American Recovery and Reinvestment Act of 2009
The American Recovery and Reinvestment Act of 2009 (“ARRA”) is an economic stimulus package enacted by the 111th United States Congress and signed into law by President Barack Obama on February 17, 2009. The purpose of the ARRA is to, in part, preserve and create jobs and promote economic recovery by investing in various infrastructure improvements that provide long-term economic benefits.
The unprecedented level of United States federal funds appropriated for various infrastructure initiatives provides significant opportunities for contractors. Working for the government, however, has inherent risks and rewards. The government contract compliance requirements should be carefully evaluated to ensure appropriate policies, procedures and controls are established to mitigate the associated risk.
Contractors bidding on ARRA projects who have not previously done business with the government will likely require assistance interpreting and complying with Federal Acquisition Regulations (“FAR”) and Cost Accounting Standards Regulations (“CAS”). For example, to be complaint with FAR and CAS, companies may need to modify accounting and cost estimating systems, create proposals differently than accustomed, develop indirect rates structures, evaluate cost allowability and allocability, develop or modify policies and procedures, develop disclosure statements and institute many other changes.
Contractors who have only done limited business with the government will also likely require assistance. Smaller government contracts may only require modified CAS coverage, but with larger contracts comes the need for full CAS coverage. Full CAS coverage requires numerous accounting, policy and procedure changes.
Kroll’s Government Contract Advisory Services professionals have a track record of success assisting clients throughout the life cycle of a government contract including pre-award, post-award and dispute-related matters, including investigations and litigation. Our professionals have a track record of success assisting clients throughout the life cycle of a government contract including pre-award, post-award and dispute-related matters.
