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Hi All, I work for a small federal contractor (90% of our work is gov't contracts) that does not have a purchasing department. Rather, our engineers do their own purchasing. Needless to say, this is a nightmare for me from a compliance standpoint, and the President of the company (also an engineer) is resistant to change. I've recently discovered that we are issuing POs for direct charge parts and materials where multiple contracts are charged to one PO. However, rather than noting the allocated amount being charged to each contract's project number, we are assigning a percentage value of the cost of each line item that is to be charged. Here's an example: Widget qty 10 unit price $1 total $10 Contract #A 20% Contract #B 35% Contract #C 42.5% IR&D Project 2.5% I've never seen a company do this before. Is this ok, or do we need to show the exact dollar amount allocable to the contract or project to which the items are charged? Thanks in advance for your thoughts!
Hi All, Although I've been using WIFCON as a resource for almost 15 years, this is the first time I've actually asked a question, so thanks in advance for sharing you knowledge with me, and for all of the guidance in the past 15 yrs! I've recently taken a new job at a small R&D contractor, and I'm dealing with an issue that is utterly confounding me, as I've never dealt with leased equipment under a gov't contract. Here's the facts relevant to the situation (all of which took place prior to my employment): 1. Our company is leasing some scientific equipment to be used on an R&D contract for our DOD customer. 2. The company from who we leased the item wanted pre-payment prior to delivery of the equipment. 3. The Government contracts attorney we were using prior to my arrival advised that pre-payments are not allowable, and we would have to get permission from our KO to bill the full amount of the lease to the contract. 4. We requested permission from the ACO, who's response was "I don't have a problem with it". 5. To complicate matters, we now need to use this leased equipment on two other contracts, but it has already been charged and billed to one contract. Here's my questions: 1. I can't find any reference to pre-payment of leased equipment being unallowable. Does anyone have a reference for this? 2. In order to use the leased equipment (already billed to one contract) on another contract, what do I need to do from an accounting standpoint? Also, leases are not GP subject to part 45, but do I need to also request KO permission to use the leased equipment on another contract? Thanks again for your help! --j