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Welcome back to the Cost Corner, where we provide practical insight into the complex cost and pricing requirements that apply to Government Contractors. We just completed two articles on the Truth in Negotiations Act (TINA) [1] and, before that, two articles on Defense Contract Audit Agency (DCAA) audits.
Labor is among the largest contract cost recorded to Governmentcontracts. In many cases, they are the most significant; therefore, the Government invests significant efforts to monitoring these costs and auditing them. The following are subject matter areas that represent critical timekeeping internalcontrols.
And government contractors will sometimes participate in the federal grant space, either as contractors or as recipients or sub recipients. And increasingly, the federal grant in assistance space is becoming subject to more requirements that start to look like governmentcontracts. So there’s a lot of money.
8] The Government typically analyzes reasonableness by individual employee for owners, executives, and other “high risk compensation categories” and by job class for other employees. 31] Thus, implementing and documenting adequate internalcontrols for determining compensation can significantly reduce audit risk. NASABCA No.
Requirements for Fixed Amount Awards and Subawards Section 200.201(b)(1) states that fixed amount awards must be negotiated using the cost principles (or other pricing information) as a guide, and may be used if accurate cost, historical, or unit pricing data is available to establish a reasonable estimate of actual costs.
Singh possesses more than 28 years of progressive experience supporting all aspects of information technology with extensive experience in IT system operation and maintenance, program management, customer service enhancement, cybersecurity, scheduling, budgeting, contractnegotiation, and recruitment and personnel management.
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