Strategic Consulting Solutions, Inc.

Current Issues For Government Contractors

The planning for the SCS 2015 Annual Government Contracting Seminar is well under way, and as we’ve planned, we’ve compiled a list of topics that cater to the immediate interest of government contractors. With this list, our goal is to facilitate an informative and relevant seminar. Thus far, we’ve compiled a pretty outstanding list, and this year’s seminar topics will include:

  • DCAA Current Issues
  • Banking for Government Contractors
  • Procurement Process
  • Cyber Security
  • Common Challenges that Government Contractors Face (panel discussion)

So what are some of the challenges that contractors run into?

Pricing, in this current environment, is a big issue we often hear about. Oftentimes, procurements are ‘Low Price technically acceptable,’ which means you’ve got to shave your pricing as much as possible to have a chance at winning. This is obviously very difficult for small businesses to implement. So, how do you do this and still be profitable? There’s no black and white answer, but some people have shared strategies by covering all direct costs, plus fringe, then adding a factor to contribute to their G&A. While this may show they’re losing money when all indirect costs are fully applied, they now have additional work to help cover the fixed indirect costs that they are incurring– with or without contracts. While this can be a risky strategy, it can be effective for some companies.

Other challenges are solicitations that request or prefer an approved accounting system, prior to responding to the solicitation. Many small contractors have never had an accounting system audit. This is because the only way to trigger an audit is when the Contracting Officer requests the audit, based on the proposal submittal. Depending on how stringent the requirement is, contractors can complete the Pre-award Accounting System Adequacy Checklist to briefly describe how they meet the objectives of a compliant accounting system. That document may help support the capabilities of the system. Additionally, it may be wise to have a third-party do a similar assessment of the accounting system.

What are other issues do you face in the government contracting arena? We welcome all input as we plan our annual seminar; your input helps us put together the most informative panel possible!

At our seminar this October, we hope to connect and speak with you about the ever-changing and ever-complicated government contracting arena. For more information on this upcoming event, click here. Be sure to register soon, as early registration ends September 21, 2015.

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