New Contractor Guidelines

Contractors new to the government market space face a daunting array of compliance considerations not encountered in the commercial market space.  As such, a carefully designed compliance program is critical to ensure success throughout the government contract life-cycle.  Some of the key concepts for contractors to consider include:

  • Cost Accounting Standards (CAS) – Contractors face differing levels of compliance requirements of “coverage” based on the value of contracts received from the federal government which may change based the portfolio of government contracts.  Certain coverage levels require contractors to formally disclose their government accounting practices to demonstrate compliance.
  • Federal Acquisition Regulations (FAR) – Similar to the CAS requirements, government contracts (federal, state and local) include provisions for compliance with the FAR; notably, FAR Part 31 for the identification and exclusion of “unallowable costs”.
  • Policies & Procedures – In addition a carefully designed compliance program, contractors must establish other key policies and procedures to facilitate ongoing CAS and FAR compliance:
  • Cost Estimating – accurate and reliable cost estimates are critical to success
  • Cost Accounting – individual project and contract accounting is a must
  • Timekeeping – accurate time reporting and costing is necessary
  • Purchasing – obtaining the best overall value is expected
  • Other Compliance Considerations – Audits & Access to Records, Incurred Cost Submissions (ICSs), unallowable costs, etc.,

CGS assists new contractors through:

  • Performing a “Gap” Assessment to identify where disconnects exist between current practices and required compliance practices.
  • Designing and implementing compliance practices based on our GAP assessment.
  • Providing employee training, as necessary, to increase your employees’ knowledge and understanding of the government’s requirements.
  • Providing ongoing compliance and risk management support as the contractor further develops its government presence.

Please contact us for more information on how we can help your company to become a successful government contractor.