SSKO Posted September 21, 2011 Report Share Posted September 21, 2011 We issued a small business set-aside solicitation for award of a CPFF contract. The solicitation required the offeror have a government approved accounting system at the time of award. We also include the following information in Section L: ?If the offeror cannot provide adequate evidence of a government approved accounting system, the offeror can request the government initiate a "Preaward Survey of Prospective Contractor's Accounting System" to the Cognizant Defense Contract Management Agency (DCMA) to request a Defense Contract Audit Agency (DCAA) audit to assess the adequacy of a contractor's accounting system for accumulating costs under a prospective Government contract. The audit scope is limited to obtain an understanding of the design of the prospective accounting system and if it is acceptable for accumulating costs under a Government contract. DCAA will determine if the system will provide reasonable data for projection of costs to complete the contract. The offeror shall request the Preaward Survey prior to submission of a proposal to provide the maximum amount of time between audit and award?. The offeror with the highest rated proposal does not have a government approved accounting system. We have initiated a Preaward Survey for the accounting system, however the review will not be completed in time for and end of the year award. The offeror has stated it has a compliant accounting system that has been audited by a private accounting firm. They use QuickBooks Accounting System software that has been developed in conjunction with FAR regulations and designed to be compliant with all audit requirements. Is it possible to ask the SBA to provide a Certificate of Competency to the Contracting Officer for this offeror by 30 September and would that certificate make the offeror responsible for award? I understand this is not the best method but I can?t think of any other possible way to find the offeror responsible. Small businesses are in a catch 22 situation where they need an approved accounting system for award, but to undergo an audit it must be initiated by the Contracting Officer for a specific contract/requirement. Link to comment Share on other sites More sharing options...
Retreadfed Posted September 21, 2011 Report Share Posted September 21, 2011 We issued a small business set-aside solicitation for award of a CPFF contract. The solicitation required the offeror have a government approved accounting system at the time of award. We also include the following information in Section L: ?If the offeror cannot provide adequate evidence of a government approved accounting system, the offeror can request the government initiate a "Preaward Survey of Prospective Contractor's Accounting System" to the Cognizant Defense Contract Management Agency (DCMA) to request a Defense Contract Audit Agency (DCAA) audit to assess the adequacy of a contractor's accounting system for accumulating costs under a prospective Government contract. The audit scope is limited to obtain an understanding of the design of the prospective accounting system and if it is acceptable for accumulating costs under a Government contract. DCAA will determine if the system will provide reasonable data for projection of costs to complete the contract. The offeror shall request the Preaward Survey prior to submission of a proposal to provide the maximum amount of time between audit and award?. The offeror with the highest rated proposal does not have a government approved accounting system. We have initiated a Preaward Survey for the accounting system, however the review will not be completed in time for and end of the year award. The offeror has stated it has a compliant accounting system that has been audited by a private accounting firm. They use QuickBooks Accounting System software that has been developed in conjunction with FAR regulations and designed to be compliant with all audit requirements. Is it possible to ask the SBA to provide a Certificate of Competency to the Contracting Officer for this offeror by 30 September and would that certificate make the offeror responsible for award? I understand this is not the best method but I can?t think of any other possible way to find the offeror responsible. Small businesses are in a catch 22 situation where they need an approved accounting system for award, but to undergo an audit it must be initiated by the Contracting Officer for a specific contract/requirement. I don't know what type of contract you are expecting to award, but I know of no FAR requirement that a contractor have a government approved accounting system to be considered responsible. Instead, a contractor needs to have an accounting system that is adequate for the contract type being proposed. See FAR 16.104(i) and FAR 9.105-1((2)(i)(. As you have recognized, having an adequate accounting system is an element of responsibility. If you determine that a small business does not have an adequate accounting system and you find that small business non-responsible as a result, you must refer the matter to the SBA for a COC. See, PMO Partnership JV, B-401973.3, B-401973.5 (Jan. 5, 2010). Link to comment Share on other sites More sharing options...
SSKO Posted September 21, 2011 Author Report Share Posted September 21, 2011 I don't know what type of contract you are expecting to award, but I know of no FAR requirement that a contractor have a government approved accounting system to be considered responsible. Instead, a contractor needs to have an accounting system that is adequate for the contract type being proposed. See FAR 16.104(i) and FAR 9.105-1((2)(i)(. As you have recognized, having an adequate accounting system is an element of responsibility. If you determine that a small business does not have an adequate accounting system and you find that small business non-responsible as a result, you must refer the matter to the SBA for a COC. See, PMO Partnership JV, B-401973.3, B-401973.5 (Jan. 5, 2010). Government approval is not in the FAR, you are correct. The noted contract type is a CPFF.....Cost Plus Award Fee. I also state.............."to request a Defense Contract Audit Agency (DCAA) audit to assess the adequacy of a contractor?s accounting system for accumulating costs under a prospective Government contract". The offeror has never had DCAA /Government review of its accounting system, so what basis do I have to determine the adequacy of the system in order fto deem the offeror to be "responsible"? The issue is that I will not be able to obtain the results of DCAA's review to determine responsibility and award by 30 September. The only other option I could think to try was the CoC. I was asking if others in this situation have used another approach. My HQ SBA recommended I call the congnizant SBA directly; but before I did so, I was searching for any other options form the Wifcon community. Link to comment Share on other sites More sharing options...
Guest Vern Edwards Posted September 21, 2011 Report Share Posted September 21, 2011 Has the contractor ever had a CPFF contract with any government agency? If so, have you asked that agency if they found the accounting system to be adequate? Can the offeror get the private accounting firm to provide a letter to the CO stating that the accounting system is adequate? The best way to approach the SBA is to get the name and phone number of the SBA employee who is handling the COC request and call and ask if he or she would speed things up. You should be able to get that info from the offeror. I used to work in an SBA office that handled COCs and contracting officers did that all the time. It didn't create any problems. However, what you're likely to be told is that everything depends on how quickly the contractor moves to get info to the SBA analyst. Be nice when you call -- it goes a long way. They will probably be under pressure at the end of the fiscal year and you won't be the only one asking for an expedited process. What are you going to do if SBA denies the COC on September 29? It's not likely, but just in case... Link to comment Share on other sites More sharing options...
KMY Posted October 11, 2011 Report Share Posted October 11, 2011 The SBA Website indicates the following: The COC program is carried out by a specialized SBA field staff of individuals with technical, engineering, and government procurement back grounds in cooperation with financial specialists, also of the field organization. Upon receipt of a COC application, the SBA notifies the contracting officer of the purchasing agency that the prospective contractor has applied, and a team of financial and technical personnel surveys the firm?s potential for the specific acquisition in question. During the evaluation, SBA considers credit ratings, past performance, management capabilities, management schedules, and the prospects for obtaining needed financial help or equipment. I don't see any indication that the accounting system of a small business is reviewed to determine if it is adequate for accumulating costs under a prospective Government contract. Can anyone provide information based on past experience to indicate whether the accounting systenm was reviewed and a determination of adequacy rendered? Link to comment Share on other sites More sharing options...
C Culham Posted October 12, 2011 Report Share Posted October 12, 2011 KMY ? Following on to Mr. Edward?s suggestions which are right on let me add a little more specific information. Many folks error in simply asking SBA for a COC review. Your request should be specific and pinpoint the area(s) of concern that you would like SBA to review for the COC effort by documenting your reasoning why the firm Appears to lack responsibility (Ref: FAR 19.602-1,specifically (a) and ©(20(vi)). Spinning off of the limited information in the thread your request to SBA might include a justification and documentation that goes something like this, with added details of course. ?The ability of the firm to perform the work is questioned specifically for lack of ability of their accounting system adequacy to accumulate costs under a prospective Government contract type considering the type of work to be performed and/or their ability to obtain the resources to meet this need. This specific concern is with regard to consideration of FAR 9.104-1(e) and FAR 9.104-3(a).? Link to comment Share on other sites More sharing options...
joel hoffman Posted October 12, 2011 Report Share Posted October 12, 2011 KMY – Following on to Mr. Edward’s suggestions which are right on let me add a little more specific information.Many folks error in simply asking SBA for a COC review. Your request should be specific and pinpoint the area(s) of concern that you would like SBA to review for the COC effort by documenting your reasoning why the firm Appears to lack responsibility (Ref: FAR 19.602-1,specifically (a) and ?(20(vi)). Spinning off of the limited information in the thread your request to SBA might include a justification and documentation that goes something like this, with added details of course. “The ability of the firm to perform the work is questioned specifically for lack of ability of their accounting system adequacy to accumulate costs under a prospective Government contract type considering the type of work to be performed and/or their ability to obtain the resources to meet this need. This specific concern is with regard to consideration of FAR 9.104-1(e) and FAR 9.104-3(a).” Carl, not trying to be cynical - but wouldn't it be better to quote the FAR reference to the SBA, who operates under a separate Code of Federal Regulations than 48 CFR? Link to comment Share on other sites More sharing options...
C Culham Posted October 12, 2011 Report Share Posted October 12, 2011 Joel - I read your question to mean "to quote the FAR Part 19 references to SBA" rather than the FAR Part 9 references. You could but I wonder why? Remember before submitting a firm for a COC the CO must make a determination of nonresponsiblity. In my view to do so the CO is using FAR Part 9 not FAR Part 19. FAR Part 19.6 and the related CFR that supports it is simply SBA's process for in turn telling a CO that while he/she may have determined the firm to be non-repsonsible the SBA is either certifying that the firm is responsible to perform or not. So again the CO's determination is supported by appropriate FAR Part 9 citations and other facts related to the specific firm and the instant procurement. Close read of FAR 19.6 supports that the CO "shall" provide the documentation that they developed to determine that a firm is not responsible. Your question in part is related to my comment that folks in making COC referrals are too general by asking simply for a COC review. Rather they should be specific and state why they believe the firm is not responsilbe, defend that position with facts and then leave it to SBA to determine if they want to certify to the firms responsibility in light of the facts. Link to comment Share on other sites More sharing options...
joel hoffman Posted October 12, 2011 Report Share Posted October 12, 2011 Joel - I read your question to mean "to quote the FAR Part 19 references to SBA" rather than the FAR Part 9 references. You could but I wonder why? Carl, I simply mean, in conversing with the SBA, it might be better to include the FAR language that you are referring to rather than simply referencing the FAR numbering system. Its not their primary CFR. They likely have their own cross references. Link to comment Share on other sites More sharing options...
SSKO Posted October 12, 2011 Author Report Share Posted October 12, 2011 Has the contractor ever had a CPFF contract with any government agency? If so, have you asked that agency if they found the accounting system to be adequate?Can the offeror get the private accounting firm to provide a letter to the CO stating that the accounting system is adequate? The best way to approach the SBA is to get the name and phone number of the SBA employee who is handling the COC request and call and ask if he or she would speed things up. You should be able to get that info from the offeror. I used to work in an SBA office that handled COCs and contracting officers did that all the time. It didn't create any problems. However, what you're likely to be told is that everything depends on how quickly the contractor moves to get info to the SBA analyst. Be nice when you call -- it goes a long way. They will probably be under pressure at the end of the fiscal year and you won't be the only one asking for an expedited process. What are you going to do if SBA denies the COC on September 29? It's not likely, but just in case... As suspected, SBA's process for rendering a COC did not fit into the short timeframe for award prior to FY end. We did provide them our determination of non-responsibility. Since the procurement was a total set-aside, SBA did not take issue with our determination. But thank you Vern, I sure know what to do the next time!! Link to comment Share on other sites More sharing options...
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