The certified public accountants (CPAs) at Diener & Associates help government contractors with the request for equitable adjustment process, which must be based upon one of the Federal Acquisition Regulation (FAR) provisions. If your organization has performed work for the government that is outside the established contract, then you may be entitled to fair compensation for the work and resources through a request for equitable adjustment.
What Is A Request For Equitable Adjustment?
A request for equitable adjustment (REA) is submitted by the government contractor when they perform services or supply goods that were not included in the original contract. The additional work outside the contract requirements requires labor, time and resources on behalf of the contractor, and the REA is submitted to seek fair compensation for the additional work. If a request for equitable adjustment is denied, then the contractor can submit a claim.
Things To Know About Requests For Equitable Adjustment
It is important to understand the REA process before submitting the request to ensure there are no issues with the submission that could lead to a denial. The following are four key things to know about sending a request for equitable adjustment:
The Request Must Be Based On A FAR Provision
The request must be based on one of the nineteen provisions established in the Federal Acquisition Regulation (FAR). If the REA does not mention the provision upon which the request is based, then it will almost certainly be denied by the government agency. An experienced CPA firm can help determine which provision the REA falls under.
A Detailed Explanation With Facts Is Required
All REAs must be based on claims that can be proven by the contractor. Of course, this is typically easy to do, particularly if the contractor has a proper accounting system that documents their finances and work processes. The contractor should also provide a detailed explanation of the reason for the request as well.
Exhibits And Attachments Strengthen Your Case
An exhibit refers to any piece of evidence that shows that additional work was requested that is not included in the original contract. An exhibit or attachment may also prove that the requested work was completed, along with showing the costs associated with the additional work that was requested.
REAs Should Be Submitted Within 30 Days
Timing is very important when submitting a request for equitable adjustment. Government contractors have within 30 days after being awarded a contract to submit an REA. If the request is received by the federal government after the 30 day period, then it will most likely be denied.
Why Work With Diener & Associates For REA Concerns
Diener & Associates makes the REA process easy for your business. We ensure you know precisely what needs to be done to give yourself the best chance possible at receiving fair compensation after your business has performed the requested work outside the government contract.
Contact Our Accounting Firm Today To Start The Process
Speak with one of our CPA professionals if your business needs to submit a request for equitable adjustment. We can advise you on the process of doing so and ensure it is properly submitted so that you can receive the fair compensation you deserve for your goods or services. If you require assistance with submitting a request for equitable adjustment, give us a call at 703.386.7864 or schedule a consultation online today.