What capabilities do GovCon compliance officers and operations managers need to maintain regulatory compliance?

With Cybersecurity Maturity Model Certification (CMMC) 2.0 now officially mandatory for government contractors (GovCons), compliance demands are rapidly intensifying. Yet CMMC is only one of many federal regulatory requirements. GovCons also face the Federal Acquisition Regulation (FAR), DCAA audits, and environmental, social, and governance (ESG) standards, all of which make compliance an increasingly complex area to manage.  

Compliance officers and operations managers are tasked with meeting these rigorous standards, which can quickly overwhelm resources, especially when managed manually. Let’s explore the essential capabilities you’ll need, from an operational standpoint, to efficiently maintain compliance in the face of growing regulatory demands – using insights from the 2024 GAUGE Report by Unanet and CohnReznick. 

Key statistics on compliance and audits 

Compliance challenges in government contracting are an ever-present consideration for your operations and compliance staff. The GAUGE Report reveals that compliance demands can be resource-intensive, with nearly a quarter of respondents reporting that they spend over 40 hours each month on compliance activities​. 

Compliance officers and operations managers must stay current with a host of requirements, from cybersecurity to ESG, and all while ensuring compliance efforts don’t drain operational resources. These challenges emphasize the importance of efficient systems to manage, track, and maintain compliance across various standards. 

Time and cost pressures are substantial when it comes to GovCon compliance. This workload highlights the critical need for streamlined processes, especially as organizations face frequent audits. 

Audits are constantly looming for many GovCons, with incurred cost submissions remaining the most commonly audited area, affecting about 26% of respondents, followed closely by accounting system audits (24%)​. Indirect rates, a frequent audit focus, remain a top challenge for GovCon companies, emphasizing the need for compliance officers and operations managers to establish robust tracking and documentation processes that can withstand rigorous scrutiny. 

Managing multiple compliance standards, such as CMMC, FAR, and DCAA, is a central responsibility for compliance officers and operations managers. The GAUGE Report found that 75% of GovCon respondents are regularly creating or updating compliance policies and procedures​.  

The role of AI in compliance 

Artificial intelligence (AI) is emerging as a significant aid in compliance management. Nearly 40% of GovCons responding to the GAUGE Report are either exploring or actively using AI to support compliance.  

AI tools can automate routine compliance checks, continuously monitor time and expense entries, and quickly detect data inconsistencies – tasks that would otherwise consume extensive manual effort. By reducing human error and speeding up compliance processes, AI can help your organization keep pace with increasing regulatory demands while allowing them to focus on more time on strategic work meant to grow the business. 

Preparing for increasing compliance demands 

Compliance demands are expected to grow in the coming years. ESG requirements are one such area, with 36% of GAUGE Report respondents anticipating that ESG compliance will impact their business within the next two years​.  

To keep up, compliance officers and operations managers should look to scalable, adaptable solutions that can accommodate new standards as they emerge, ensuring that the organization remains compliant and prepared for future changes. 

Audit preparedness 

For GovCons, audit readiness is crucial to avoid penalties and maintain a strong reputation. To prepare for audits, compliance officers and operations managers should implement robust tracking systems that log compliance activities in real time.  

Automated data collection and reporting tools help ensure that records are accurate, organized, and easily accessible, greatly simplifying the audit process. 

Compliance oversight 

Effective oversight allows GovCons to maintain a comprehensive compliance program. According to the GAUGE Report, larger GovCon companies, particularly those with revenues over $50 million, are more likely to prioritize compliance.   

Smaller companies, however, often rely on smaller teams or even a single individual. This highlights the importance of scalable, user-friendly solutions that make compliance management achievable without overwhelming resources.  

Whether your GovCon is big or small, you’ll need a reliable system to help you log, track, and maintain your data. Transparent, trackable processes help compliance officers keep a detailed view of all compliance activities and ensure nothing is missed.  

The capabilities GovCons need to maintain regulatory compliance 

So, what will your GovCon need to maintain compliance based on all this? Comprehensive compliance tools that deliver the following capabilities:  

• Automated checks
• Up-to-date templates 
• Cybersecurity measures
• A user-friendly interface 
  
• The ability to implement your system fast  

Having software with these capabilities in place will:  

• Reduce risks related to compliance 
• Help you gain peace of mind when an auditor comes calling 
• Keep your data and systems secure 

The tricky part is finding a system that has all these. That’s where Unanet comes in.  

How Unanet helps GovCon compliance officers and operations managers stay ahead 

Unanet equips compliance officers and operations managers with tools designed for today’s demanding compliance landscape. Offering automated compliance checks, real-time data tracking, intuitive interfaces, and secure cloud solutions, Unanet simplifies compliance management for GovCons. This is all backed by a highly responsive, U.S. based customer support team ready to assist you.  

These tools support compliance officers and operations managers in minimizing manual work, ensuring accuracy, and maintaining readiness for audits – all while helping GovCons keep pace with evolving regulations. 

Navigating compliance in GovCon is complex, but with the right capabilities, compliance officers and operations managers can meet these demands effectively and position their organizations for success. 

Looking to make business easy while freeing up more time to do the work that matters? Learn how Unanet can help. Schedule a demo today.