PNWC’s Government Contracting Update - page 38

The Association of Certified Fraud Examiners (ACFE) reported the results of a recent study that revealed the typical organization loses a median of five percent of revenues annually. The same study found that while both large and small companies fall victim to occupational fraud, companies with fewer than 100 employees are particularly vulnerable compared to their larger counterparts. Why is this? Essentially because larger companies have better internal controls and more likely to have anti-fraud practices in place – such as hotlines, employee fraud training and internal audit departments.

Source: PNWC’s Government Contracting Update: Fraud in the Purchasing Department

Since 2011, the Defense Contract Audit Agency has published an annual report to Congress. This report was mandated by an earlier NDAA (National Defense Authorization Act) and codified in 10 USC 2313a(a)(2). We’ve reported on these reports about the time they were issued (see the latest discussion: DCAA’s Fiscal Year 2016 Report to Congress).

Source: PNWC’s Government Contracting Update: 2018 NDAA – Changes to DCAA’s Annual Report to Congress

Unless you’re a very large contractor, you may not have heard of “should-cost” reviews. Should-cost reviews are a specialized form of cost analysis. They differ from traditional evaluation methods in that they don’t assume that historical costs reflect efficient and economical operation. Instead, should-cost reviews evaluate the economy and efficiency of the contractor’s existing work force, methods, materials, equipment, real property, operating systems, and management.

Source: PNWC’s Government Contracting Update: Have Contractor’s Been Complaining About DCMA’s “Should-Cost” Reviews?

Yesterday we began a four-part series on provisions in the Senate version of the fiscal year 2018 National Defense Authorization Act. (Click here to read Part 1 concerning the provision that might require large contractors to reimburse the Department of Defense for its cost of administering bid protests).

Source: PNWC’s Government Contracting Update: 2018 NDAA – Additional Work for DCAA?

Both the House and Senate have passed their own versions of the 2018 National Defense Authorization Act (NDAA). Thee are, as always, differences in the two bills which will now have to be worked out in conference committee. The provision in the House version requiring the Defense Department to contract out 25 percent of its incurred cost audits in lieu of performing them in-house by DCAA (Defense Contract Audit Agency) is not in the Senate version (see 2018 NDAA Passes House). For the rest of this week, we will examine a few provisions that appear in the Senate version that are not in the House version.

Source: PNWC’s Government Contracting Update: Large Contractors May Need to Reimburse the Defense Department for the Cost of Bid Protests

Earlier today the House passed the fiscal year 2018 National Defense Authorization Act (NDAA) by a wide margin; 344-81. Now, the Senate needs to act on its version. The House version calls for $696 billion in spending while the Senate version sits around $700 billion. Both spending proposals exceed the President’s $603 billion defense plan.

Source: PNWC’s Government Contracting Update: 2018 NDAA Passes House – Now On to the Senate

No one has a good count on the number of Government contractors. By one estimate, over 50,000 companies contract with the Department of Defense and there are many Governmental agencies besides DoD. Whatever the number, there are a lot of Government contractors but relatively few of them have had to go through the process of actually negotiating a contract price under FAR Part 15 procedures, Contracting by Negotiations.

Source: PNWC’s Government Contracting Update: Be Prepared When You Go In To Negotiations With The Government

Everyone has heard the line that goes like this: Hi, we’re from the Government and we’re here to help”. Its a humorous line because its antithetical to what really happens when the auditor comes knocking. Its unlikely that any contractor will get help from a DCAA auditor these days because the Agency takes the notion of being independent very seriously. That is not to say however that DCAA won’t help – you just have to find the right person. It won’t be an auditor but the Agency has a few non-audit staff dedicated to assisting small businesses.

Source: PNWC’s Government Contracting Update: DCAA’s Help for Small Business Contractors

All Native Group (ANG) is the federal contracting division of Ho-Chunk, Inc, the economic development corporation of the Winnebago Tribe of Nebraska. Besides being tribally owned, ANG carries SBA 8(a) certifiication, small disadvantaged, and a HUBZone status. They provide a wide range of services to the Government including staff augmentation, editorial services, IT, logistics, and professional services. One of ANG’s contracts is with the Department of State (DoS) to provide training at the State Departments Diplomatic Security Interim Training Facility in Summit Point, West Virginia.

Source: PNWC’s Government Contracting Update: Poor Internal Controls Leads to Theft of Government Property

The Navy issued a RFP (Request for Proposal) for engineering and logistics-support services for naval surveillance radar. Valkyrie Enterprises submitted a bid but it was thrown out (i.e. eliminated from the competition) by the Navy as noncompliant with the solicitation requirements. Valkyrie appealed to the GAO (aka Comptroller General). You see, the solicitation required a “senior acquisition manager” (SAM) with a minimum of 12 years of experience in acquisition management associated with combat systems. Valkyrie’s proposed SAM reflected only 11 years of acquisition management experience, not the 12 years required by the solicitation.

Source: PNWC’s Government Contracting Update: Company Loses Chance for $200 Million Contract due to Its Clerical Error