Government Contract Costs

"The dollar and cent realities of cost recovery."

Note: Includes coverage of the new revisions to FAR Part 30 on the administration of the Cost Accounting Standards and their implications for determining a cost impact where there are changes to a cost accounting practice.

A compact three-day course in the working rules and tested techniques of contract costing and cost recovery including:

New FAR principles
Federal grants cost issues
The continuing impact of the Acquisition Streamlining Statutes and Regulations

In the final analysis, there is nothing more basic to the fortunes of a Government contractor than recovery of valid performance costs (plus a reasonable profit). Similarly, there is nothing more basic to the success of the Government's procurement operations than control of the costs it incurs to satisfy the Nation's needs. When the work is completed and accepted—and when the books are finally closed—it is the last entry that tells the story. Everything else is prelude.

Recognizing this fact of life, we are pleased to offer a unique short course: Government Contract Costs. Developed by Federal Publications Seminars LLC, the program includes a full three days of instruction in the dollar-and-cent realities of cost recovery. You will be tutored in the complex cost principles applicable to both fixed-price and cost-reimbursement contracts; the cost facets of bidding, negotiations, claims, and terminations; the impact of the Cost Accounting Standards; the guiding decisions of the Courts and appeal Boards; and more.

Although fresh in approach, in content, and in materials, including a special comprehensive Course Manual, the program is a tested package. Comments from attendees at previous sessions provide ample evidence of its value.

Two eminently qualified instructors will lead you through the intricacies of costs — charting parallel paths for all who are concerned with such problems. Government or industry representative; contract administrator, attorney, accountant, program manager or executive; relatively uninitiated or seasoned campaigner — whoever you may be you will find workable substance in the concentrated teaching technique of these experienced lecturers.

Course Curriculum

Cost Principles Federal Acquisition Regulation (FAR) Agency Implementation Prior Regulations: DAR; NASA PR;DOE PR; Civilian Agency Regulations Cost Accounting Standards The Regulations Covered Contracts Exempt Contracts DAR NASA PR DOE PR Civilian Agency Regulations Applicability of Cost Principles Cost-Reimbursement Contracts Fixed-Price Contracts Construction Contracts Supply Contracts Research and Development Contracts Grants-Costs as Defined by OMB Circular A-21 Cost Incentives Impact Of Cost Principles During Proposal Preparation During Contract Performance At and After Completion Advance Agreements and Disclosures When Required Contracting Officers' Authority Form of Agreement Proof of Agreement Advantages and Disadvantages The Nature of Costs Definition of Costs Incurred Costs Actual Costs vs. Estimates Credits Reasonableness Basic Underlying Concepts Contractor's Discretion Basis for Disallowances Burden of Proof Approvals Allocability Direct Costs Indirect Costs Methods of Allocation Benefit Theory of Allocability Costs for Overall Operations Accounting Periods Changing Allocation Methods Equitable Allocations Critical Applications of Cost Principles Proposal Preparation and Evaluation Contract Administration Changes and Other Claims Delay and Standby Costs Subcontract Implications Terminations Overhead Overruns Unabsorbed Overhead Dealing with Unallowables Specific Types of Costs Costs Not Covered in Regulations Costs in More Than One Category Advertising and Selling Costs ADPE Leasing Costs Compensation For Personal Services Contingencies Contributions and Donations Depreciation and Rent Entertainment Fines and Penalties Disposition of Depreciables Idle Facilities Interest and Other Financial Costs Losses on Other Contracts Material Costs Patent Costs Pre-Contract Costs Professional Service Costs Research and Development Costs Severance Pay Special Tooling and Test Equipment Taxes Termination Costs Travel Bad Debts Bid and Proposal Costs The Government Contract Audit What Auditors Look For Direct Cost Problems Indirect Cost Problems Overhead Pools Liquidating Bases Disallowances Questioned Costs Special Considerations Contractor's Accounting System Unique Contract Provisions Combined Commercial and Government Work Ethics Issues

The Course Faculty

Terry L. Albertson is a partner in the Washington, D.C. law firm of Crowell & Moring LLP, specializing in Government procurement law. Mr. Albertson is active in a number of trade and professional organizations. For several years, he served as Chairman of the Committee on Accounting and Cost and Pricing of the Public Contract Law Section of the American Bar Association. A member of The Government Contractor Advisory Broad, he has written and lectured frequently on Government procurement issues, with special emphasis on cost allowability issues, multiple award Federal Supply Schedule contracts, and issues related to fraud, debarment, and suspension. He received a Bachelor's degree from Georgetown University, magna cum laude, and Master's degree from Yale University, and a law degree from Harvard Law School, cum laude,. He is a member of the Bars of State of Maryland and the District of Columbia.

Joseph A. Barsalona Partner in the Government Contracts practice of the Corporate Finance, Recovery and Disputes Group of PricewaterhouseCoopers LLP. He provides contractors with assistance on technical issues associated with the pricing, costing, and administering of Government contracts; review and design of systems; preparation of claims and resolution of disputes; design and implementation of self government programs; and litigation support services. Mr. Barsalona holds a B.S. in Accounting from Fordham University. A Certified Public Accountant, he is a member of the American Institute of CPAs, the New Jersey State Society of CPAs and the New York State Society of CPAs.