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Strategic Consulting Solutions Newsletter

GovCon Advisor

February, 2013

In This Issue
SBA- Changes to Contracting Program to Help Women-Owned Bussinesses
Court Modifies Ruling Invalidating Tax Preparer Regulations
GAO Attacks Pension Costs
Mike Corkery CEO of Deltek
Deltek Time and Expense is Getting Even Better
Small Business Optimism Up
Protest Odds are Stacked in Government's Favor
Military Services Outline Their Spending Cut Plans
FASB Proposes Improvements to Accounting for Credit Losses
Oak Ridge News
Restrictions on Payments with FY 2013 DOD Funds
Additional Reading

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SCS Upcoming Events
  
Lunch and Learn Series

    

"What Makes an Accounting System Compliant"
  
* Hosted by:
Strategic Consulting Solutions At the Oak Ridge Chamber 
          February 13, 2013          
                Oak Ridge, TN
         Time: 11:30am -1:00pm

Laura Davis, President of SCS will be presenting 
  
For more information and to register for the event,
  
Take a Break to Educate Charleston Seminar
  
"Staying Competitive in an Ever Changing Contracting Environment" 
  
*Hosted by SCS:
April 23, 2013
Hilton Garden Inn
Charleston, SC
Time: 8am-12:30pm
  
For more information and to register for event,
  

 

Visit our website often for updates on these and other events.

 

www.scsconsults.com 

 

 

  

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Greetings!  

 

 

January was a busy month, but we still didn't see a lot of proposal activity or contract awards. DOE Oak Ridge did announce two major awards in January, but there are still several awards pending. In talking with various contractors, the volumes of solicitations hitting the street are also down. With the uncertainty regarding the government spending, most agencies are waiting to see where their budgets are being cut prior to making awards. A Contracting Officer told me that he had two awards he had been sitting on for several months, but would probably have to wait a little while longer. It seems to be a waiting game all the way around.

 

But January also saw some more positive things. The Tennessee Veterans Business Association held their 3rd annual conference. The awards dinner was an inspiring evening, acknowledging some veteran owned businesses. Those businesses were Oak Ridge National Lab ("Veterans Work" Award), High Resolutions, Inc. ("Bravo Zulu" Award), Smoky Mountain Cheese ("Veteran Pioneer" Award), and Relyant ("Veteran Innovator" Award). The keynote speaker for the evening was Medal of Honor Recipient, Sammy L. Davis. His story was a truly inspiring one. The conference was also a great event allowing companies to network, and providing veterans an opportunity to meet with potential employers.  

 

Last month's newsletter opened with a discussion regarding the timing of implementing a compliant accounting system. We received some great feedback on that topic. We would love to hear more opinions on both sides of the issue. To help with that discussion, we wrote a blog which can be read at http://info.scsconsults.com/blog/. Please let us know your ideas on the issue.

 

We would also love to hear more about what many of the government contractors are seeing as far as contract awards and solicitations. Please feel free to drop us a note. All responses will remain confidential in any updates.

 

  
Regards,

 

 Davis Signature

 

Laura Davis,

President

 

 

Strategic Consulting Solutions

 

      SBA Announces Changes to Contracting Program to Help Women-Owned Businesses Compete for Federal Contracts      
by Tiffani C., Community Moderator
SBA.gov  

 

Are you a woman-owned business looking to get a slice of the more than $400 billion dollar federal contracting pie?  Under the new National Defense Authorization Act of 2013, the SBA will make changes to its Women-Owned Small Business Federal Contract Program to help women-owned small businesses get more federal contracts and help the federal government meet and exceed its statutory five percent women's contracting goal.  

 

Prior to the new law, the anticipated award price of a contract for women-owned (WOSB) and economically disadvantaged women-owned small businesses (EDWOSB) could not exceed $6.5 million for manufacturing contracts and $4 million for all other contracts.  The new law removes these thresholds for WOSBs and EDWOSBs allowing them greater access to federal contracting opportunities without limitations or restrictions to the value of a contract. 

 

Read more HERE 

 

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Court Modifies Ruling Invalidating
Tax Preparer Regulations 
by Michael Cohn
Accounting Today for the Web CPA   

 

 
A federal judge has denied the Internal Revenue Service's request to suspend his January 18 ruling that struck down the IRS's tax-preparer scheme as unlawful, but made some important clarifications to his original ruling. 

  

U.S. District Court Judge James E. Boasberg ruled Friday that no tax return preparer may be required to pay testing or continuing education fees or to complete any testing or continuing education while the injunction is in place, backing up his earlier ruling (see Court Rules Tax IRS Doesn't Have Authority to Regulate Tax Preparers). The IRS had asked the judge to suspend his injunction on the tax preparer regulatory regime, arguing that it would disrupt tax season (see IRS to Appeal Ruling Barring Licensing of Tax Preparers).

 

The Institute for Justice, which had won the case on behalf of three independent tax preparers who sued to stop the IRS's Registered Tax Return Preparer mandatory testing and continuing education regulatory regime, filed a legal brief countering the IRS's arguments (see Tax Preparers Contest IRS Legal Ruling). In Boasberg's latest ruling in the case Friday, he denied the IRS's motion for a stay, asking, "[W]hy should tax-return preparers continue to pay into a system the Court has found unlawful?"

 

Read more HERE 

 

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 GAO Attacks Pension Costs
Darrell J. Oyer & Company Newsletter
January 31, 2013
www.darrelloyerco.com 

 

  

 A GAO report has basically attacked (with DOD concurrence) the amount of pension costs paid by the government under current FAR and CAS rules. During the CAS Board pension harmonization with the Pension Reform Act, DOD generally declined to accept pension costs based on legitimately anticipated pension costs. The pension harmonization resulted in the government paying some, but still not all, of contractor actual pension costs.

 

The report was generated by a request from Congress and required over 12 months to reach conclusions such as "contractors recover pension costs as an indirect cost."  (Ed. Note: Maybe I should just send Congress a copy of my book and the GAO could do something productive.)

  

GAO recommended that DOD:

 

1. Assign a DOD office specific oversight of the value of benefits earned, not just actuarial assumptions.

 

2. Provide guidance on measuring the value of pension benefits earned in a given year to get a complete picture of total compensation for contractor employees.

 

3. Provide guidance to DCAA and DCMA on the discount rates acceptable for contractors to use in calculating pension costs for forward pricing purposes.  [Ed. Note: These are the interest rates set by CAS and ERISA...apparently GAO does not like the CAS/ERISA rules.]

 

Read article and GAO report HERE 

 

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Mike Corkery Named CEO of Deltek
  
Deltek, Inc., the leading global provider of enterprise software and information solutions for professional services firms and government contractors, announced on February 6, 2013, that Mike Corkery has been named Deltek's new chief executive officer (CEO) by the Company's board of directors. Mike was named acting CEO in December 2012 and has been Deltek's chief financial officer (CFO) since joining the company in January 2010. Deltek is a private company owned by middle market private equity firm Thoma Bravo, LLC.
 
Full press release HERE  
  
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 Time and Expense is Getting Even Better-Preview Environment Now Available! 
www.deltekfirstessentials.com 

 

 

 

Deltek Time & Expense is getting a whole lot better as a result of a fresh new user interface and enhanced workflow capabilities. Users will find it a breeze to complete and process their expense reports.

 

To take advantage of the many great new features when they are activated, you'll want to be sure your firm is fully prepared.

 

The new features will include:

  • Improved Expense Report User Experience
  • Improved Expense Authorization User Interface
  • Improved Expense Workflow Capabilities
  • User-defined Attachments
  • Improved Lodging Wizard
  • Enhanced Multiple Day Meal Wizard
  • Support for Additional Web Browsers Support

 

The live upgrade is currently scheduled to begin on Friday February 22 at 8:00 PM EST and will conclude at 6:00 AM EST Monday February 25. Deltek First will be unavailable during the upgrade window.

 

 More on the Deltek upgrade HERE

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 Small business optimism up, but concerns about healthcare and taxes persist
The Washington Post
  

Small business owners were more optimistic about the economic environment than they were in November, according to a new survey - though healthcare costs and small business taxes were still major concerns.

 

The quarterly Wells Fargo/Gallup Small Business Index, which attempts to quantify optimism based on owners' responses about their business' present and future performance, increased to 9 in January, up 20 points from -11 in November following the election. The index ranges from -400 to 400 - a score of zero reflects neither optimism nor pessimism. Pre-recession scores were at or around 100.

 

A recent report by the National Federation of Independent Business owners also found an increase in small business optimism since November.

 

Fifty-four percent of small business owners said healthcare costs were a concern, and 53 percent said the same of small business taxes, the Wells Fargo/Gallup survey found. Other choices for issues included the price of energy, government regulations and the federal debt ceiling, but fewer business owners reported these as concerns.

 

More HERE

   

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  Protest Odds are Stacked in Government's Favor

by Lee Doughert                                  

 Washington Business Journal                           

 

  

 

 

 

Protesting contractor: McKissack-URS Partners, Joint Venture

Contracting agency: Department of Labor

Protest issue: Whether the winning contractor had an unfair advantage

Decision: Denied by Government Accountability Office, Jan. 9, 2013.

 

Post-Mortem: The sordid history of this procurement begins in 2005 when the DOL initially announced the requirements. That first procurement was cancelled following a pre-award bid protest, presumably because the protest established that the solicitation was flawed. In 2008 the DOL again attempted to solicit for the work which was again protested, this time because the solicitation was not being run according to the right Federal Acquisition Regulation procedure. The procurement was again cancelled. DOL tried again in October 2009 and August 2010 - only to have the solicitation protested and canceled both times.

 

The most recent procurement attempt began in October of 2011. The protestors alleged that Parsons had an unfair advantage because they had a consultant working for them who was a retired DOL contracting official who had served as an Evaluation Board Official for the failed 2008 procurement. Although federal acquisitions regulations say that agencies should avoid even the appearance of impropriety, that is not the standard the GAO applies. The GAO requires credible evidence of impropriety, which is impossible to get in the bid protest process because the GAO is not a court and does not allow for discovery. In this case the GAO found that DOL's investigation of the allegations was reasonable and the contracting officer's finding was proper.

 

More on protest HERE 
 

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Military services outline their spending cut plans

 by Tom Vanden Brook and Susan Davis 

USA Today, WBIR.com Partner
  

 

WASHINGTON - Military services have outlined a series of spending cuts that will reduce planned raises for military personnel, curtail aircraft maintenance, delay new equipment for soldiers and the movements of aircraft carriers around the globe, documents obtained by USA TODAY show.

 

These and other cuts will go into effect unless the White House and Congress reach a deal on long-term spending to avoid the process known as sequestration, which calls for $1.2 trillion in spending cuts over the next decade. The cuts will start March 1 if no deal is reached.

 

The proposed cuts, according to Pentagon officials and military budget documents, include: A proposed 1% pay raise for servicemembers in 2014 instead of the planned 1.7%, Pentagon spokesman George Little said. Reductions in Air Force spending on aircraft maintenance by one-third, the elimination of support for popular military air shows and reduced spending on support for more than 30 weapons systems.

 

Read more HERE  

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FASB Proposes Improvements to Accounting for Credit Losses on Financial Assets
 News Release
 www.fasb.org

 

 
The Financial Accounting Standards Board (FASB) today issued for public comment its proposal to improve financial reporting about expected credit losses on loans and other financial assets held by banks, financial institutions, and other public and private organizations. Proposed Accounting Standards Update, Financial Instruments-Credit Losses (Subtopic 825-15), proposes a new accounting model intended to require more timely recognition of credit losses, while also providing additional transparency about credit risk. Stakeholders are asked to review and provide comments on the proposal by April 30, 2013.

"The global financial crisis highlighted the need for improvements in the accounting for credit losses on loans and other debt instruments held as investments," stated FASB Chairman Leslie F. Seidman. "The FASB's proposed model would require more timely recognition of expected credit losses and more transparent information about the reasons for any changes in those estimates. We invite comments from stakeholders on both the usefulness of the resulting information and the operationality of the proposed approach."

The FASB's proposed model would utilize a single "expected credit loss" measurement objective for the recognition of credit losses, replacing the multiple existing impairment models in U.S. GAAP, which generally require that a loss be "incurred" before it is recognized. Under the proposal, management would be required to estimate the cash flows that it does not expect to collect, using all available information, including historical experience and reasonable and supportable forecasts about the future. 

 

Read more HERE

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* Oak Ridge News *
  
 
 
 B&W files protest of Y-12 contract decision
by Darrell Richardson/Staff
OakRidger.com
  

 

The Babcock & Wilcox Co.- led team of Nuclear Production Partners LLC has filed a protest against the National Nuclear Security Administration's recent awarding of a management and operating contract for the U.S. Department of Energy's Y-12 nuclear weapons site in Oak Ridge and the Pantex Plant near Amarillo, Texas. 

 

A Jan. 18 B&W release states Nuclear Production Partners was notified by NNSA 10 days earlier that it wasn't awarded the contract. 

 

"NP2 filed the protest in accordance with federal regulations ... (and) the U.S. Government Accountability Office must rule on the protest within 100 days of filing," the release stated. "In the interim, the incumbent B&W-led LLCs will continue to safely and securely manage the Pantex and Y-12 facilities under their current contracts." 

 

Last week, it was reported that a team headed by Bechtel National Inc. and Lockheed Martin Services Inc. was selected to manage Y-12 and Pantex - two of the nation's key nuclear weapons facilities. The NNSA touted the potential savings to the government by consolidating management of the two production plants ... even though they are in different states and 1,000 miles apart.  More HERE  

 

 
DOE security contract changes hands  

by Beverly Majors/Staff

OakRidger.com

  

The U.S. Department of Energy's Oak Ridge Office has awarded an $181,672,893 protective force services contract to National Strategic Protective Services LLC (NSPS).

 

DOE's decision takes the contract away from longtime security provider WSI-Oak Ridge, formerly known as Wackenhut, which came under scrutiny after a Y-12 National Security Complex breach in July 2012.

 

"We are pleased to welcome NSPS as a part of the Department of Energy team in Oak Ridge," Larry Kelly, Oak Ridge Office manager, stated in a Thursday release. "We evaluated the proposals and it was clear to us that NSPS is the right company for this difficult and important job."

 

In a prepared statement, WSI-Oak Ridge officials said Thursday that "WSI-Oak Ridge is disappointed we were not awarded the Department of Energy's Protective Force Contract to provide protective services to the Oak Ridge National Laboratory, the East Tennessee Technology Park and the Federal Office Building Complex."   More HERE 

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   Restrictions on Payments with FY 2013 DOD Funds 
Darrell J. Oyer & Company Newsletter
January 31, 2013
www.darrelloyerco.com 

 

 

DOD may not use 2013 funds to enter into contracts with firms that have unpaid federal taxes or federal felony convictions. Contracting officers must include provisions to this effect in all solicitations that will use funds made available by the FY 2013 Continuing Appropriations Resolution (Pub. L. No. 112-175), including solicitations for commercial items.

 

Specifically, DOD may not contract with a corporation that has any unpaid federal tax liability that has been assessed, for which all judicial and administrative remedies have been exhausted or lapsed and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability, where the awarding agency is aware of the liability. DOD also may not contract with a corporation that was convicted of a federal felony in the preceding 24 months and where the awarding agency is aware of the conviction. Contracting officers may make an award despite these restrictions if the DOD suspension and debarment official has considered suspension or debarment of the corporation and has made a written determination that these actions are not necessary to protect the government's interests.

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About Strategic Consulting Solutions

 

Strategic Consulting Solutions is the leading provider of compliant solutions to government contractors. SCS specializes in Deltek software sales and implementation, complete accounting outsourcing, contract compliance support, contract administration and general accounting support. Whether you are new to contracting, or a seasoned contractor managing multiple, complex projects, we can help you to understand government cost accounting requirements, implement systems and processes to achieve compliance, assist you through DCAA audits, and help you accurately manage and streamline your business processes. Our team consists of professionals with extensive finance and government contracting experience. We understand the complexities of government contracting and strive to help our clients find the appropriate solutions to all of their contracting issues.

 
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