As a federal contractor, getting a handle on COSTS is key to PRICING so you can win.
It’s frustrating not to have financial information you need to make decisions. Like not being able to tell which contracts are making money and which ones are losing money.
Or, knowing the billing rate that the prime “suggested” to you, can you determine what pay rate you can offer a prospective employee and cover all your costs.
Federal Contract Accounting has its own lingo: FAR 31, Unallowable Costs, What goes in Fringe and Overhead and G&A, Labor Categories, Cost of Money, CLINS, SLINS, ACRNS, Burdens, Weighted Guidelines, Multipliers, Provisional rates, SF1408 DCAA PreAward Survey, Incurred Cost Submissions, Indirect rates, Fringe on Direct Labor included in Overhead pool or base?
In DCAA’s Information for Contractors, the section on accounting system requirements implies that you don’t have to have an operational system in order to bid. But these days, RFPs are coming out asking you to produce a letter from DCAA showing your accounting system as adequate. You as a contractor cannot call DCAA and get them to do an accounting system review for you.
The biggest pressure is coming from Prime Contractors. Risk averse, they don’t need small businesses on their teams that don’t understand DCAA Compliance and don’t have the systems in place. They don’t have time for companies that are not ready.
Your reason for having an accounting system that meets DCAA Compliance is not just to pass an audit. You need it so that you know what your costs are, and have an idea of what “the going rates” are and how your actual costs plus budgets compare to the market.
At Florida GovCon Summit on February 28 and March 1 in Orlando, we’ve got tons of topics – and we just had to include one on Cost and Pricing. You’ll be drinking from a fire hose hearing from Traci Shepps, Wayne Leland and Rich Wilkinson about what it takes to price competitively and stay profitable in federal contracting.
WANT MORE? Join us in Orlando at the Florida GovCon Summit – click here to go to the Event Website.
Message me if you need more info!