Government Contracting Industry Specific Consulting Services

Government Contractors face a myriad of issues and challenges that most other businesses do not face.  The various types of audit a company faces as well as its negotiating tactics and techniques makes doing business with the government a very intrusive process.  Having advisors that have been through this and can successfully navigate through the process can be of tremendous benefit to your organization.  Some examples of these services follow. 

Cost proposal preparation and pricing strategies

The likelihood of financial success under a government contract is greatly enhanced with careful planning and proper proposal strategies.  Contractors often require resources and expertise beyond what the company has in-house as it pertains to proposal preparation and contract negotiations.  We have assisted large and small contractors with:

•           Management of the proposal process

•           Pricing and cash flow strategies

•           Development of the cost estimating model and the actual cost proposal

•           Ensuring compliance with acquisition regulations and contractual matters

•           Identification of contractual risks

•           Support during contract negotiations

•           Assistance during the proposal audit

Contract negotiation and administration

As part of the negotiation process, and subsequently during contract performance, we assist companies with:

•           Cash flow matters

•           Regulatory and contract compliance

•           Minimization of cost disallowances

•           Identification of constructive changes

•           Change order/modification pricing and negotiation 

Indirect cost rate evaluations and optimization

Optimizing a company’s indirect rates can lead to greater profitability and cost recovery in its contracts.  Our team of costing experts will:

•           Analyze the current methodologies utilized or contemplated

•           Apply our knowledge of “best practices” of comparable companies.

•           Determine the appropriateness of utilizing value-added rates and multiple overhead rates. 

•           Prepare a cost impact analysis of proposed changes

•           Assist in the preparation of disclosure statement changes

Cost allowability and allocability

The allowability and allocability of indirect costs can have a material impact on the profitability of contractual work.  We carefully analyze these costs to determine their allowability and allocability under the Federal Acquisition Regulations and/or Cost Accounting Standards, as applicable.  We help clients interpret the applicable regulations and will provide the necessary defense when costs are questioned.

Government audit liaison

Our team includes experts that have been successfully rebutting DCAA and other government auditors their entire careers.  In addition, one of our team members is a veteran DCAA official with more than 30 years of experience in government audits.  With extensive specialized knowledge in this area, we successfully reversed many proposed cost disallowances, including matters detailed on Forms 1.  In addition, as part of our services, we perform a simulated incurred cost audit to ensure timely identification of issue before they even reach audit stage.  This early identification can greatly assist in achieving allowability of these costs.

We have served as audit liaison for government audits such as:

•           Provisional billing rates

•           Cost proposals

•           Incurred costs

•           Termination proposals

•           Contract closeouts

•           Defective pricing matters

GSA Schedule and Other Multiple Award Schedules

The usage of GSA Schedules for services has exploded over the past decade.  This trend is expected to continue for the near future, especially as various Agencies introduce their own form of multiple award schedules.  Our team of experts can assist with:

            •           Proposal preparation and pre-award contract negotiations

            •           Pricing strategies

            •           Schedule maintenance services

            •           Defective pricing and price reduction matters.

SBA and 8(a) matters

Participation in set-aside programs such as the 8(a), Service Disabled Veteran, small business, and woman-owned programs, can be of tremendous benefit to increasing a company’s revenue.  We are intimately familiar with the SBA regulations and the application of these regulations to companies and their situations.  Our expertise in this area has lead to us being featured columnists in the publication “Set Aside Alert,” a monthly subscription newsletter devoted to the issues of set-aside contracting.

Incurred cost submissions

When a company has significant dollars tied up in unbilled receivables, timely completion of its incurred cost submissions is imperative to having these funds released.  Sometimes companies are unable to complete these submissions in timely fashion.  Failure to file timely submissions may cause contracting officers to make a unilateral determination of your company’s indirect rates.

We have assisted many of our clients with the preparation of incurred cost submissions and with excellent results.  Our ability to identify questionable costs and to prepare proper defenses during the preparation stage of the submission allows for a much smoother audit process and greatly reduces questioned costs.

Executive compensation reviews

Executive compensation has come under tremendous scrutiny in recent years due to high levels of compensation provided to executives of privately-held organizations.  Seeing this as an area of contractor abuse, DCAA has formed a team of experts that handle challenging the reasonableness of executive compensation.

Once a reasonableness challenge has been made by DCAA, it is up to the contractor to defend the company’s position.  We possess first-hand knowledge of the government’s strategies for challenging compensation and have successfully defended many such challenges.  We have amassed a tremendous amount of data which can be utilized to support executive compensation levels.

Disclosure statements

CAS disclosure statements are required for certain large contractors.  This applies to both defense and non-defense contractors, as well as for certain not-for-profit entities, and Colleges and Universities.  We have prepared many disclosure statements as well as performed impact analysis for changes in cost accounting practices.  We can also discuss the possible impacts of anticipated changes prior to their implementation to gain a greater understanding of the proposed change.

Compliance and self-governance programs

Government contractors are responsible for designing and implementing compliance and self-governance programs.  Working closely with your attorneys, we can help you design and implement effective compliance and self-governance programs that are aligned with the applicable laws and acquisition regulations.  We can help you:

•           Prepare written policies and procedures

•           Design and implement a system of internal controls

•           Develop training programs for employees

•           Provide internal audit services and support

Budgeting and forward pricing

Budgeting is one of the most critical, yet overlooked, aspects of running a profitable business.  Integration of company-wide, contractual, and indirect rate budgets within the company’s accounting system can provide the necessary financial tools to properly manage contracts and the company’s business.

We help companies prepare these types of budgets and integrate them with the company’s overall goals and objectives, as well as its accounting and reporting system.