Aronson’s experts are helping companies expand their approach to government contracting. Join Aronson as we speak at the following events in April:
April 5, 2017 at 11:00 am ET | Free Webinar: The Ultimate Compliance Test: Understanding GSA OIG Pre- Award Audits
April 12, 2017 at 1:00 pm ET | Thompson Webinar: Budgeting Indirect Rates: Making Contracts More Compliant, Competitive and Profitable
April 19, 2017 at 11:00 am ET | Free Webinar: The Ten Commandments of GSA Schedule Compliance
April 27, 2017 at 11:00 am ET | Free Webinar: SOC Reports 101— Boost Your Business’ Bottom Line
President Trump revoked the Fair Pay and Safe Workplaces Executive Order 13673 on March 27, 2017, and ordered that any associated rules and regulations be rescinded. The order required federal contractors to report labor law violations at the time of contract bidding and semiannually thereafter to include: 1) civil judgements, 2) administrative merits determinations, and 3) arbitral awards including awards that are not final or are subject to court review. The rule never went into effect as a federal district court in Texas filed a preliminary injunction on October 24, 2016, the day before the rule was to go into effect. Federal contractors are relieved of a huge compliance burden, as they will be spared the time and cost of reporting labor law violations, including alleged violations, at the time of bidding and subsequently thereafter.
The Government Accountabilty Office (GAO) recently released its “Contracting Data Analysis: Assessment of Government-Wide Trends” report. As GAO notes, in fiscal year 2015 federal contracts for goods and services totaled over $430 billion, which represents almost 40 percent of the government’s discretionary spending. The new report identifies overall trends in contracting by defense and civilian agencies from fiscal years 2011 through 2015 (the most recent and complete available at the time of GAO’s review), including trends in competition and use of various contract types. It also provides snapshots of procurement activity at the 10 civilian agencies with the highest levels of obligations in fiscal year 2015, as well as the 3 military departments.
Every year, GSA’s Office of Inspector General (OIG) selects around 50 GSA Schedule contracts for the ultimate compliance test –a pre-award audit. The stakes in an OIG audit are high, so proactive contractors should consider when a pre-award audit is likely to occur, what comprises the audit process, and what auditors look for as a critical component of their compliance program planning.
Winning a contract in a new state can present many challenges, not least of which is ensuring that your company is compliant with the state’s tax code. The worst approach to state tax compliance is assuming that the taxes your company may be subject to and the tax treatment of your company’s activity will be the same as in other states. This is especially the case when it comes to Hawaii. It’s not surprising that many government contractors venturing into Hawaii overlook the General Excise Tax (GET), as it’s often assumed that the GET is essentially the same as most other states’ sales and use taxes. However, the unique nature of the GET can catch many businesses off guard, and the Department of Taxation’s penalties can be quite unforgiving.