HKA Partner Greg Bingham testifies at congressional hearing

On Tuesday, March 23, HKA Partner Greg Bingham testified at the House Small Business committee hearing regarding “The Interaction between the Paycheck Protection Program and Federal Acquisition Rules: What it Means for Government Contractors.”  During his testimony, Greg addressed relevant Federal Procurement cost issues, including:

• The impact of credits made in accordance with the FAR 31.205-5 Credits clause on payments under cost-reimbursement and fixed-price contracts.
• That credits associated with a forgiven loan should apply to contract costs in the same manner in which the loan funds were originally spent by the contractor. 
• The impact of credits on indirect cost pools and indirect cost rates.
• The relevance of final indirect rates for completed years to forecasted rates for future years, especially with respect to non-recurring events experienced in past years.
• How for many contractors 2020 and 2021 may be unusual / outlier years, further complicating the forecasting of indirect rates.

To view the video footage of Greg’s testimony, click here and go to minute mark 21:16. Greg’s pre-filed testimony is attached.