Find it before DCAA does.
Direct entry for contractors with active DCAA exposure or significant CAS coverage. FAR Phase 1 maps how contracts, facilities, and assets connect, and reads both what threatens you and what you are leaving unclaimed.
A finding you surface yourself is a different conversation.
Cost-accounting exposure does not stay quiet indefinitely. It surfaces in an incurred cost audit, in a rate negotiation, or in a disclosure statement review, and by then it is being characterized by someone else.
Phase 1 is a partner-led assessment of your federal contract posture and your fixed-asset position, read together at summary level: the compliance exposures your current posture carries, and the recoverable positions it leaves on the table. The same records DCAA audits set your federal tax position. Phase 1 reads them once, for both.
What Phase 1 establishes.
Which FAR text actually governs each contract.
Cost allowability under FAR Part 31.
Government property and title vesting.
CAS applicability and full coverage. The two coverage thresholds set by the FY2026 defense authorization act are not in the same posture: the applicability figure was amended into the statute itself and took effect on enactment, while the higher full-coverage figure is directed but still awaits its implementing rule. We read your contract population against both, and against the transition.
Your indirect-rate structure.
The asset side: depreciation method, life, convention, and bonus treatment, reconciled book to cost to tax where contracts are CAS-covered.
One report, every finding sourced.
A single FAR Phase 1 Report, delivered as a PDF, with every finding carrying the authority it rests on. It is an assessment: where a finding calls for a standing control or prior-period recovery, that work is scoped separately.
Two delivery tiers. One fixed fee.
FactorTax delivers the analysis and the filing-ready documentation, built to withstand examination. Your tax provider implements it.
FactorTax delivers the study and implements it end to end, preparing and filing the accounting-method change and signing as practitioner of record under Treasury Circular 230.
The engagement is a single fixed fee, set before work begins. No ranges, no hourly billing, no contingency pricing.
For contractors under $50M, start with the Diagnostic.
Where the fact pattern is less concentrated, the Diagnostic is usually the better first step. A scoping conversation settles which one fits.