Chess Consulting professionals have a long track record of success assisting clients throughout the life cycle of a government contract, including pre-award, post-award, and dispute-related matters. We also assist clients with respect to other regulatory compliance matters.
Federal Acquisition Regulation and Cost Accounting Standards Consultation
The Federal Acquisition Regulation (FAR) cost principles and Cost Accounting Standards (CAS) govern how government contractors account for, allocate, and bill costs on federal contracts. Noncompliance can lead to audit findings, cost disallowances, penalties, or reputational risk. Chess Consulting helps clients interpret and apply FAR and CAS requirements, address cost allowability and allocation issues, and strengthen accounting systems, processes, and internal controls to support compliance and audit readiness.
Compliance Assessments and DCAA Audit Readiness/Response
The Defense Contract Audit Agency (DCAA) and other government oversight bodies evaluate contractors’ compliance with federal cost principles, accounting standards, and internal control requirements. Insufficient documentation, weak controls, or system deficiencies can result in audit findings and required corrective actions. Chess Consulting supports clients through compliance assessments, gap analyses, mock audits, and audit response support, helping contractors prepare for audits and respond to findings with defensible positions and corrective action plans.
Change Orders, Claims, and Termination Settlement Proposals
Government contract changes, disputes, or terminations can significantly affect project performance and financial outcomes. Poorly supported claims or settlement proposals may result in unclaimed costs, delayed recovery, or unfavorable outcomes. Chess Consulting assists contractors and their legal counsel in identifying and pricing constructive change order claims and preparing termination settlement proposals.
Business Systems Compliance Reviews
The Department of Defense Business Systems Rule applies to CAS-covered contracts and imposes financial penalties for material weaknesses in key contractor systems, including accounting, estimating, purchasing, MMAS, EVMS, and property management. Deficiencies can disrupt operations and negatively impact contract performance and cash flow. Chess Consulting helps contractors assess, strengthen, and document their business systems, ensuring policies and procedures withstand scrutiny from government agencies and third-party auditors.
Emerging Contractor and Grantee Compliance
Emerging contractors and grantees face complex government requirements that differ significantly from commercial practices, including FAR, DFARS, CAS, and 2 CFR 200. Misunderstanding these rules can lead to compliance issues throughout the contract lifecycle. Chess Consulting helps organizations navigate government requirements through pre-award compliance assessments, accounting system and indirect rate consultation, incurred cost submissions, and ongoing compliance guidance tailored to their growth stage and strategy.
Incurred Cost Submissions
Government contractors with cost-reimbursable and time-and-materials contracts are required to submit an adequate Incurred Cost Submission (ICS) to their cognizant federal agency within six months of their fiscal year-end. The ICS calculates actual indirect cost rates and presents cost, billing, and other contract-related administrative data to support contract closeout and government review and approval of claimed costs. Chess Consulting works closely with clients to prepare and review ICSs, helping ensure accurate submissions and successful audit outcomes.
Cybersecurity Assessment and Compliance Services
Federal contractors must comply with cybersecurity requirements to protect Controlled Unclassified Information (CUI), including NIST SP 800-171, 800-53, and the CMMC framework. Noncompliance can result in lost contract opportunities, enforcement actions, or reputational damage. Chess Consulting helps contractors understand applicable cybersecurity requirements and conducts gap assessments to evaluate policies, procedures, and practices, supporting readiness for audits and third-party assessments.
Commercial Pricing and GSA Multiple Award Schedule Contracting
The federal government acquires commercial products and services to improve purchasing efficiency and expand the supplier base. Commercial acquisitions and the GSA Multiple Award Schedule program streamline procurements and reduce regulatory burden, but require careful attention to commerciality requirements, pricing, and ongoing compliance. Chess Consulting supports clients with commercial pricing determinations, compliance reviews, and reporting requirements, helping contractors successfully sell to federal agencies.
Special Investigations
Federal contractors are required to disclose credible evidence of fraud, conflicts of interest, bribery, or significant overpayments under FAR 52.203-13. Failure to comply with mandatory disclosure requirements can result in suspension, debarment, or other serious consequences. Chess Consulting assists contractors and their legal counsel with internal investigations, voluntary/mandatory disclosures, and remediation efforts, helping them navigate sensitive matters while mitigating legal, financial, and reputational risk.
Disputes and Expert Testimony
Contract disputes often require specialized expertise in government contract cost accounting, pricing, federal regulations, and damage analysis. In many cases, expert testimony is critical to effectively support a client’s position. Chess Consulting provides dispute resolution services, including cost/price analysis, request for equitable adjustment and claim preparation, forensic accounting, and expert testimony, helping clients present clear, credible positions in complex contract matters.
In April 2026, the Defense Contract Audit Agency (DCAA) released its Annual Report to Congress summarizing the Agency’s audit activities for Fiscal Year (FY) 2025. The report addresses DCAA’s audit performance and priorities across key audit areas, including Forward Pricing, Incurred Cost, Claims and Terminations, Business Systems, and audits related to Cost Accounting Standards (CAS) and Truthful Cost or Pricing Data (TINA).
On April 30, 2026, the Administration advanced a significant shift in federal contracting policy, one that contractors cannot afford to ignore.
At the center of this change are two converging actions:
1. New restrictions tied to Executive Order 14398 (DEI-related compliance)
2. A decisive push toward performance-based, fixed-price contracting.
Together, these moves signal a broader transformation in how the federal government evaluates contractor performance, compliance, and risk.
This Q1 Regulatory & Policy Newsletter provides a brief review of selected federal acquisition, regulatory, and oversight developments affecting government contractors during the first quarter of FY 2026.
On April 9, 2025, the Navy outlined aggressive goals to boost shipbuilding capacity—one Columbia-class and two Virginia-class submarines annually, along with advancing Ford-class carriers and Flight III destroyers. Meeting these targets requires expanding supply chains and overcoming workforce shortages that have slowed progress and created delays. To address these challenges, shipbuilders are accelerating outsourcing efforts. For example, Huntington Ingalls Industries (HII) recently moved major hull sections to Eastern Shipbuilding, while Austal USA partnered with Master Boat Builders to collaborate on Austal’s current programs, such as the Landing Craft Utility 1700 series. Additionally, in July 2026, Austal USA will open a new $750 million facility in Mobile to manufacture submarine modules.