Business (WOSB) – Small Business, at least 51% owned by ≥ 1 women, AND management & daily business operations controlled by ≥ 1 women.
Small Disadvantaged Business (SDB) – Small Business, unconditionally owned & controlled by ≥ 1 socially & economically
disadvantaged individuals who are of good character & citizens of the U.S., AND SBA-certified.
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| Social Security Number Verification |
Little known software exists within the Social Security Administration (SSA) that can verify names and social security numbers. Its main goal is to ensure accurate wage reporting so the SSA knows which workers qualify for social security. Another use is to provide employers with a means of verifying a workers' legal status (e.g., illegal immigrants)...
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| CAREERS AT GAFFEY & ASSOCIATES, PLC |
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. A college degree is required. Experience in government contract cost accounting, the FAR and CAS is required. CPA and/or DCAA experience a plus but not required. Contact Sam Davidson at
samuel.davidson@gaffeycpa.com
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