July 2017 - page 2

We are in the process of bringing you synopses of a recent ASBCA decision that decided a number of issues related to DCAA’s (Defense Contract Audit Agency) audit of Technology Systems, Inc (TSI) fiscal year 2007 incurred costs, the ACO’s subsequent sustention of the DCAA findings and recommendations, and TCI’s appeal of the ACO’s decision before the ASBCA. Yesterday we discussed the issue of capitalization versus expensing costs. Bottom line on that one is you can’t use IRS regulations to justify your capitalization and depreciation practices. Today we will look at TCI’s claim for travel expenses that exceeded the JTR (Joint Travel Regulations) maximums for lodging and per diem.

Source: PNWC’s Government Contracting Update: Travel Costs in Excess of Federal Travel Regulation Maximums

We will be spending the next few days discussing an ASBCA decision involving incurred costs at Technology Systems, Inc. (TSI). DCAA issued a report on incurred cost for fiscal year 2007 noting a number of unallowable costs. The ACO (Administrative Contracting Officer) sustained many of the DCAA findings, issued a final decision, whereupon TCI appealed to the ASBCA.

Source: PNWC’s Government Contracting Update: Computer Equipment – Capitalization versus Expensing

A former employee of a U.S. Government contractor in Afghanistan pleaded guilty earlier this month to accepting over $250 thousand in kickbacks from an Afghan subcontract. What did this Government contractor employee have to do to get his $250 thousand kickback? He assisted the subcontractor in obtaining subcontracts – the classic kickback scheme.

Source: PNWC’s Government Contracting Update: Inadequate Sole-Source Justifications