Gov Con Support
DCAA / DCMA Audit Readiness
We understand that regulatory requirements can seem overly burdensome. However, the impact of not complying can be financially catastrophic for your business. A recent study of a representative sample of over 50 companies resulted in the cost of non-compliance (business disruption, productivity losses, fines, penalties, and settlement costs, among others) being 2.71 times higher than the cost of maintaining or meeting compliance requirements. As your business grows, sometimes its diﬃcult to know when the right time is to start this process.
The Defense Contract Audit Agency (DCAA) is the agency responsible for Business System audits, such as Accounting (DFARS 242.242-7006), Estimating (DFARS 252.215-7002), and Material Management (DFARS 252.242-7004). The Defense Contract Management Agency (DCMA) is responsible for Purchasing (DFARS 252.244-7001), Property Management (DFARS 252.245-7004) and Earned Value Management (DFARS 252.234-7002) systems.
If you're in business with the Federal Government, you will likely be audited at some point in time, and our team of experienced professionals can help you make sure that you are prepared for a successful audit when that time comes.
Are you having issues keeping up with your Federal Contracts? Do you need expertise that your current organization just does not possess? Do you want a one stop shop to manage your deliverables? If so, this may be the service for you!
The objective of Contracts Management is to ensure the contract is performed satisfactorily and the responsibilities of both parties — the agency and the contractor — are properly discharged. Eﬀective contract management prevents, minimizes and resolves problems and potential claims and disputes.
Let our team of seasoned professionals help you manage all aspects of the contract lifecycle from pre-award to closeout.
Cost Volume & Proposal Support
Regardless of your size business, if you receive a Department of Defense (DoD) Request for Proposal (RFP), you must be prepared to meet each and every contract requirement and be able to complete the job on-time and on-budget. Bidding on DoD contracts can be a daunting task, but with the right experts specialized in preparing winning Cost Volumes for Department of Defense and Intelligence Community Customers, Kinetic can help your business submit a compliant and winning Cost Volume and Pricing Model.
Kinetic will work independently or in conjunction with your financial team to develop the Cost or Price Volume and the related proposal price to meet the requirements given by the client and facilitate the evaluation of the volume. We will develop price volume specific "Win Themes" and discriminators that work in conjunction with your overall win strategy, weaving these throughout the Price Volume to include the volume's Executive Summary. We ensure that your subcontractors receive target labor category rates and work costs in a timely fashion, and that you receive their price input in time for incorporation into your price.
DCAA Compliant Business Systems
A DCAA approved accounting and billing system gives Government Contractors an edge in competing for new contracts. You don't want to try to navigate this complicated area by yourself because a disapproved accounting and billing system could result in losing contracts and harming the company's reputation. Bottom line is...not getting the right DCAA support could be a very costly mistake.
Are you a contractor requiring a new accounting system that will require assessment for adequacy by the DCAA (Defense Contract Audit Agency)?
Does your recent contract award include a requirement to comply with 48 CFR § 252.242-7006?
Do you have an existing accounting system needing improvement?
Maintaining DCAA compliance is extremely tedious, complex, and diﬃcult. Most companies here the word 'audit' and cringe, but if you have a compliant system, there is no reason to fear. The DCMA is charged to ensure that you are managing your contract correctly, so having a DCAA compliant accounting system built by Kinetic handles this task for you, can allow you to focus on your direct work, and be comfortable with the knowledge that your system is compliant...with the backing of our experts.
If you don't know whether your system is compliant or not, contact Kinetic today about our compliance review oﬀerings.
Incurred Cost Submissions
The Incurred Cost Submission is a complex document and is very dependent on an eﬀective accounting system to provide the necessary information to complete the government submittal. We will prepare the proposal using a DCAA developed program called ICE (Incurred Costs Electronically). You are required to submit your proposal 6 months after the end of your fiscal year per FAR 52.216-7. Incurred Cost Submissions need to be completed and submitted to the government if you performed on one or more Cost Reimbursable and/or Time and Materials contracts anytime during your fiscal year.
Failure to provide an Incurred Cost Submission (ICE) may disqualify you from billing the government. If you depend heavily on the government for cash flow, disqualification from billing will create adverse results very quickly. You may also be subjected to Administrative, Civil and/or Criminal Penalties for not submitting your Incurred Cost Proposal to the government. For specifically unallowable costs included in your proposal, the government has the authority to not only disallow the costs but also to assess a penalty which can be up to two times the disallowed amount.
If the above is concerning at all to you, contact us today and let Kinetic take the worry out of the above for you.
Indirect Rate Development
Understanding your cost pool is vital for all Government Contractors to succeed in competitive bid situations and remain profitable. This critical understanding keeps you compliant with federal regulations and allows companies to set sustainable rates that drive growth.
One of the foundational building blocks for the Government Contractor's accounting system is the allocation of costs across contracts. This not only requires the identification of each contract and the deliverables within each contract,
but also the proper segregation of direct and indirect costs and the determination of cost pools. The number and composition of cost pools is determined by the contractor, not government regulation.
When preparing a final overhead rate (i.e. "Indirect Rate" or "Wrap Rate") submission, the amounts are clear, the contractor summarizes the actual expenses for the particular year, determines which are allowed and unallowable, and proceeds to summarize them in a format approved by the government. Submitting forecasted rates is a bit unclear. There is no pre-defined format, and the expenses need to be budgeted in advance. The expense pools and distribution bases used must produce an equitable distribution of indirect costs to the final cost objectives.
Evaluating and establishing your Company's cost pools is an absolute necessity to compete in the government contracting arena. Defining your pools and rates not only ensure you are compliant with government regulation, but also provide you with confidence in bidding jobs properly to maximize profitability.