THE BASICS Beverly Arviso, CPA, CPCM, CFCM Arviso, Inc. beverly@arvisoinc 757-373-9536

1. THE BASICS Beverly Arviso, CPA, CPCM, CFCM Arviso, Inc. beverly@arvisoinc.com 757-373-9536

2. Course Objectives • The Basics • Contract Administration • Infrastructure • Questions and Answers

3. The Basics • Taxpayer ID Number (TIN) • IRS – 1-800-829-1040 • Dunn & Bradstreet Number (DUNS) • 1-800-333-0505 • www.dnb.com • Register in the Central Contractor Registration • www.ccr.gov • On-line Representations and Certifications Application (ORCA) • https://orca.bpn.gov

4. The Basics • Cage Code • www.dlis.dla.mil • North American Industry Classification System (NAICS) • http://www.census.gov/eos/www/naics/

5. Contract Administration • Federal Acquisition System • Federal Business Opportunities • https://www.fbo.gov/ • Federal Acquisition Regulation (FAR) • www.acquisition.gov • Agency Supplements • Except as authorized by law, agency supplements shall not conflict with or be inconsistent with the FAR

6. Contract Administration • Who acts for the Government? • Contract Specialist • Contracting Officers • Warrants via SF1402 • Only person authorized to enter into contracts on behalf of the Government • Administrative Contracting Officer (ACO), FAR 42.302 • Contracting Officer’s Representatives • COR Training • COR Assignment Letter

7. Contract Administration • Most contract types are classified by how they are priced • The objective to be achieved when negotiating contracts type and price is to agree on a type and price that will result in reasonable contractor risk while providing the contractor with the greatest incentive for efficient and economical performance

8. Contract Administration • Impact of Contract Types • The amount of government financial review and surveillance is determined by the type of contract awarded • The government will have greater interest in the company’s accounting practices where incurred costs are the primary factor in establishing the amount the contracting agency ultimately pays for the work performed • When the final contract price is unaffected by actual cost or performance, government procurement policy requires considerably less review and surveillance

9. Contract Administration • Contract Types • Firm Fixed Price (FFP) • Time-and-Materials (T&M) • Cost Reimbursement • Indefinite Delivery/Indefinite Quantity (IDIQ) • Delivery vs. Task Order • Government Wide Acquisition Contracts (GWACs) • Multiple Award Contracts

10. Contract Administration • RFP Process • Identification of a need • Site Surveys • Industry Days • Draft RFPs • Sources Sought • Bid/No Bid Decision • Identify Team • Internal and External Parties • Teaming Agreements • Non-Disclosure Agreements • Release of RFP • Begin writing BEFORE RFP is released….how?

11. Contract Administration • Read the solicitation (and read it again and again) • Determine Contract Type • Schedule B, Supplies or Services and Prices/Cost • Schedule C, Statement of Work • Schedule L, Instructions, Conditions, and Notices to Offerors • Schedule M, Evaluation Factors for Award

12. Contract Administration • Contract Award Meeting • Can vary by size and complexity of procurement • Corporate policy defines • Attendees (including teaming partners) • Roles and Responsibilities of Attendees

13. Contract Administration • Contract Award Meeting • Preparation and Review of a Contract Brief • Sets forth job charging requirements • Sets forth Billing and Payment Requirements • Defense Finance and Accounting Services (DFAS) • Wide Area Workflow (WAWF) • Sample Invoice can be found at www.dcaa.mil • Set forth any pertinent clauses or special terms • Small Business Set Aside Requirements • Publicity notification requirements • 75% notification • Fee withholds

14. Contract Administration • File Documentation • RFP • Proposals (All Volumes) • Teaming Agreements/Non-Disclosure Agreements • Original contract and all agreements • Modifications • Task and Delivery Orders and all Modifications • Correspondence • Update contract brief

15. Contract Administration • Changes • Inside or outside the scope of work • Work at Risk • Tracking and approval process • Subcontractors? • Contract Close-out • Incurred Cost Submissions • Sample can be found at www.dcaa.mil • Final Invoice • Sample can be found at www.dcaa.mil • Release of Claims and Assignment of Refunds, Rebates, and Credits

16. Basic Infrastructure • Accounting System Polices and Procedures • General Ledger Design • Invoicing • Project Budgeting and Reporting • Timekeeping Policies and Procedures • Travel and Expense Reimbursement

17. Accounting System • Segregation of Costs • Pre-Award Accounting System Survey (SF 1408) • Responsibility Determination per FAR Part 9 • System must be able to track costs and allocate to projects • Direct vs. Indirect Cost (FAR Part 31) • Clear distinction on chart of accounts • Direct costs are recorded on a job by job basis • Indirect costs are calculated at the corporate level and allocated to the jobs

18. Accounting System • Segregation of Costs • Development of Indirect Rates (FAR Part 31) • Cost Pool/Allocation Base = Indirect Rate • Document the pools and base • Standard 3 tiered indirect rate structure • Fringe • Overhead • G&A • Unallowable Costs (FAR Part 31)

19. Accounting System • Billing and Collections Procedures and Controls • Contract Review/Preparation of Contract Briefs • Invoice Preparation • Generated from accounting system books and records • Invoice Review by Program Manager • Payment monitoring • Budgeting and Reporting • Corporate Indirect Rate Budget • Project Budgets • Reporting Budget vs. Actual

20. Timekeeping Policies and Procedures • Manual or electronic • Record all hours worked • Time should be entered daily, in ink, for all employees • Job Number and Project Name should be pre-printed if possible • Charge Numbers should be provided by Supervisor not accounting department • Vacation, holiday, sickness, and excused time should be recorded • Annual Training • Proof of Process Compliance

21. Contract Accounting • Defense Contract Audit Agency (DCAA) • Types of Audits • Accounting system • Financial capability • Pre-award • Timekeeping • Billing • Incurred Cost

22. Contract Accounting • DCAA Resources • www.dcaa.mil • Information for Contractor’s Guide • DCAA Audit Programs • DCAA Contract Audit Manual

23. Questions Questions • Beverly Arviso, CPA, CPCM, CFCM • President, Arviso, Inc. • beverly@arvisoinc.com • 757-373-9536