Simplified Acquisition Procedures (SAPs) provide techniques designed to streamline the contracting process and, thus, reduce the turnaround time and administrative burden. They apply to lower dollar value (generally below $100K) procurements; which comprise the vast majority of government Acquisitions. SAP does not exclude competition; but does permit simplified evaluation & award procedures. It allows informal quoting and competition procedures, encourages accepting oral quotes vice … [Read more...]
Why are there CLINs?
One of the more confusing aspects of government contracts is the presence of contract line item numbers (CLINs). They often seem to have no relationship to the tasks you’ve been asked to perform or the commodities you’ve have been asked to provide. Thus, they require you to break out your invoices in weird ways that add cost and complexity to your accounting for no apparent reason. So, why are they required? CLINs are specified in the FAR part 4.10. They serve two purposes: (1) they break the … [Read more...]
What the Heck is DCAA Compliance?
Accounting for government contracts is unique because many of their contracts are cost reimbursable. That is, you are reimbursed based on costs you incur in performing the contract. This requires your accounting to be set up so as to facilitate verification of your costs. The government does this by conducting audits. Compliance means being able to demonstrate that the costs you claim to have incurred were in fact incurred and that the prices you present in your invoices or cost proposals are … [Read more...]
