With the falloff in residential and commercial construction in many markets, some construction contractors have considered expanding their revenue horizons by investigating contracts funded by the American Recovery and Reinvestment Act of 2009.

However, locating, pursuing, and meeting the requirements of government contracts is vastly different from private sector work. Construction professionals should be aware of some of the key challenges and best practices of government contracting.

To get started, spend some time examining where contract dollars are spent in your area and which companies are winning contracts. The databases at www.usaspending.gov and www.fedspending.org contain a wealth of free information.

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Part 1: Strategy Assessment: In, Out and In-Between

All proceeds from this seminar will be donated to Fisher House, a charity that serves military and veterans’ families in their time of need.

Military actions are well planned with an entrance strategy, mission objective, and an exit strategy that provides closure and allows for success. The process of establishing and running your business should be much the same. How do you want to go to battle, what are your battle plans – short and long-term – and when you are ready, how do you disengage?

We have assembled a panel of experts in investment banking, global legal issues, specialty tax accounting and a contractor experienced in M&A transactions to explore the pros and cons of various organizational and operating strategies that can lead to your success.

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Cherry, Bekaert & Holland, L.L.P. (CB&H), one of the largest regional public accounting and consulting firms headquartered in the Southeast, is pleased to announce the addition of Robert Farquer as Senior Consultant to the Government Contractor Services Group.

Bob is a Certified Public Accountant with over 30 years government contract accounting experience. As a Senior Consultant in the Hampton Roads practice, he concentrates in providing contract consulting services to government contractors.

Bob consults in all areas of government contracting and has extensive knowledge of Federal Acquisition Regulation (FAR) and its application to government contractors, particularly in the area of cost allocation. He specializes in Cost Accounting Standards rules, standards, and regulations, with over 10 years experience.

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The IRS has released guidance for biotech, medical device and pharmaceutical companies interested in the Qualifying Therapeutic Discovery Project Credit (the “Credit”). Enacted under recent Health Care Reform legislation, the Credit provides companies with a tax benefit up to 50 percent of their qualified investment in qualifying therapeutic discovery projects for tax years beginning in 2009 and 2010. A very limited amount of funds are available for this highly competitive credit.

According to IRS Notice 2010-45, companies applying for the Credit will be required to submit the new Form 8942. Form 8942 will be issued by June 21, 2010 and is due no later than July 21, 2010 for the 2009-2010 allocation round.

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The Hiring Incentives to Restore Employment (HIRE) Act provides qualified businesses with a new tax credit for retaining certain qualified employees. This provision is intended to encourage businesses and tax-exempt entities to hire and retain employees, and is generally applicable for 2010.

CREDIT AVAILABLE
For each retained worker, a qualified employer’s general business credit is increased by the lesser of:

• $1,000, or
• 6.2% of the retained worker’s wages during a 52-week consecutive period

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Taxpayers who owe delinquent Pennsylvania taxes have until June 18, 2010 to take advantage of the Pennsylvania Tax Amnesty program. The Amnesty program waives all penalties and half of the interest for any delinquent taxpayer, so long as they submit the application by June 18th.

“The June 18 deadline was set by law – it will not be extended,” according to Pennsylvania Governor Edward G. Rendell. “Taxpayers should avoid the last-minute rush and apply now, because after June 18, not only does this offer disappear, but an additional 5 percent penalty is tacked on to all outstanding tax delinquencies.”

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The Hiring Incentives to Restore Employment (HIRE) Act provides a Payroll Tax Holiday for employers that hire and retain previously unemployed workers. This provision applies to wages paid beginning after March 18, 2010, and ending on December 31, 2010.

Qualified contractors are forgiven their 6.2 percent share of the “old age, survivors, and disability insurance (OASDI)” component of Social Security payroll taxes for qualified employees performing services in a trade or business.
A qualified individual is any individual who:

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• begins work for a qualified employer after February 3, 2010, and before January 1, 2011;

Join Cherry, Bekaert & Holland, L.L.P. for a seminar on the strategies of pricing to win. This seminar will emphasize the importance of accurate and timely product or service costing and proposal pricing and the role your indirect rate structure plays in the management decision making process, the maximization of cost recovery, the improvement of your competitive position and in regulatory compliance. We will also explore the “bid no bid” process, how to respond to RFPs, the impact of contract type on pricing and techniques for BAFOs/FPRs.

Join us as we discuss:

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CB&H extends its congratulations to Audit Partner Kurt Miller, winner of the National Contract Management Association (NCMA) 2009 Charles J. Delaney Memorial Award. Given to an outstanding article in the field of contract management, Kurt is recognized for his work on the article “The Rising Trend of Government Contracting by Nonprofits.”

Measured against high standards of usefulness, timeliness, validity, originality and quality of writing, the article originally appeared in the June 2009 issue of Contract Management magazine. Kurt will formally receive the award at the NCMA World Congress 2010 in July.

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Join Cherry, Bekaert & Holland, L.L.P. for a seminar on the strategies of pricing to win. This seminar will emphasize the importance of accurate and timely product or service costing and proposal pricing and the role your indirect rate structure plays in the management decision making process, the maximization of cost recovery, the improvement of your competitive position and in regulatory compliance. We will also explore the “bid no bid” process, how to respond to RFPs, the impact of contract type on pricing and techniques for BAFOs/FPRs.

Join us as we discuss:

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• Importance of product and service costing