Montgomery County Department of Transportation (MCDOT) highway services begins three more road projects funded through the American Recovery and Reinvestment Act (ARRA). MCDOT has received over $15 million in stimulus funds designed to boost the economy of local governments and improve the transportation infrastructure. MCDOT’s Division of Highway Services received $6.7 million to improve seven deteriorated roadways. The first project, Barnesville Road, was completed last fall, and now three additional resurfacing projects are underway.
Begun in the spring and nearly complete, a resurfacing project on Old Columbia Pike from MD 198 to US 29 is replacing defective curbs, gutters, and sidewalks; patching pavement; and resurfacing with hot mix asphalt. Similar improvements are underway on 10 lane miles of Shady Grove Road,
The Coalition for Government Procurement (CGP) held its annual Fall Conference November 2-3 in McLean, VA. The event was well-attended and attracted high-profile speakers, including Senator Claire McCaskill (Chair, Senate HSGAC Subcommittee on Contract Oversight), GSA’s FAS Commissioner Steve Kempf, and Lesley Field, Deputy Administrator of the Office of Federal Procurement Policy (OFPP). The conference featured discussion on many of the issues discussed here on FedPoint, including the increasing compliance climate, procurement strategy in a tightening budget, and GSA’s struggles with competition, workload and staffing.
Here are the Top 10 things I think government contractors should know as we continue to move, according to outgoing CGP President Larry Allen, “from partnership to uncertainty”:
Just when we thought that the ARRA reporting requirements couldn’t get more intensive and despite the fact that over 80% of the Recovery Act funds have already been spent, an interim rule to change FAR clause 52.204-11 went into effect July 2nd requiring first-tier subcontractors with awards above $25,000 to report on job creation and retention. This new provision will apply only to awards issued after July 2, 2010. Although the rule requires subcontractors to capture the job data and report, prime contractors should be aware of the provision as they are responsible for flowing this requirement down to its first-tier subcontractors and submitting their subcontractors’ data to FederalReporting.gov.
Additionally, prime contractors will now be required to file reporting for new ARRA contracts within 10 days of the end of the quarter in which the contract is awarded, as opposed to the first quarter in which the contract is invoiced. The interim rule is open for comments through August 31, 2010. Welcome to the Brave New World – next stop, DNA samples?
DON’T FORGET, YOUR ARRA REPORTING FOR APR-JUN IS DUE JULY 10th!
Entering the government contracting sector seems especially enticing during a recession. While contracting may be a good fit for your business, make sure you’re aware of the unique aspects of dealing with the government.
Government contracting is big business in the Commonwealth of Virginia. Federal procurement spending in Virginia across all agencies totaled $53.9 billion in 2008. Historically, some have considered federal government work to be a safe haven during uncertain economic times. While profit margins on government contracts are relatively low, Uncle Sam tends to be a reliable and potentially long-term customer. During the current recession, the lack of private sector work combined with “stimulus” spending under the American Recovery and Reinvestment Act of 2009 (ARRA) is causing some companies to consider government contracting. Many of these companies are small businesses. Contracting with the federal government imposes requirements on companies not commonly found in the commercial market. By and large, the government is spending taxpayer dollars. Understandably, the government requires much greater visibility into how dollars are spent than is typically required in the private sector.
Read entire article at VSCPA site for an overview of some of the unique aspects of government contract accounting and the challenges that commercial companies will encounter as they move into the government market.
Tom Marcinko and Bill Foote, CPA, are with Aronson & Company, a nationally ranked top-50 accounting and consulting firm. As a member of Aronson’s Government Contracts Services Group, Tom assists clients with both pre- and post-award contract administration, compliance and other regulatory requirements. Bill serves as an officer in the firm’s Forensic & Valuation Services Group, where he assists government contractors with valuation projects and contract disputes. He is also a member of the VSCPA Editorial Task Force. Contact Tom at email@example.com and Bill at firstname.lastname@example.org.