Government contracting is one of the most highly regulated industries and understanding these regulations is crucial to ensuring that a positive and constructive relationship is built between our firm and the government entities that we consult.
What is FAR?
The Federal Acquisition Regulation (FAR) is a comprehensive, detailed series of requirements issued by various branches of the federal government. Their purpose is to regulate sales from contractors to certain government branches or federally-funded programs. The regulations lay out the terms under which the government contracts for; obtains ownership, title and control of; and pays for goods or services. It defines the rules governing contractor conduct including cost accounting, specifications, and billing. These regulations are complex and involved and may apply differently to companies based on size and other factors, and the documentation and reporting requirements for compliance can seem overwhelming.
Solutions for New Contractors
- Set up or review your accounting system
- Consult on project cost measurement and reporting
- Review cost accounting compliance with regulatory and contractual requirements
- Develop indirect cost rate structures and implement systems to collect and allocate costs accordingly
- Assist with pre-award and periodic accounting system reviews by a government agency
Solutions for Existing Contractors
- Perform incurred cost audits for submission to the appropriate governmental agency
- Review internal controls to ensure proper segregation of general and administrative costs
- Assess proper segregation of direct, overhead, and G&A expenses
- Analyze costs to determine whether they are reasonable, allowable, and allocable
- Maximize reimbursable cost recoveries
- Respond to audit requests by oversight organizations
- Prepare or review:
- Incurred Cost Electronic (ICE) proposals for submission to government auditors
- Indirect cost rates in accordance with the American Association of State Highway and Transportation Officials (AASHTO) standards
- Other rate proposals, compliance reports, or required audits
The R&A Advantage
R&A CPAs has provided comprehensive accounting and advisory solutions since 1942. Whether you have a single contract or multiple contracts, we can help your company comply with FAR requirements.