Professional Services Council (PSC) recently invited Sherry Kobus, DCAA (Defense Contract Audit Agency) Small Business Program Manager to speak at their seminar held on October 9, 2015. Sherry spoke to both small and large government contractors regarding a variety of topics that impact small businesses. Some highlights from Sherry’s presentation are:
- Provisional Billing Rates need to be prepared and submitted timely so that DCAA will not recommend rates that are too low. Also that DCAA is only approving provisional billing rates for those who have prime contracts with the Federal Government.
- DCAA will only perform Adequate Accounting System (SF1408) at the request of DCMA (Defense Contract Management Agency; contractor cannot contact DCAA to request this service. She also clarified that no software is automatically DCAA approved.
- Incurred Cost Submissions are due from contractors at six (6) months from their year-end and that the six (6) years statute of limitations only begins when the Federal Government knew or should have known all the facts.
- DCAA has been more involved in public voucher reviews to increase real time reviews and how often will be determined based on DCAA’s risked based assessment and if major or non-major contractor.
- Sherry spoke about travel costs and that they must be in compliance with FAR 31.205-46(b) and that contractors must have adequate detailed supporting documentation to support the costs incurred.
- Executive Compensation is no longer restricted to the top five (5) executives of the company. Per the new rule its $487,000 for all employees as of June 24, 2014.