Costs & Pricing
The Federal Acquisition Regulation (FAR), various agency supplements and cost and pricing regulations apply to companies doing business with the federal government or a prime contractor. These regulations may impose certain accounting requirements on federal contractors and, in some cases, subcontractors. The extent of the applicability of these regulations depends in part on the size of your company. But to some extent the underlying statutes and regulations impact all companies doing business with the government. Consider:
- Only certain costs are allowed to be charged to a government contract.
- Contractors and their subcontractors may be required to certify costs under Truthful Cost and Pricing Data (for “old timers” the Truth in Negotiations Act (TINA)).
- Failure to adhere to cost and pricing regulations could cause a company to be liable under the False Claims Act (FCA).
- The government has broad audit rights under certain contracts.
- Significant insight into cost data may be required for certain proposals.
- The government is not liable for contractor costs incurred if the costs were not authorized in advance.
- Failure to obtain government agreement for a novation can result in a contractor not being reimbursed.
- Submitting a Request for Equitable Adjustment (REA) or a contract claim requires the costs be segregated and properly accounted for.
The government has an arsenal of remedies for improper business practices. Proper accounting, pricing, and billing practices are imperative. If you are seeking assistance with cost and pricing issues under federal government contracts, I can provide you with the guidance you need at an affordable price.
I welcome you to contact me to discuss cost and pricing issues related to government contracting.