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IRS Revives Form to Report Nonemployee Compensation

Employers who pay subcontractors nonemployee compensation should be aware of a change coming after 2019. The Internal Revenue Service (IRS) is bringing back a form last used in the early 1980s, 2020 Form 1099-NEC, Nonemployee Compensation. The IRS released a draft version of the form, which will be used to report compensation paid to contractors […]

The Contractor Purchasing System Review (CPSR) – What You Should Know

An adequate contractor purchasing system (CPSR) is one designed to ensure that purchases are made at fair and reasonable prices and in compliance with the applicable contract terms, regulations and public laws. The first thing a contractor needs to understand about contractor purchasing systems is what constitutes a purchasing system. Many contractors think a purchasing […]

A Contractor’s Guide to Purchasing Commercial Items

The Federal Acquisition Streamlining Act (FASA), enacted in October of 1994, codified the government’s preference for purchasing commercial items. In 1995, Federal Acquisition Regulation (FAR) Part 12, “Acquisition of Commercial Items,” was significantly revised to incorporate the government’s commercial item preference into the FAR. In his article “A Contractor’s Guide to Purchasing Commercial Items,” Tom […]
October 26, 2017

Do You Know Your Lien Rights?

Signing lien waivers is customary in the construction industry, but are you aware of the protections you’re waiving and the potential consequences of nonpayment? Mechanic’s liens help contractors who supply labor or materials for construction work to be paid for the job performed. In most cases, the lien prevents the owner from selling or transferring […]
August 5, 2016
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  • Liang Wu

What Federal Contractors Need to Know about Self Insurance (Part 3)

As insurance premiums continue to rise rapidly, many contractors are opting to self-insure. While this may seem like a grand idea, there are stipulations that should be carefully studied and applied prior to implementing such a plan. Part one of this blog series advised that, in order to maintain a self-insurance plan, a contractor must first provide […]

How to Handle Offsetting Multiple Changes to Cost Accounting Practices

Often times, contractors may experience a cost accounting practice change or even several simultaneously, which will impact multiple facets of the business including the Cost Accounting Standards (CAS) covered federal contracts.  The accounting changes often impact contracts oppositely, that being said, one may increase the costs owed by the Government and one may decrease the […]

Recent Update to DCAA’s ICE Model

DCAA Recently updated Supplemental C on their ICE (Incurred Cost Electronic) model.  This new update is to clarify what information is needed on the Schedule.  No computations or functional changes were made. The Supplemental C schedule is an optional schedule, not required at the time of submission in order to have an adequate submission.  If […]

What Federal Contractors Need to Know about Self-Insurance – Part 2

As insurance premiums continue to rise rapidly, many contractors are opting to self-insure. While this may seem like a grand idea, there are stipulations that should be carefully studied and applied prior to implementing such a plan. part one of this blog series advised that, in order to maintain a self-insurance plan, a contractor must […]

GSA to Standardize Part Number Data on GSA Schedules

GSA is standardizing part number data on GSA schedules in order to provide higher quality, more meaningful, and complete descriptive data to customers while enhancing competition and saving taxpayer dollars. GSA is now requiring a Manufacturer Part Number (MPN) for each awarded product, as well as a Universal Product Code Type A (UPC-A) for each […]

What Federal Contractors Need to Know about Self Insurance

Contractors often disclose the cost savings of self-insured plans with excitement, but buyer beware. Most contractors are surprised when I don’t immediately commend them on cost savings and instead ask them, “Did you know there are ’special‘ compliance requirements for self-insurance plans and failure to meet the compliance requirements makes the cost unallowable?” Most self-insurance […]