McNew & Associates, Inc. Blog

January 13, 2012, 7:26 PM
Filed under: Uncategorized | Tags: , , ,

A recent article in the National Contract Management Magazine highlighted that trends by the Federal Government to bundle many requirements has made the ability to compete at this level very challenging for smaller companies.  As such, many of these companies are now considering joint ventures as a way to pull resources together to meet the larger requirements being solicited.  In many cases, these Joint Ventures are formed as an “unpopulated JV” where a separate Limited Liability Company (LLC) is created. Under this arrangement, the founding companies enter into a subcontract with the LLC to fulfill the prime contract requirements. 

The challenge with an Unpopulated JV/LLC arrangement has always been “who’s in charge” in respect to policies, procedures, cost accounting, contract administration, etc.  The unpopulated JV/LLC, after all, is the entity the government is contracted with.  They will expect the same level of contract administration functions and financial management as from a populated company. So what is a Unpopulated JV to do?

The current trend to solve this issue is to outsource the contract management, performance reporting, cost accounting, compliance responsibilities, etc, to a third party “Business Service Integrator” (BSI). The BSI has many advantages, which include:

1)            Proprietary information is protected and controlled

2)            Ensures “one face” contract administration/financial management to the government

3)            Policies and procedures are established for the LLC

4)            Cost Accounting Standards for the LLC are established and maintained

5)            Cost and schedule information is efficiently captured and reported

6)            EVMS requirements are centralized for efficient and accurate reporting

7)            Contract administration is efficient and DCAA audit compliant

Bottom line, the Unpopulated JV/LLC is held to the same standards as a “populated” entity.  Through the use of a BSI, the founding companies can ensure efficiency while maintaining compliance in the myriad of prime contract, FAR, and DCAA requirements.

 Get the entire article at


4 Comments so far
Leave a comment

Hi there are using WordPress for your site platform?
I’m new to the blog world but I’m trying to get started and create my own.
Do you need any coding expertise to make your own blog?
Any help would be greatly appreciated!

Comment by Vedika Munshi

If you are going for finest contents like me, simply go to see this site everyday for the reason that
it gives quality contents, thanks

Comment by companies looking for people to work from home

One of the most important and the most beautiful part of a human body is the eye.
After this he is eligible to register in private and public establishments.
If you are able to do that and know that you will be going to that office for your glasses then you will be able to
pick out the glasses frames that you are going to want to purchase and write it down so you do not have to spend hours on end looking for the perfect
fit of glasses before you even have your appointment.

Comment by eyeglass frames for women greenpoint

Jimm Trippon CPA and his team offer comprehensive personal and business CPA
services for clients near tthe Bunker Hill Village area.
For most small non-farm businesses, the deductions are taken on a Schedule C (Profit or Loss From Business), or
a Schedule C-EZ (for those with deductions oof less
than $5000). An accountant can present you with an accurate
picture of your cash flow and places which need attention, to ensure that yoou kbow
where you can focus your efforts.

Comment by Rosella

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: