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Government Contractors' Newsletter |
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For the serious small government contractor |
January 2011 | |
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Greetings,
Yes it's 2011 and already January is almost over!
The more things change, the more they stay the same. If there is to be a change in your life and business, it is up to you to effect that change.
By the way, how is your anxiety level? You may want to read the Inspirational Corner in this issue.
To Add To your To Do List :)
- Calculate, Review, Print Out, and File your 2010 Actual Indirect Rates. Keep them ready available.
- To the best of your ability, do the same for your 2011 Budget/Projected Indirect Rates. But only if you expect significant changes in your business operations. Which hopefully you do.
- Review your Unallowable Accounts to check that all allowable costs are included AND that you have not included costs that should not be there.
- Review your Chart Of Accounts to determine if you should change the description of any accounts, or add/delete accounts.
- Check your contracts to determine if there are any closed contracts. Be sure that all contract closing activity is complete.
- Do a brief review of all existing contracts to refresh yourself on the requirements, contacts, any cost limits, performance issues, and where you are at with actual costs to contract limits.
- Make contact with your customers to see if there are any upcoming requirements that you can respond to.
Finally, but not by any means the last, Allow Yourself to B r e a t h e !
- Don't Over Commit.
- Don't Under Perform.
- And Don't Let Pride Be Your Downfall. (read the inspirational corner)
So HERE IT IS
- If you can't, then say so.
- If you don't know, then say so.
- And if you really, really, really, just don't want to, then don't.
I hope you have a safe and productive day, and remember who your real BOSS is.
Enjoy the issue!
Paul Sr.
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Revised TINA Cost or Pricing Threshold and other heavily used thresholds:
The cost or pricing data threshold (FAR 15.403-4) is raised from $650,000 to $700,000. This was effective October 1, 2010.
Other Thresholds -
- The simplified acquisition threshold (FAR 2.101) is raised from $100,000 to $150,000.
- The FedBizOpps preaward and post-award notices (Part 5) remain at $25,000 because of trade agreements.
- Commercial items test program ceiling (FAR 13.500) is raised from $5,500,000 to $6,500,000.
- The prime contractor subcontracting plan floor (FAR 19.702) is raised from $550,000 to $650,000, and the construction threshold of $1,000,000 increases to $1,500,000.
- The micro-purchase base threshold of $3,000 (FAR 2.101) is not changed.
Make a note for your records! |
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Teleworking and Federal Contractors. Is it allowable? Can it be proposed? How should it be handled?
Response:
Since the Federal telework program and policies cover only Federal employees, Federal contractors are not governed by OPM and GSA telework guidance or by individual agency policies, and are not counted in the annual Telework Report to Congress.
However, this does not prohibit - and should not prevent - contract employees from actually teleworking, as appropriate.
Telework arrangements for contractors should be negotiated with both the contractor's own employer and with the appropriate Federal agency official, so policies and procedures are in close alignment and all concerned parties are in agreement. Telework language may even be integrated into the contract itself.
Some additional questions and requirements to consider for telecommuting.
In accordance with section 1428 of Public Law 108-136, an agency shall....
follow this link for more
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INPUT (www.input.com)
the marketing option to consider
Don't forget to follow-up with INPUT for your in-depth online demo of their government marketing tools!
Contact Karen Buckley directly at
kbuckley@input.com
No Marketing - No Growth!
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Adding Indirect Costs and Profit/Fee to Direct Travel - Allowable?Inquiry:
Can a subcontractor add Overhead and Profit to Per Diem costs?
Response:
Indirect Cost - Typically a firm (prime or subcontractor) can add Overhead or G&A to its' Direct Travel cost because allowable cost include both Direct and Indirect. The caveat is that this method must be the subcontractors normal policy AND the direct travel cost must be part of the BASE used to calculate their Indirect Rate.
They should be able to support this assertion by showing their Documented Policy OR describing the details of how they develop and apply their indirect rate(s). FAR 31.203 on Indirect Cost discusses consistency which is important in determining if indirect cost can be applied to direct travel.
Profit/Fee - Profit/Fee is looked at separately...
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 Allowability of Lunches?
Inquiry: We were wondering if the following were allowable: 1. Taking an established client to lunch 2. Taking a potential client to lunch 3. Lunches bought during training away from the office
Response: It Depends! There are several cost principles you must look at to determine if the specific type of expense is allowable or not. 5 key cost principles to review are, 1. 31.205-1 (Public relations and advertising costs; 2. 31.205-12 (Economic planning costs); 3. 31.205-18 (Bid and Proposal costs) and 4. 31.205-38 (Selling Costs). 5. 31.205-43 and also consider 31.205-43 As you can see it is not as Black and White as it first appears!
Under 31.205-38 Direct Selling is one of 5 broad selling categories. Under subsection 31.205-38 (b)(5), Direct selling efforts are described as those acts or actions to induce particular customers to purchase particular products or services of the contractor. Direct selling is characterized by person-to-person contact and includes such efforts as familiarizing a potential customer with the contractors products or services, conditions of sale, service capabilities, etc. It also includes negotiation, liaison between customer and contractor personnel, technical and consulting efforts, individual demonstrations, and any other efforts having as their purpose the application or adaptation of the contractors products or services for a particular customers use. It goes on to state that The cost of direct selling efforts is allowable. But please always remember the reasonableness principle.
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Career Opportunity -
Government Accounting Specialist
Position Summary
Mortenson Construction is seeking an experienced and motivated Government Accounting Specialist to develop, implement and maintain accounting policies and procedures in support of the company's government contracting businesses with federal and selected state agency customers.
Application Information
To apply please visit our website at: www.mortenson.com/JoinOurTeam_Career_Opportunities.aspx The position is titled "Government Accounting Specialist" IRC 620
Feel free contact Lisa Weiskopf at lisa.weiskopf@mortenson.com for any further questions.
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Cost & Pricing Workshop for Government Contractors - Parts 1 and 2
Next Scheduled Workshop: Huntsville, AL
March 23-24, 2011 8:30A.M. - 4:00 P.M.
8:00 AM - Registration, Refreshments, Housekeeping - Class Instruction Begins at 8:30 AM
Training Center Location
688 Discovery Dr, Huntsville AL 35806 - In MTA, Inc. Building
[Parking and Entry in Back of Building Driveway]
Register Now - Chose Day 1 (Part 1), Day 2 (Part 2), or Both
Part 1 is strongly recommended prior to Part 2
BRING YOUR FAVORITE HANDHELD CALCULATOR ___________________________________________________
CPA's Receive 7.0 CPE Credits Per Day
All Attendees Receive a Completion Certificate with equivilent CEU's
Can't make a workshop? We got you covered. The best selling and "Only Full Day" Live DVD (4 set) on Cost and Pricing for Government Contractors - Part 1 is available for your convenience. More on DVD
Choose the option that works best for you and your staff in this critical aspect of government contracting.
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 Inspirational Corner: Anxiety can be Overcome
"What If" - Two words that "reek havoc" in most lives everyday. Worrying about what may happen. What if I get sick? What if I lose my job? What if he/she leaves me? What if I have an accident? What if my boss is upset? What if someone attacks me? What if? What if? What if?
Don't get me wrong. I am not asking to ignore planning or to be careless. We are simply told not to worry about what may happen. See Matthew 6:34 I am concernced about all that is happening around me, and even to me. But I try not to worry or be anxious about things. I am still growing in this area myself! Review the following information closely. Make a copy. Keep it close to you and read it when you seem to be worrying to much. Gods' Wisdom is Priceless!
The following list shows the various things that make up an average person's anxiety. Anxious individuals focus on:
1 - 50% of events that will never happen happen 2 - 25% of occurrences of the past that cannot be changed
3 - 10% about unconfirmed criticism by others
4 - 10% about health (much of it apprehensive)
5 - 5% about Real Problems that Will Be faced
Did you get it? 95% of worry and anxiety is about things we should not be generally worrying about. Only 5%....Only 5%....Only 5% are Real Problems.
What if the 95% of wasted energy was focused on the 5% of Real Problems?
So how can you live one day at a time and minimize worry? The answer can once again be found in His Word. And it's free. An effective antidote for worry is Contentment! See Phil. 4:11,12
Did you know that contentment is not an inheritable attitude but an acquired characteristic. Paul says that "I have learned" (vs 12).
In this day and age, in which we face so many problems, there is a need to develop a sense of contentment for what we presently have and not to worry about what might come tomorrow.
Till next time, remember, you are in my prayers. Please keep me in yours.
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