The government contracting world is a
tightly drawn regulatory tight rope walk. There are three essential elements
that any federal contractor should learn which are DCAA Compliance, SF 1408 and Incurred Cost Submissions. Although
they are not merely buzzwords, these become core pillars of accountability,
monetary safety, and longevity in the government contracting sphere.
DCAA Compliance What is DCAA Compliance?
This is the capacity of a contractor to
adhere to the accounting and financial guidelines of the Defense Contract Audit
Agency (DCAA). This is to ensure that the taxpayer’s money is not squandered
and that the contractors remain exposed on every dollar spent. It is not just a
requirement that is required once, but a continual obligation, more so, to
contractors who handle cost-reimbursable contracts.
To be complying, businesses must adopt an
acceptable accounting system, timekeeping with strict compliance with its
allocations of the indirect costs in fair proportions, and good internal
controls are essential. Failure to do so may result in invalidated contracts or
payment delays, which will harm the reputation and revenues.
What is so Special about SF 1408?
SF 1408 (Preaward Survey of Prospective Contractor Accounting System) is the important control point. The government would like to have certainty that your accounting system has some standards when it comes to awarding a cost-reimbursable or flexibly priced contract prior to its award. SF 1408 checks the ability of a contractor to have a system that:
· Direct and indirect costs must
be divided properly
·
Link cost data to current and
correct data Provide cost data in a timely and accurate manner
·
Billings to the government
·
Ensure the best record of time
and work division actions
·
Failure in this survey means
that your business stands a risk of failing to get the contract.
·
Learning Incurred Cost
Submissions
It is both good practice and a requirement
in FAR 52.216-7 that an incurred cost proposal must be made complete and
accurate. This is a major issue which several companies are faced with due to
its depth and paperwork entailed. There were errors or errors that may cause
delays or audits.
DCAA Consulting and How it Can Help
The silver lining is that - You do not need
to go through everything without help. DCAA Consulting LLC is focused on
assisting companies to become and stay DCAA Compliant, to pass the SF 1408 pre
award survey successfully, and to formulate proper Incurred Cost Submissions. You are either new or a familiar participant in
government contracting but our professionals can take you through all the way,
say, through implementing the system, audit requirements, and so on.
Stay compliant. Stay competitive. When you
call us at DCAA Consulting, you can be sure that your business will be
according to the federal contracting standards.