FAR ALERT!  ARE YOU PREPARED TO BE COMPLIANT WITH THE FLY AMERICA ACT?

March 4, 2008 – Washington DC –  All US Federal contractors are now required to comply with the Federal Acquisition Regulations (FAR) travel limitations including compliance with the Fly America Act.  This new US Code provision covers recouping air travel expenses for most everyone directly funded by the US Government — and requires them, in most cases, to limit travel to only US flag carrier airlines.

As part of this compliance, you need to be conscious of the limitations for all Government-financed travel costs incurred as a direct expense of your contracts and for any travel incurred that will be included in any of your overhead pools or in your general and administrative costs. What sometimes trips up government contractors is when you have both commercial and government projects being performed at the same time in or about the same place by your company personnel. While you need to be compliant with private contracts and their limitations on your travel costs, you need to be especially vigilant in this area with your Federal contracts.   The Federal government needs to know your direct and indirect travel costs that apply to their contracts. The Defense Contract Audit Agency (DCAA) is required to perform a pre-award audit of your ability to comply with Federal contract requirements prior to award of your contract.   In other words, the cost estimates, including travel costs that were used to select you as the contractor, will be reviewed by DCAA.  If they determine that your cost estimates were based on an inadequate accounting system, you will not be allowed to perform the contract and the award will go to another competitor.

Further, you need to be aware that the DCAA is required to approve your overhead costs before you can receive 100% reimbursement for these travel costs and fee, within the limitations of the terms and conditions of your contract. Even with a fixed price negotiated contract, DCAA will still be required to perform a pre-award audit.Our Bay Tree Advisory Group Accounting and Government Compliance Specialists will help you understand the Fly America Act and how it applies to you. Don’t let the Federal government disallow your contract due to an inadequate accounting system or suffer repayment delays due to a lack of understanding of the Fly America Act or other contract compliance.  The Bay Tree Accounting and Compliance Experts understand your needs based on their extensive experience in government accounting and following FAR regulations.  Our goal is to make you one of the best government contractors in your field and we dedicate ourselves to helping you reach your goals. In addition, our experts can explain and offer services for other DCAA regulations as needed.  This includes all areas of contract compliance to most all procured goods and services. They will assist you in documenting your internal control procedures, but best of all, will test your compliance prior to your pre-award audit by DCAA.

Look for further details about our exciting new business to be posted soon.