Intercompany Work Authorizations - Direct Contract Work
Contents |
Process Owner
Sr. Executive Corporate Contracts, CFO
Purpose
This document establishes the policy and procedure for bidding, booking and billing direct charge work transfers between either GovC Legal Entities (i.e. intercompany) or internally within a Business Unit (i.e. intra- company) in order to ensure consistency and compliance with the FAR.
Definitions
Business Unit - an operationally aligned grouping of GovC legal entities.
Legal Entity - an organization used by Business Units as a legal basis to enter in and issue legally binding contracts.
Intercompany Work Authorization - work performed for the same direct charge contract by two or more Legal Entities with more than one G&A cost pool.
Intracompany Work Authorization - work performed for the same direct charge contract by two or more G&A cost centers within the same Business Unit.
Direct Charge Contract - work undertaken and associated costs incurred and/or obligated in performance of contract services or the procurement of goods.
Issuing/Responsible Business Unit - The business unit operating under a legal entity responsible for the bid, contract, and performance of the contract with the customer.
Policy
It is GovC's policy to promote teamwork and provide opportunities for all business units. It is further to that policy that "make or buys" are performed before outsourcing work, so that GovC has evaluated multiple scenarios, providing the best value and least expensive price for a product or service. To that end, Intercompany and Intracompany work is highly encouraged.
IWAs
Responsbile BU
Contract Representatives are responsible for the issuance of IWAs to Performing BUs, with complete documentation to include all terms and conditions and ensure performing BUs are fully apprised of their obligations.
Performing BU
Responsible for capturing costs appropriately and reporting as required per FAR, CAS, or the contract. Responsible for meeting all terms and conditions of the intercompany authorization.
Business/Accounting Operations
Responsible BUs are responsible for assigning charge numbers to performing BUs.
Both Responsible and Performing BUs are responsible for the financial system entries to set up IWA Projects and to accurately reflect revenue recognition and receivables system compliance.
