PVBS
SEPTEMBER 2009
 
High-Growth Government Contractor News
 is published monthly by Pleasant Valley Business Solutions (PVBS) for fast-growing companies that provide services and/or sell products to the Federal Government. Articles may be submitted to newsletter@pvbs.net.
 
Contact PVBS at 703.391.0977.
 
Having trouble reading this newsletter? View this in your browser.
In This Issue
Changing Environment: Revised DCAA Audit Guidance is Another Concern for Government Contractors
H1N1 Flu's Potential Impact on Government Contactors' Commercial Insurance Programs
 
---------------------------------
   
 
From the Desk of Bernard Mustafa
 

Business Opportunities Abound at Microsoft's Annual GovCon Summit on November 17  

PVBS is very excited to be the Platinum Sponsor for the Third Annual Microsoft Government Contractor Summit on Tuesday, November 17 at the Fairview Park Marriott in Falls Church.  The event has become one of the region's leading business technology conferences for government contractors.  This year's event features an action-packed agenda with plenty of strategic information to help growing government contractors transform their business operations and financial management infrastructure.  Executives will learn about business opportunities, meet teaming partners, and network with leaders in the industry.
 
The keynote addresses particularly excite me.  Carolyn Brubaker, Microsoft Federal Chief Transition Officer, will discuss how Microsoft is addressing the president's Federal technology transition initiatives and how they impact our industry. Ms. Brubaker is responsible for opportunity development and bidding strategies, line of business initiatives, and executive relationships with Microsoft's government customers. As the subject matter expert for Federal, she leverages Microsoft's best practices and solutions from other sectors to the public sector domain.  She is an expert on how government contractors can grow their business in the Government 2.0 era.
 
The lunch keynote features Dr. Stephen Fuller, George Mason Professor of Public Policy and Regional Development and Director of the Center for Regional Analysis, presenting "The Shape of the Recovery." Dr. Fuller is one of the country's thought leaders in the field of urban and regional economic development.  He will focus on the signs of recovery and the outlook for the economy over the coming several years.  Dr. Fuller's presentations are always informative and compelling.
 
I look forward to seeing you at the Summit. Click here to register.
 
Best regards,
Bernard Mustafa
CEO, PVBS
www.pvbs.net
----------------------------------------
 
Changing Environment: Revised DCAA Audit Guidance is Another Concern for Government Contractors
 
Mark Roberts is a partner with Argy, Wiltse & Robinson, P.C. (Argy), a full-service, independent public accounting firm.  He has over 25 years of experience in government contracts having worked in private industry, public accounting and at a law firm serving as a consultant and litigation specialist. 
 
ArgyWe continue to see a fundamental shift in the DCAA's approach to contract audits, a shift that is making it increasingly more difficult to do business with the DCAA. In July 2008, GAO issued a report criticizing the DCAA for its failure to properly follow Generally Accepted Government Auditing Standards.  This report and subsequent guidance has had an adverse effect on many contractors' relationships with the DCAA. Many contractors report that the DCAA is less willing to work closely with them to resolve issues fearing it may violate the DCAA's need for independence.  In the wake of Gov 2.0 and the Government's initiative to promote transparency concerning federal spending, it is no wonder that the DCAA is taking a strict approach to conducting contractor audits.

In December 2008, the DCAA issued revised audit guidance on Denial of Access to Records Due to Contractor Delays. The prior audit guidance stated that supporting information should be provided to the auditors within a reasonable period of time, but did not include guidance on expected or required timeframes for response. The revised guidance defines a reasonable time period and requires auditors to take swift and punitive action (i.e., subpoenas, suspension of costs) if contractors fail to provide information in a timely manner. The revised guidance also makes clear that the DCAA strongly believes that access to records includes access to people.

In reaction to the revised guidance, many contractors are moving to more formal and structured policies and procedures around DCAA requests for information. Many contractors are also implementing automated tracking systems to document the requests and responses for information. Some contractors are also using shared access Web sites to better control and manage the process.

To summarize the revised guidance:
  • Supporting documentation should be readily available and should be provided immediately on request unless there are extenuating circumstances.

Argy

----------------------------------------
H1N1 Flu's Potential Impact on Government Contactors' Commercial Insurance Programs
 
Tim Hutton is the Vice President of Sales for USI Insurance Services LLC. He is a frequent commentator on insurance issues for government contractors. 
 
 
ArgyThe anticipated outbreak of the H1N1 flu has certainly raised personal concerns for many people.  However, Government Contractors must also be concerned and prepared for the flu's potential impact on their businesses and, working with their agent/broker, must examine the coverage that may or may not exist in their commercial insurance programs.

Since a true "outbreak" would be a first time event, it makes the various coverage scenarios difficult to predict as there is no existing case law surrounding such an event.  An "outbreak" of the H1N1 flu could have an impact on any or all of the commercial insurance policies such as these:
  • Workers' Compensation: A "disease" acquired as a result of one's work is generally covered under most WC policies, but, how would an employee prove they contracted the flu at work/as a result of their work?
  • Business Interruption: Business interruption coverage protects a business from losses due to unavoidable interruptions in their business operations, however, this is a property policy and the required coverage 'trigger' is physical damage.   Since an outbreak of flu would not be considered "physical damage" coverage may not apply.
  • General Liability: This policy includes coverage for third party claims for bodily injury (such as a 'slip and fall' injury).  However, the flu may not meet the GL policy's definition of 'bodily injury" and the GL policy may include exclusions that limit or deny coverage for bodily injury related to infectious disease and/or "organic pathogens".

Click here for rest of this article.

--------------------------------------
 
Be sure to visit and register at our blog.
 
Sincerely,

Bernard
Pleasant Valley Business Solutions
 
Microsoft Gold Partner
GAO Report Calls for Major DCAA Reform
The GAO released a highly critical report on the DCAA and its audit practices in September. In the report, "DCAA AUDITS: Widespread Problems with Audit Quality Require Significant Reform," GAO makes 17 recommendations to DOD and the DOD Inspector General (IG) to improve DCAA's management environment, audit quality, and oversight. GAO also discusses matters that Congress should consider to enhance the effectiveness and independence of DCAA contract audits.
 
Download
the report.
----------------------------------------------------
Dynamics
About Microsoft Dynamics NAV for Government Contractors

Microsoft Dynamics NAV for Government Contractors from PVBS is an ERP solution that has been designed specifically for companies that provide services and/or sell products to the Federal Government. It features:


Fed News Radio

Quick Links
 
Get a Dynamics NAV Demo
 
Register now for upcoming Microsoft Dynamics NAV seminars