Many organizations look only to their own organizations when thinking contract management. However the reality is that the Prime Contractor is at risk for the performance of the contract by Subcontractors. Critical elements that need to be addressed to avoid any undue cost reductions or the fear for a “T4D” situation include Subcontract Management and oversight. By devising a management skill set that “controls” the subcontractor, adherence to the contracts terms and conditions is more likely and less likely to incur the wrath of the government.
There are a number of ways in which the government can harm the governmental contractor. One of which is determination of default (T4D) where due to the contractor (Prime or Sub) not performing to the contract. This is an area where there could be contact with the appropriate Contracting Officer (CO or KO) that could result in some mediation and adjustment to remedy the T4D. Another more detrimental method is the termination for convenience (T4C). Here as the word depict, the government may cancel a contract for their convenience. If this happens to any contractor, there are remedies that can and should be pursued to recover costs incurred. Having appropriate guidance is imperative to ensure the maximum compensatory remedy and possibly avoid a more negative stigma of debarment.
As a result of a termination or other negative governmental assertion, the proper assembly of documentation to include incurred costs and FAR references/citations is imperative to secure a position that is favorable to the contractor. Any potential damages inflicted upon the Prime of Sub should be addressed immediately with the appropriate knowledge and skill sets. CCS can provide services to the benefit of the contractor in most cases.
Contract Close Out
One of the most overlooked aspects from the standpoint of the contractor is the actual formal closeout of the contract. Most contractors are more focused on the actual performance of the contract rather than the closure of the same. The government however, has a duty to close out the awarded and performed contracts so that all costs incurred are properly reported and all monies are either paid to or recovered from the contractors. CCS can assist with the determination of whether funds are owed and available from completed contracts or if any obligation is due to back to the government.
Both upon and prior to award, there are many facets of negotiations that may surface that could result in a reduction of costs reimbursement or onerous clauses that may be inserted in the contract. CCS Contract Negotiators are aware of the impact of these potential changes and are skilled in addressing these issues pro-actively.
Contract and SubContract Management
With the pressure to keep general and administrative costs low, the ability to access the Contract Management Talent on an as needed basis is lucrative to the small and midsized organizations that are reluctant to employ these talented professionals on a full time basis. CCS has access to individuals who have been trained and certified in Contract Management.
Financial Services – DCAA
CCS services include acting as Liaison with the respective DCAA or DCMA Auditors to determine the best approach to resolving any issues that may be causing withholding of funds, cancellation of contracts or termination for convenience. CCS can review the DCAA requests and ensure that the proper data is provided as well as determining that the appropriate FAR Clauses are addressed.
Pre-Award Review and Assessment
Prior to the receipt of a government contract award, CCS can provide an assessment of the existing accounting system to ensure that the system properly accumulates and records data related to the pending contract.
Liaison/On Site Assistance
In the event of a DCAA visit, for example, a surprise floor check audit, CCS can provide on-site assistance to ensure that the requests are per FAR Regulations.
Financial System Review, Audit and Assessment
The DCAA follows a specific set of guidelines in its evaluation of an Acceptable Accounting System utilized to track activities related to the awarded contract. CCS will review contract documentation, data accumulation, and the actual accounting methods, procedures and controls that are in existence and determine that accurate and timely financial data is presented and properly segregated and reported.
Cost Pool/Burden Assessment
CCS can review the existing Cost Pool design, evaluate the appropriateness and determine if an alternate structure that should result in the maximum reimbursement from the government for valid documented expenses.
General Ledger Detail Review
The detailed review by CCS Problem Solvers is designed to ensure that the cost that have been incurred are properly categorized, documented and supported for the submission to the governmental agency for reimbursement.
Virtual Financial Services
Many small businesses and startups have limited funds and expertise to support the General & Administrative functions of an ongoing operation. CCS Staff can provide bookkeeping and accounting services to alleviate the burden of tracking “day to day” transactions for your small business.
The cost of a full time CFO can be somewhat onerous on the budget of a small emerging business. To reduce that strain, CCS can offer Virtual CFO and Controller Services rather than employing these assets on a full time basis. Our knowledgeable staff members are versed in general accounting process and procedures, GAAP, Governmental Contracting, and FAR Regulations that will provide you with accurate and timely report generation.
Incurred Cost Proposal
As required by the DCAA, companies that have or will be awarded Cost type contracts (e.g. Cost Plus) must complete a timely Incurred Cost Report and Submission. This report highlights direct project costs, burdens and fees CCS Staff have compiled these reports for a number of organizations. Preparation of the original budget report as well as the submission of actual results and follow-up of any DCAA or Agency comments are skill sets that CCS Staffers have garnered over the many years of their experience.
How many companies are we going to run into that require a Forward Pricing rate Proposal (FPRP) most are large companies. Maybe address this somewhere else or very.
Financial System Review
For both new companies dealing with the government as we’ll as established companies choosing to change or modify their existing systems, our knowledgeable staff can offer Pre-Award surveys, cost pool analysis, and other reviews to ascertain that the most beneficial structure is in place.