Cherry Bekaert: Government Contractors Guidance

Listen to Eric Poppe, Senior Manager in Cherry Bekaert’s Government Contracting practice and Rich Wilkinson, Director of Product Marketing at Unanet discuss the importance of indirect rates. In part two we talk about monitoring indirect rates, why it is important, best practices in calculating indirect rates and why it is a great tool for project management.

Monitor the rates:

1. If your accounting system can calculate your rates, do it monthly at a minimum 
2. Don’t be alarmed when they fluctuate significantly early in the fiscal year
3. Track the trends in the rates and pool costs

Make course corrections as required:

1. If the rates aren’t tracking to the budget, ask why
2. Fix the errant cost or change the estimate in the budget
3. Adjust your target rates used for project management
4. If the new target rates are materially different, submit a request for approval of revised rates
5. Bill the rate differential in the next billing cycle after approval.
6. Keep monitoring (rinse, repeat as necessary)

This part of the cycle repeats during the year to keep the billing/target/pricing rates as close to actual as feasible. Rate variance can be a killer to profitability and in the next segment, we’ll discuss how to keep it to a minimum.

If you haven’t already, catch up on part one of the series where we discuss why government contracting firms need indirect rates and where and when to start:

Indirect Rates – More than Just a Math Exercise: Part One

Listen to Eric Poppe, a Senior Manager in Cherry Bekaert’s Government Contracting practice, and Brendan Halloran, also a Senior Manager in the Firm’s Government Contracting practice who previously spent 10 years at the Defense Contract Management Agency (DCMA), including 7 years as a Divisional Administrative Contracting Officer (DACO), discuss contractor Business Systems requirements and trends they are currently seeing for Business Systems in large Request for Proposals and solicitations. 

The Defense Contract Audit Agency (DCAA) has a renewed focus on Accounting, MMAS and Estimating systems and is getting back into the program audit cycle with a focus on completing Business Systems audits. Contractors need to think ahead to understand what the criteria are and prioritize the Systems that apply to their business. By working towards being prepared for a potential audit or review, contractors can avoid surprises or scrambling to get a system reviewed for an RFP requirement.

Our government contracting consulting professionals have worked extensively in the Federal contract arena and are well versed in business systems requirements and complex control environments. We guide contractors in developing and maintaining compliant business systems, perform assessments against the criteria, provide audit support, and prepare contractors for audits or reviews by DCAA, DCMA or other cognizant agencies.  

Join Cherry Bekaert’s Government Contractor Services Group for part two of our new podcast series discussing various aspects of the Small Business Administration’s (SBA) 8(a) Business Development Program, created to help small disadvantaged businesses wanting to do business with the Federal government gain a foothold in Federal government contracting. 

In this second episode, Susan Moser, Partner and Leader of Cherry Bekaert’s Government Contracting practice and John Ure, Tax Partner and member of the Firm’s GovCon practice discuss:

• What you will need to prepare for the 8(a) application process
• The five-part application – eligibility, ownership requirements, controls, potential for success and character, an overview and guidance on each section of the application, the requirements and what information and documents will need to be provided
• SBA approval – top 10 reasons why companies do not get approved

If you haven’t already, catch up on part one of the series where we discuss the overall SBA 8(a) program, eligibility for getting into the program, what is needed and what is required:

Part I: The SBA 8(a) Business Development Program – What Is It and What Are the Requirements?

In future segments, we will discuss what happens when you get certified, winning sole source and competitive contracts and the All Small Mentor Protégé Program.

Our Government Contractor Services group has an in-depth understanding of the 8(a) program and advises a number of 8(a) government contractors through each step of the process to add value and anticipate ongoing opportunities. From the initial important decisions made in becoming an 8(a), to the first contract, to how the company is growing throughout the life of the program.

Join Cherry Bekaert, a Registered Practitioner Organization (“RPO”) and Candidate Certified Third-Party Assessment Organizations (C3PAO), for part five of our podcast series discussing the various elements of the Department of Defense’s (“DoD”) Cybersecurity Maturity Model Certification (“CMMC”) program.

Neal Beggan, a Principal in Cherry Bekaert’s Information Assurance & Cybersecurity Practice, selected as one of the first Provisional Assessors nationwide by the CMMC Accreditation Body, leads the series along with Eric Poppe from the Firm’s Government Contractor Services Group, to provide contractors with the latest information on CMMC and navigating its impact on the government contracting community.

In part five of the series, Neal and Eric discuss the current status of CMMC, including

• Is the rule final yet?
• How does it relate to the Executive Order?
• Recent News Articles and changes at the DoD
• Impact on small and medium businesses
• What should I be doing now?

If you haven’t already, catch up on the series:

• Part 4: How to Prepare for a CMMC C3PAO Assessment for Certification
• Part 3: What to Expect in an Upcoming CMMC C3PAO Assessment & How to Prepare
• Part 2: CMMC and the DFARS Clause
• Part 1: Current State of CMMC

Join Cherry Bekaert’s Government Contractor Services Group for part one of a new podcast series discussing various aspects of the Small Business Administration’s (SBA) 8(a) Business Development Program. The 8(a) program is a business assistance program that was created to help small disadvantaged businesses wanting to do business with the Federal government gain a foothold in Federal government contracting.

Our Government Contractor Services group has an in-depth understanding of the 8(a) program and advises a number of 8(a) government contractors through each step of the process to add value and anticipate ongoing opportunities. From the initial important decisions made in becoming an 8(a), to the first contract, to how the company is growing throughout the life of the program.

In this first episode, Susan Moser, Partner and Leader of Cherry Bekaert’s Government Contracting practice and John Ure, Tax Partner and member of the Firm’s GovCon practice discuss the basics of the 8(a) program:

• What is the 8(a) program
• What are the opportunities, and
• What are the requirements to apply for the 8(a) program 

In future segments, we will discuss the requirements to stay in the program, winning sole source and competitive contracts and how to be successful.

Listen to Eric Poppe, Senior Manager in Cherry Bekaert’s Government Contracting practice and Rich Wilkinson, Director of Product Marketing at Unanet discuss the importance of indirect rates. Indirect rates are more than just a math exercise. Having rates isn’t the objective. It’s having something you can use to figure out what your costs are. This is part one of a four-part series on indirect rates that Cherry Bekaert and Unanet will explore. In this episode we discuss:

Why do government contracting firms need indirect rates?

1. For pricing, estimating and forecasting
2. For managing project costs to the total cost line
3. If the firm has cost-type contracts, for billing the costs
4. If the firm has T&M contracts with G&A applied to non-labor, for billing the non-labor costs
5. If the firm has fixed price contracts with potential for increase(s) in scope, for pricing/negotiating the mods

Where do you start?

1. Well before the beginning of the fiscal year, prepare a budget for the coming year
2. Develop indirect rates from that budget
3. Submit the rates and support to your cognizant Administrative Contracting Officer (ACO) or the Defense Contract Audit Agency (DCAA)

Once approved by the government, use the rates for managing projects and forecasting costs and revenue (internal) and for billing and pricing (external).

But that’s not the end. Developing rates and getting them approved is just the beginning of the cycle. In the next segment, we will discuss monitoring your rates during the year and what to do if your indirect rates aren’t what you thought they would be.

President Biden signed an Executive Order (“EO”) on May 12th aimed at improving and preparing for cybersecurity defenses for public and private sector companies. The EO is aimed at improving protective measures to federal networks, information-sharing between the U.S. government and the private sector on cyber issues and the collective ability to respond when incidents occur. The EO addresses initiatives and directives in many areas, which Cherry Bekaert summarized in a recent alert.

Susan Moser, leader of Cherry Bekaert’s Government Contractor Services Group, John Ford, a senior consultant in the Firm’s GovCon Group and Neal Beggan, a Principal in Cherry Bekaert’s Information Assurance & Cybersecurity Practice discuss the impacts and timing of the EO, including a general discussion on the authority of Executive Orders, how the EO impacts the Department of Defense’s (“DoD”) Cybersecurity Maturity Model Certification (“CMMC”) program, and what companies should be doing now to protect their systems and data.

Cherry Bekaert will continue to keep contractors updated in future podcasts on the EO and CMMC as circumstances and timelines change. 

Never has the protection of data been more important, and the threats against it more present. Cyber breaches not only affect an organization’s bottom line but can negatively impact its reputation and brand. We help strengthen your organization with a comprehensive program of security technology, services and insurance. We customize your solution based on your specific needs and risks, as well as your line of business, industry and budget.

Recent Court Cases that Impact Government Contractors: Pre-Award Bid Protests, Monitoring Compliance with Small Business Set-Aside Programs and Vetting Potential Business Partners

Eric Poppe, a senior manager in Cherry Bekaert’s Government Contracting Industry practice and Ryan Bradel, a partner and leader of Ward & Berry’s Government Contracts practice, discuss recent court cases that impact government contractors. Eric & Ryan walk through cases pertaining to protests and solicitations requirements, discussing each ruling, its impacts and lessons learned, so that contractors can gain a better understanding of the rulings and how to better navigate these situations.

Listen to Susan Moser, leader of Cherry Bekaert’s Government Contractor Services practice and Brendan Halloran, a new member of our team discuss best practices when working with Contracting Officers, including what contractors may be surprised to know. 

Before to joining Cherry Bekaert, Brendan spent 10 years at the Defense Contract Management Agency (DCMA) as a Divisional Administrative Contracting Officer (DACO) and supervisory contract specialist focused on cost and pricing. He was the Cognizant Federal Agency Official for multiple major defense contractor business divisions, responsible for ensuring compliance with FAR, Defense Federal Acquisition Regulation Supplement and CAS, including business systems requirements, and brings a unique perspective to the Firm’s government contracting advisory team.

Part IV: How to Prepare for a CMMC C3PAO Assessment for Certification

Join Cherry Bekaert, a Registered Practitioner Organization (“RPO”) and one of the first Certified Third-Party Assessment Organizations (C3PAO) accredited to perform certification assessments for the Department of Defense’s (“DoD”) new Cybersecurity Maturity Model Certification (“CMMC”) program, for part four of our podcast series discussing the various elements of CMMC.

Neal Beggan, a Principal in Cherry Bekaert’s Information Assurance & Cybersecurity Practice, selected as one of the first Provisional Assessors nationwide by the CMMC Accreditation Body, leads the series along with Eric Poppe from the Firm’s Government Contractor Services Group, to provide contractors with the latest information on CMMC and navigating its impact on the government contracting community.

In part four of the series, Neal and Eric discuss how best to prepare for a CMMC C3PAO assessment for certification. As part of this podcast they discuss:

• Current Status & Estimated Timeline
• Preparing for Assessments: Three-Phased Approach
• Types of evidence needed to obtain a certification
• Independence Considerations

If you haven’t already, catch up on the series:

• Part 1: Current State of CMMC 
• Part 2: CMMC and the DFARS Clause
• Part 3: What to Expect in an Upcoming CMMC C3PAO Assessment & How to Prepare