Preparing for the CMMC Requirement
Between the fall of 2020 through 2025, all contractors and suppliers wishing to do business with...
In addition to efficiently delivering services that meet client needs, government contractors must follow a litany of compliance guidelines covering everything from timekeeping to security, incurred cost, and more.
These stringent standards can represent a significant burden and risk for government contractors. The cost of not complying can lead to fines, billing withholds, or lost certifications and contract bids. If the non-compliance is deemed very serious, it can even result in jail time.
That’s why it’s crucial to have a system in place designed with GovCon in mind. Unanet’s comprehensive ERP solution, purpose-built for GovCon, comes outfitted with all the tools you need to ease the compliance burden and gain confidence that nothing will fall through the cracks.
The Defense Contract Audit Agency (DCAA) is a vital part of the acquisition process for the Department of Defense (DoD) and certain other agencies. Their primary function is to ensure taxpayers’ money is spent responsibly by auditing agencies who perform acquisition and contract administration work for the US Government. Unlike other regulatory agencies, the DCAA only audits contractors.
The DCAA hold a tremendous amount of influence over the acquisition process because they communicate with the contracting officer (CO) and make recommendations that help the CO determine the price of the contract.
For more information on how to thoroughly prepare for impending audits, visit the DCAA website or watch the video below.
The Federal Acquisition Regulation (FAR) standards are the holy grail of acquisition. They are the primary set of rules governing how the federal government procures products or services, designed to help agencies minimize cost, improve service quality, fulfill public policy objectives, and generally conduct business with integrity and fairness.
GovCons working with the DoD must demonstrate an ability to comply with the various standards and provisions or show they will be able to do so by the time they are awarded the bid.
Failure to abide by any or all of the standards puts a GovCon at risk of losing a winning bid, having an existing contract cancelled or amended, or incurring fines and other financial penalties.
One of the more challenging elements of a GovCon’s business, Cost Accounting Standards (CAS) are 19 rules that help government agencies
determine costs on negotiated contracts. The
regulations affect contracts specifically, rather than contractors as a whole.
CAS was created to build consistency in how larger defense contractors and subcontractors manage cost accounting. It also establishes regulations that require contractors to disclose their cost accounting practices in writing.
Contractors with CAS-covered contracts must monitor their bidding, booking, and billing to ensure each is consistent with their written cost accounting disclosures prior to winning a project.
As a leading IT products and services firm, Array Information Technology needed a user-friendly accounting system that would support DCAA Compliance. They also wanted a system that would provide real-time data and reporting to all 15 branches to make informed company decisions. Deltek GCS did not fulfill their requirements, so they looked to Unanet for help. After the implementation, Array can now create real-time reports for managers, return accurate data, and successfully complete a DCAA audit.