Evolve: Understand Health Care Act Calculations
Health care reform’s main event for employers, the “Employer Shared Responsibility” provision – arrives in 2014, as part of the Affordable Care Act (ACA). That’s when employers with 50 or more full-time equivalent employees will have to either “pay” (a substantial tax penalty) or “play” (by offering “affordable” health coverage of at least “minimum value” to their full-time employees). Health care reform calls for two possible penalties, one for not offering “minimum essential” coverage and a different penalty for offering coverage that is considered inadequate because it is not “affordable” and/or it does not provide “minimum value.”
- The “no offer” penalty applies if the large employer does not offer “minimum essential” coverage or offers coverage to less than 95% of its full-time employees, and at least one of the full-time employees receives a premium tax credit to help pay for coverage on an Exchange. Continue reading »
Evolve: Evolving Proposals from Best Value to Lowest Price Technically Acceptable
Or perhaps we should say “devolving” from Best Value to Lowest Price Technically Acceptable (LPTA). It seems counter intuitive to eschew the “best bang for the buck” for the “cheapest cost I can get away with now” because that approach invariably costs more in the long run. However, whether or not sequestration occurs in two months as presently scheduled, one way or another there will undoubtedly be less money available for contractors. Therefore, many federal agencies are now more concerned about the immediate costs of a contract than they are about the long term or life cycle costs.
Most commentators who have written on the increased use of LPTA procurements stress the obvious need to propose the lowest price possible. This places the focus on the cost proposal. However, most of the companies Aronson is familiar with already propose the lowest price possible Continue reading »
Evolve: A Corporate Annual Check-Up
By Sid Jaffe, CEO, Advantage Consulting, Inc.
Corporate leaders should be confident about the tactics and activities the firm is engaged in. There are seven simple business questions that constitute a quick Business Check-Up. Each is a “yes or no” question. Your goal is seven yes responses. The follow-on question poses an Action Item.
- Are we driving increased valuation of the business and not simply “rising and falling with the tide?” How do we increase valuation on a predictable basis? Continue reading »
Evolve: Key Tax Provisions of “Fiscal Cliff” Legislation
You are probably aware that Congress passed legislation (the “American Taxpayer Relief Act”) early Wednesday morning, which the President is expected to sign into law to avert (or delay, depending on you viewpoint) the so-called “Fiscal Cliff.” While the legislation only delayed by two months widespread automatic spending cuts, it prevents many of the tax increases that were scheduled to take effect in 2013. With the exception of a targeted tax increase to the wealthiest Americans, the Act permanently extends provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), and the Jobs and Growth Tax Relief Reconciliation Act of 2003, P.L. 108-27 (JGTRRA). It also permanently addresses Congress’ reoccurring task of “patching” the alternative minimum tax (AMT). Further, it temporarily extends many other tax provisions that had lapsed at the end of 2012 and others that had expired a year earlier. Among the tax items not addressed by the Act was the so-called “payroll tax holiday.” Thus, the temporary 4.2% rate for the employees’ portion of the Social Security payroll tax will revert back to 6.2%, effective January 1, 2013.
Below is a summary of the key tax provisions: Continue reading »
Evolve: Better Disaster Recovery Readiness
More and more companies are concerned about whether their on-site disaster recovery readiness is up-to-date and supported by the right technology. If your organization manages its accounting software in-house, and you’re resolved to improve your disaster recovery infrastructure, Cloud solutions may be your best choice.
Here’s what to look for: Continue reading »
Evolve: Operational Improvements
As calendar year 2013 starts so do most of our “New Year Resolutions.” Here are some resolutions to evolve your business and survive the upcoming year:
Exercise judgment without compromising your ethics: We’ve seen it all in 2012 – from suspension to debarment. Pressure has pushed some people to behave unethically. Don’t let that pressure affect your company. When it comes to ethics, proactively implement policies instead of “learning your lesson” later on. All government contractors, large and small, need to have and keep up with their ethics policies.
“Cloud adoption will move from an option to a ‘must have:’” As reported by Government Technology, in the coming year the cloud’s impact on business and government strategies will continue to accelerate, and it will be the biggest driver behind major IT decisions and the biggest IT disruption in 25 years. While the cloud push is not new this year, the next wave of cloud technology, including support and mission systems, will shift your business model and add new requirements to IT contracts in the year to come. Continue reading »
Evolve: Upgrade to Deltek Costpoint 7 – Don’t Wait til the Last Minute…
Deltek recently released a product alert indicating that Costpoint 6.1 SP2 will move into sustained support effective October 1, 2013. This means that customers will continue to have access to all fixes or service packs that existed prior to the Sustaining Support life cycle phase. However, there will be no new software enhancements, hot fixes, service packs, or regulatory updates of any kind for versions in this phase.
It is recommended that your organization begin planning for an upgrade to Deltek Costpoint 7 as soon as possible. An upgrade of this magnitude, including planning, training and testing may take three to six months. Plan now to avoid any gaps in support to your organization’s Costpoint system. With all of the new enhancements in Costpoint 7 your organization has much to gain in migrating to the new version.
As a first step, we suggest that you Continue reading »
Evolve: Amtower’s Predictions for 2013
Since 1985 I have been closely observing best tactics for marketing to the government. I have written on this, presented at hundreds of various events, written two books on the subject, host a weekly radio show on the topic, and still, the market morphs – and there is more to learn.
I remain fascinated by this ever-changing market.
I have determined that there are no trend-setters in the GovCon market, largely because the government is slow in adopting most things and contractors tend to follow the feds. Those who attempt to set the trends usually end up as chalk outlines on the contracting sidewalk. Witness the myriad of well-funded companies that started and died during the dot-com era, or the thousands of companies that sign up on CCR, only to disappear. Continue reading »
Evolve: 2013!! Resolutions for Government Contractors
As calendar year 2013 starts so do most of our “New Year’s Resolutions.” Aronson will start the new year sharing our top resolutions for government contractors to Evolve and prepare for the upcoming challenges of 2013. Please come back every day to read a new resolution to improve your business and register to post any comments or questions you have to share on the topics.
Check back tomorrow for the first 2013 Resolution or better yet, subscribe to our Fed Point RSS Feed and have the news delivered directly to you! (Click here to learn more about RSS).
Doing More with Less: Stay Profitable During Government Spending Uncertainty
Government spending uncertainty can create havoc on your organization. The continuing environment of a growing budget deficit, unknown spending cuts looming, Congressional gridlock with an election year and regulations mandating complex processes and compliance standards are creating barriers for entry and competing in the government marketplace. The traditional government contractor needs to rethink how it approaches doing business and behave like a commercial entity. To do this, adapt a culture that fosters nimble decision making, innovation and doing more with less. The following are key tactics to apply:
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- A Marriage of Inconvenience: GSA Schedule Contracts & The Contractor Code of Business Ethics & Conduct Clause
- Emerging Small Businesses: To Grow Your Business, You Must Plan For Growth
- Government Contracting: Look Before You Leap!
- GSA Schedules – Strategies for Success
- New Employee vs. Independent Contractor Considerations
- Pay on Display – Understanding the Executive Compensation and Subcontractor Data Reporting Requirements & Ramifications
- The GSA Schedule: Your Ticket to the Federal Market (May 2010)
- The New FAR Codes of Conduct and Compliance Program Provisions
- The Seven Deadly Sins (of contract compliance)