Federal Government Contracting
The decision to operate as a federal government contractor commits a business to the extensive, complex Federal Acquisition Regulation (“FAR”) rules that can challenge even an experienced and well-established accounting department. The costs of noncompliance can be substantial, in either remediation actions, payment delays, or forgone contract funding. EisnerAmper’s Federal Government Contracting Group provides specialized accounting expertise to help clients focus on their core lines of business and set the stage for future growth.
We work with federal contractors of all sizes, from start-ups to established entities with years of FAR experience, and with many government agencies including the Department of Defense, National Institutes of Health and Department of Energy. Clients engage us for a comprehensive set of pre- and post-award government contract accounting services that include accounting system compliance, contract audit, bid proposal review, and contract termination. Engagements range from accounting system compliance, to incurred cost submissions (“ICS”), FAR consulting and Defense Contract Audit Agency ("DCAA") audits.
Clients benefit from our approach in a number of ways: First, they get the support of an experienced government accounting team. Second, they get industry expertise in key government contracting sectors such as technology, life sciences, clean tech and construction. Third, they get the hands on involvement of senior EisnerAmper professionals, regardless of engagement size.
Our federal government contracting philosophy is that FAR accounting system readiness, once achieved, represents a forward-looking, year-round investment in future growth and success. Our Federal Government Contracting team participates in annual events that educate contractors on accounting system compliance and FAR-related matters, helping them prepare to do business with the federal government.
Our services to federal government contractors include:
- Set up or review accounting systems to comply with contractual obligations (e.g., cost accumulations, allocations)
- Modify systems to provide adequate controls in a job order or standard cost system
- Maximize revenues by applying the most advantageous overhead cost structure
- Recommend internal cost controls and system monitoring programs
- Evaluate company policies/procedures to meet government regulations
- Prepare forward pricing, historical cost submissions and ICS
- Liaise with DCAA representatives and other cognizant government auditors
- Provide pre-award, post-award and accounting systems audit assistance
- Negotiate direct cost and overhead audit findings with cognizant government auditors
- Perform Yellow Book/A-133 compliance audits for government contracts
- Evaluate allowability of costs or overhead pool structure
- Respond to government audit positions on questioned costs or cost pool structure
- Assist in negotiation and settlement with government representatives
- Interpret FAR
- Ensure realistic cost-estimating procedures for bidding government contracts
- Forecast direct and indirect cost inputs and overhead rates
- Assist in proposal preparation, contract negotiation and contract modifications
- Provide guidance in administering claims and settlements with subcontractors
- Participate in negotiations or prepare settlement proposals
- Prepare contract close-outs