the basics beverly arviso, cpa, cpcm, cfcm arviso, inc. beverly@arvisoinc 757-373-9536
DESCRIPTION
THE BASICS Beverly Arviso, CPA, CPCM, CFCM Arviso, Inc. [email protected] 757-373-9536. Course Objectives. The Basics Contract Administration Infrastructure Questions and Answers. The Basics. Taxpayer ID Number (TIN) IRS – 1-800-829-1040 Dunn & Bradstreet Number (DUNS) - PowerPoint PPT PresentationTRANSCRIPT
Course Objectives
The Basics Contract Administration Infrastructure Questions and Answers
© 2011 Arviso, Inc.
Taxpayer ID Number (TIN) IRS – 1-800-829-1040
Dunn & Bradstreet Number (DUNS) 1-800-333-0505 www.dnb.com
Register in the Central Contractor Registration www.ccr.gov
On-line Representations and Certifications Application (ORCA) https://orca.bpn.gov
The Basics
© 2011 Arviso, Inc.
Cage Code www.dlis.dla.mil
North American Industry Classification System (NAICS) http://www.census.gov/eos/www/naics/
The Basics
© 2011 Arviso, Inc.
Federal Acquisition System Federal Business Opportunities
https://www.fbo.gov/
Federal Acquisition Regulation (FAR)www.acquisition.gov
Agency Supplements Except as authorized by law, agency
supplements shall not conflict with or be inconsistent with the FAR
Contract Administration
© 2011 Arviso, Inc.
Who acts for the Government? Contract Specialist Contracting Officers
Warrants via SF1402Only person authorized to enter into contracts on behalf of the Government
Administrative Contracting Officer (ACO), FAR 42.302
Contracting Officer’s RepresentativesCOR TrainingCOR Assignment Letter
Contract Administration
© 2011 Arviso, Inc.
Most contract types are classified by how they are priced
The objective to be achieved when negotiating contracts type and price is to agree on a type and price that will result in reasonable contractor risk while providing the contractor with the greatest incentive for efficient and economical performance
Contract Administration
© 2011 Arviso, Inc.
Impact of Contract Types The amount of government financial review and
surveillance is determined by the type of contract awarded
The government will have greater interest in the company’s accounting practices where incurred costs are the primary factor in establishing the amount the contracting agency ultimately pays for the work performed
When the final contract price is unaffected by actual cost or performance, government procurement policy requires considerably less review and surveillance
Contract Administration
© 2011 Arviso, Inc.
Contract Types Firm Fixed Price (FFP) Time-and-Materials (T&M) Cost Reimbursement Indefinite Delivery/Indefinite Quantity (IDIQ)
Delivery vs. Task Order
Government Wide Acquisition Contracts (GWACs) Multiple Award Contracts
Contract Administration
© 2011 Arviso, Inc.
RFP Process Identification of a need
Site Surveys Industry Days Draft RFPs Sources Sought
Bid/No Bid Decision Identify Team
Internal and External Parties Teaming Agreements Non-Disclosure Agreements
Release of RFP Begin writing BEFORE RFP is released….how?
Contract Administration
© 2011 Arviso, Inc.
Read the solicitation (and read it again and again) Determine Contract Type Schedule B, Supplies or Services and Prices/Cost Schedule C, Statement of Work Schedule L, Instructions, Conditions, and Notices to
Offerors Schedule M, Evaluation Factors for Award
Contract Administration
© 2011 Arviso, Inc.
Contract Award Meeting Can vary by size and complexity of
procurement Corporate policy defines
Attendees (including teaming partners)Roles and Responsibilities of Attendees
Contract Administration
© 2011 Arviso, Inc.
Contract Award Meeting Preparation and Review of a Contract Brief
Sets forth job charging requirementsSets forth Billing and Payment Requirements
Defense Finance and Accounting Services (DFAS) Wide Area Workflow (WAWF) Sample Invoice can be found at www.dcaa.mil
Set forth any pertinent clauses or special terms Small Business Set Aside Requirements Publicity notification requirements 75% notification Fee withholds
Contract Administration
© 2011 Arviso, Inc.
File Documentation RFP Proposals (All Volumes) Teaming Agreements/Non-Disclosure Agreements Original contract and all agreements Modifications Task and Delivery Orders and all Modifications Correspondence Update contract brief
Contract Administration
© 2011 Arviso, Inc.
Changes Inside or outside the scope of work
Work at Risk Tracking and approval process Subcontractors?
Contract Close-out Incurred Cost Submissions
Sample can be found at www.dcaa.mil Final Invoice
Sample can be found at www.dcaa.mil Release of Claims and Assignment of Refunds,
Rebates, and Credits
Contract Administration
© 2011 Arviso, Inc.
Basic Infrastructure
Accounting System Polices and Procedures General Ledger Design Invoicing Project Budgeting and Reporting
Timekeeping Policies and ProceduresTravel and Expense Reimbursement
© 2011 Arviso, Inc.
Accounting System
Segregation of Costs Pre-Award Accounting System Survey (SF 1408)
Responsibility Determination per FAR Part 9
System must be able to track costs and allocate to projects
Direct vs. Indirect Cost (FAR Part 31)Clear distinction on chart of accounts
Direct costs are recorded on a job by job basis
Indirect costs are calculated at the corporate level and allocated to the jobs
© 2011 Arviso, Inc.
Accounting System
Segregation of Costs Development of Indirect Rates (FAR Part 31)
Cost Pool/Allocation Base = Indirect Rate
Document the pools and base
Standard 3 tiered indirect rate structure Fringe Overhead G&A
Unallowable Costs (FAR Part 31)
© 2011 Arviso, Inc.
Accounting System
Billing and Collections Procedures and Controls Contract Review/Preparation of Contract Briefs
Invoice Preparation Generated from accounting system books and records
Invoice Review by Program Manager
Payment monitoring
Budgeting and Reporting Corporate Indirect Rate Budget
Project Budgets
Reporting Budget vs. Actual
© 2011 Arviso, Inc.
Timekeeping Policies and Procedures
Manual or electronic Record all hours worked Time should be entered daily, in ink, for all
employees Job Number and Project Name should be pre-
printed if possible Charge Numbers should be provided by
Supervisor not accounting department Vacation, holiday, sickness, and excused time
should be recorded Annual Training Proof of Process Compliance
© 2011 Arviso, Inc.
Defense Contract Audit Agency (DCAA) Types of Audits
Accounting system Financial capability Pre-award Timekeeping Billing Incurred Cost
Contract Accounting
© 2011 Arviso, Inc.
DCAA Resources www.dcaa.mil
Information for Contractor’s Guide DCAA Audit Programs DCAA Contract Audit Manual
Contract Accounting
© 2011 Arviso, Inc.
Beverly Arviso, CPA, CPCM, CFCM
President, Arviso, Inc.
757-373-9536
Questions
© 2011 Arviso, Inc.
Questions