Cherry Bekaert: Government Contractors Guidance

The 8(a) Business Development Program is a nine-year program created by the Small Business Administration (SBA) to help small, disadvantaged businesses compete and conduct business with the Federal government. The 8(a) Program offers small, disadvantaged businesses tremendous opportunities but contains stringent compliance requirements. 

What must companies be aware of to avoid early graduation from the program? At what point should companies prepare for life beyond the program? What should companies consider to thrive in a more competitive business environment?

Listen to Susan Moser, Partner and Leader of Cherry Bekaert’s Government Contracting Industry practice, and Sarah Tucker, a Senior Manager in the Firm’s GovCon practice, discuss what an 8(a) company needs to know and focus on as it prepares for life beyond the 8(a) Program, including: 

• Why some companies graduate early from the 8(a) Program
• What to consider when contemplating an early graduation
• What to monitor to stay in compliance of the 8(a) Program
• What pre-planning steps to take to transition from the 8(a) Program
• Which areas to focus on to successfully graduate from the 8(a) Program and thrive

If you have any questions specific to your situation, Cherry Bekaert’s GovCon Consultants are available to discuss your situation with you. Contact us

If you haven’t already, catch up on other episodes in our podcast series discussing various aspects of the Small Business Administration’s (SBA) 8(a) Business Development Program:

• The SBA 8(a) Business Development Program – What Is It and What Are the Requirements?
• The SBA 8(a) Business Development Program Application Process and Requirements
• What Are the Compliance Requirements for 8(a) Certified Companies?
• Winning an SBA 8(a) Sole Source Award Contract – What’s Involved and What to Know
• Winning an 8(a) Competitive Contract
• Small Business Administration (SBA) Mentor-Protégé Program
• SBA Mentor-Protégé & Joint Venture Arrangements – Important Elements of the Agreement
• The lifecycle of an 8(a) Company
• OIG Report: SBA’s Business Development Assistance to 8(a) Program Participants
• Contract Performance After the SBA 8(a) Business Development Program

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What year-end, tax-saving steps can government contracting businesses and their owners take? How can they prepare for tax law changes impacting 2023? 

In this episode of Cherry Bekaert’s Government Contracting podcast series, John Ure and Carol Marin, Tax Partners in Cherry Bekaert’s Government Contractor Industry practice and Private Client Services practice, discuss year-end tax planning at the entity and individual levels, including pertinent information for government contractors and 8(a) government contractors.

Listen in to find out about:

• Methods to reduce current year income
• Captial expenditures, fixed assets and phase out of bonus depreciation rules starting in 2023
• Retirement plans to manage income, including VIP retirement plans
• Research & Development (R&D) tax credit
• Employee Retention Credit (ERC)
• Projections and estimated tax payments to avoid surprises
• Pass-thru entity considerations
• Qualified Business Income deduction
• Charitable contributions
• Special regulations and thresholds for SBA 8(a) program government contractors

If you need help with year-end tax planning, Cherry Bekaert tax advisors are available to discuss your situation. We welcome the opportunity to identify the best tax positions and opportunities for you and your company.

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When should government contractors that work with the Department of Defense (DoD) be concerned about Cost Estimating System Requirements for compliance and adequacy per the Defense Federal Acquisition Regulation Supplement (DFARS) What are the requirements and trends being seen in solicitations?

In this third episode of Cherry Bekaert’s podcast series on each of the six Contractor Business Systems, Eric Poppe, a Director in Cherry Bekaert’s Government Contracting Industry practice, and Brendan Halloran, a Senior Manager in the Firm’s GovCon practice who previously was a Divisional Administrative Contracting Officer (DACO) at the Defense Contract Management Agency (DCMA), discuss the requirements for an adequate estimating system as outlined in Cost Estimating System Requirements, 252.215-7002.

Listen in to find out about:

• What constitutes an adequate Estimating System
• When it is a requirement
• Policies, processes, and documentation to demonstrate compliance
• Best practices and pitfalls to avoid
• How to prepare for getting an approved Estimating System

If you have any questions specific to your situation, Cherry Bekaert’s GovCon Consultants are available to discuss your situation with you. Contact us

If you haven’t already, catch up on Part 1 & Part 2 in the series:

• Contractor Business Systems Series: Part 1 – Applicability
• Contractor Business Systems Series: Part 2 – Accounting System

Cherry Bekaert’s Government Contracting Industry advisors are well versed in business systems requirements and complex control environments. We guide contractors in developing and maintaining compliant business systems, perform systems assessments, provide audit support, and prepare contractors for audits or reviews by the Defense Contract Audit Agency (DCAA), the Defense Contract Management Agency (DCMA) or other cognizant agencies.

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The Contractor Business Systems podcast series hosts members of Cherry Bekaert’s Government Contracting Industry team to discuss each of the six contractor business systems—Accounting, Estimating, Purchasing, Earned Value Management Systems (EVMS), Material Management and Accounting System (MMAS), and Property Management. 

In this second episode, Eric Poppe, a Director in Cherry Bekaert’s Government Contracting Industry practice, and Jacquelin LaClair, a Senior Associate in the Firm’s GovCon practice who spent 10 years working with the Defense Contract Audit Agency (DCAA) and the Defense Contract Management Agency (DCMA), discuss the requirements for an adequate accounting system as outlined in Accounting System Administration, 252.242-7006 and required by FAR 16.301-3 in the award of a cost reimbursable type contract.

Listen in to find out about:

• What types of Accounting System audits might be requested by Contracting Officers
• What the differences are between Pre-Award Accounting System audits and Post Award Accounting System audits
• What the government is reviewing
• How contractors should prepare for an Accounting System audit

If you have any questions specific to your situation, Cherry Bekaert’s GovCon Consultants are available to discuss your situation with you. Contact us

If you haven’t already, catch up on Part 1 in the series:

Contractor Business Systems Series: Part 1 – Applicability

Cherry Bekaert’s Government Contracting Industry advisors are well versed in business systems requirements and complex control environments. We guide contractors in developing and maintaining compliant business systems, perform systems assessments, provide audit support, and prepare contractors for audits or reviews by the Defense Contract Audit Agency (DCAA), the Defense Contract Management Agency (DCMA) or other cognizant agencies.

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Continuing in our series on the Small Business Administration (SBA) 8(a) Business Development Program and the All-Small Mentor-Protégé Program (previously the 8(a) Mentor-Protégé Program), the focus of this podcast episode is on how to handle basic accounting when entering into a Joint Venture (JV) agreement as part of a Mentor-Protégé (M-P) arrangement.

Listen to Eric Poppe, a Director in Cherry Bekaert’s Government Contracting Industry Practice, and Craig Hunter, an Assurance Partner and member of the Firm’s GovCon practice, to find out about:

• The SBA All Small Mentor-Protégé Program
• How JV arrangements are traditionally set-up
• How the day-to-day accounting flows between entities
• Billing and best practices
• Cost allocation
• How to handle the accounting for different contract types

If you have any questions specific to your situation, Cherry Bekaert’s GovCon Consultants are available to discuss your situation with you. Contact us.

If you haven’t already, catch up on other episodes in our podcast series discussing various aspects of the Small Business Administration’s (SBA) 8(a) Business Development Program:

• The SBA 8(a) Business Development Program – What Is It and What Are the Requirements?
• The SBA 8(a) Business Development Program Application Process and Requirements
• What Are the Compliance Requirements for 8(a) Certified Companies?
• Winning an SBA 8(a) Sole Source Award Contract – What’s Involved and What to Know
• Winning an 8(a) Competitive Contract
• Small Business Administration (SBA) Mentor-Protégé Program
• SBA Mentor-Protégé & Joint Venture Arrangements – Important Elements of the Agreement
• The lifecycle of an 8(a) Company
• OIG Report: SBA’s Business Development Assistance to 8(a) Program Participants
• Contract Performance After the SBA 8(a) Business Development Program

View all Government Contracting Podcasts

Join Cherry Bekaert’s Government Contracting Industry team for part one of a new podcast series discussing the six contractor business systems—Accounting, Estimating, Purchasing, Earned Value Management Systems (EVMS), Material Management and Accounting System (MMAS), and Property Management. The series will discuss Business Systems applicability, requirements and trends currently seen for Business Systems in solicitations.

In the first episode Susan Moser, Partner and Leader of Cherry Bekaert’s Government Contracting practice, and Roy Rushing, a Manager in the Firm’s GovCon practice and a former Contracting Officer with various federal agencies, discuss Business Systems applicability, including an overview of what the Business Systems are and background. Listen in to find out about:

• An overview of the Business Systems
• When contractors should be concerned about Business Systems
• Which three systems are the most common and come into play first for contractors
• When companies would encounter the other three systems
• Small business applicability and the value of these requirements beyond meeting contractual requirements

Cherry Bekaert’s Government Contracting Industry advisors are well versed in business systems requirements and complex control environments. We guide contractors in developing and maintaining compliant business systems, perform systems assessments, provide audit support, and prepare contractors for audits or reviews by the Defense Contract Audit Agency (DCAA), the Defense Contract Management Agency (DCMA) or other cognizant agencies.

If you have any questions specific to your situation, Cherry Bekaert’s GovCon Consultants are available to discuss your situation with you. Contact us

View all Government Contracting Podcasts

As companies prepare for graduation from the Small Business Administration (SBA) 8(a) program, there are many important considerations and decisions to be made. The key to successfully graduate and thrive is to plan well in advance. 

Listen to Susan Moser, Partner and Leader of Cherry Bekaert’s Government Contracting practice, John Ure, a Tax Partner and member of the Firm’s GovCon practice, and Brendan Halloran, a Senior Manager in the Firm’s GovCon practice and former Divisional Administration Contracting Officer (ACO) with the Defense Contract Management Agency (DCMA), discuss what an 8(a) company needs to know and focus on as it prepares for graduation from the 8(a) Business Development Program.

We will discuss:

• Why for some contractors focusing on staying a small business is a good thing
• If your path is to stay small, what to be aware of and to focus on for more success
• Considerations and planning for growth to meet requirements as a large business
• New SBA rule to help small businesses meet past performance requirements

If you have any questions specific to your situation, Cherry Bekaert’s GovCon Consultants are available to discuss your situation with you. Contact us

If you haven’t already, catch up on other episodes in our podcast series discussing various aspects of the Small Business Administration’s (SBA) 8(a) Business Development Program:

• The SBA 8(a) Business Development Program – What Is It and What Are the Requirements?
• The SBA 8(a) Business Development Program Application Process and Requirements
• What Are the Compliance Requirements for 8(a) Certified Companies?
• Winning an SBA 8(a) Sole Source Award Contract – What’s Involved and What to Know
• Winning an 8(a) Competitive Contract
• Small Business Administration (SBA) Mentor-Protégé Program
• SBA Mentor-Protégé & Joint Venture Arrangements – Important Elements of the Agreement
• The lifecycle of an 8(a) Company
• OIG Report: SBA’s Business Development Assistance to 8(a) Program Participants

View all Government Contracting Podcasts

Where does the Cybersecurity Maturity Model Certification (CMMC) 2.0 program currently stand? Neal Beggan, leader of Cherry Bekaert’s Risk Advisory Services and a Principal in Cherry Bekaert’s Information Assurance & Cybersecurity Practice and Eric Poppe, a Director in the Firm’s Government Contractor Services Group, discuss the latest information about the Department of Defense (DoD) CMMC 2.0 program.

Listen in to find out about:

• The CMMC accreditation body - now called “The CYBER AB”
• CAP, a pre-decisional draft of the CMMC assessment process (CAP) released by The CYBER AB
• FedRAMP certification and NIST SP 800-171
• Recent DoD memorandum and DoJ Comprehensive Cyber Review highlighting enforcement mechanisms for compliance with cybersecurity requirements
•  Voluntary assessments, which are now allowed prior to the interim final rule for CMMC, and expected to begin in late summer/early fall of 2022 

If you haven’t already, catch up on Cherry’s Bekaert’s previous guidance on CMMC 2.0:

• On-demand webinar: CMMC 2.0 Brings Major Program Changes
• Podcast: CMMC 2.0 Brings Major Program Changes

If you have any questions regarding CMMC, Cherry Bekaert’s Risk Advisory and GovCon Consultants are available to discuss your situation with you.

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On February 14, 2022, the Office of Inspector General (OIG), U.S. Small Business Administration (SBA) issued a report on SBA’s Business Development Assistance to 8(a) Program Participants. The objective of the audit was “to determine to what extent SBA measures and monitors an 8(a) firm's progress toward achieving individual business development goals. The objective was also to ensure 8(a) firms receive the help needed to meet their goals and if the program adapted during the Coronavirus Disease 2019 pandemic.”

Why should we care about the findings of this report? Often OIG reports foreshadow what might be expected in the coming year. This report gives 8(a) companies a preview of what SBA may focus on.

Listen to Susan Moser, Partner and Leader of Cherry Bekaert’s Government Contracting practice and Brendan Halloran, a Senior Manager in the Firm’s GovCon practice, discuss what they learned from the OIG report and key takeaways, including:

• Background on the SBA 8(a) Program and data points from the Report
• OIG’s findings and recommendations
• What 8(a) contractors should expect in the coming year

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.

If you have any questions specific to your situation, Cherry Bekaert’s GovCon Consultants are available to discuss your situation with you.

If you haven’t already, listen to other episodes in our podcast series discussing various aspects of the SBA 8(a) Program:

• Part 1: The SBA 8(a) Business Development Program – What Is It and What Are the Requirements?
• Part 2: The SBA 8(a) Business Development Program Application Process and Requirements
• Part 3: What Are the Compliance Requirements for 8(a) Certified Companies?
• Part 4: Winning an SBA 8(a) Sole Source Award Contract – What’s Involved and What to Know
• Part 5: Winning an 8(a) Competitive Contract
• Part 6: Small Business Administration (SBA) Mentor-Protégé Program
• Part 7: The Lifecycle of an SBA 8(a) Company

View all Government Contracting Podcasts

The use of teaming agreements when competing for government contracts can create new government contract opportunities for businesses both large and small. Teaming and subcontracting agreements give companies the chance to win awards that they might not otherwise qualify for or have the depth of technical expertise and resources individually. 

There are many factors to consider when entering a teaming or subcontract arrangement, including types of arrangements, regulatory compliance requirements, rate structures and operating and entity agreements. 

In this episode, Eric Poppe, a Senior Manager in Cherry Bekaert’s Government Contracting Industry practice, and Brendan Halloran, also a senior manager in the Firm’s Government Contracting practice, share their insights into the different types of teaming arrangements and what government contractors should consider when entering into an agreement, along with best practices.

Discussion includes:

• Reasons for entering a teaming arrangement
• Small business plans and subcontractor arrangements
• Rate structures and contract mix
• The differences between a subcontract and other teaming arrangements
• Operating and entity agreements
• Regulatory compliance considerations

If you need any help developing your teaming strategy or navigating the proposal process, Cherry Bekaert’s Government Contracting consultants are available to discuss your situation with you.

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