Be Proactive, not Reactive

If you are contemplating contracts with the federal Government, or even if  you already have Federal Contracts, there are many things you can do to ensure you are compliant with Federal Regulations.

Consider only two of the many federal contract compliance requirements:

• If your contract or the solicitation for a proposal contains DFARS Clause 252.242-7005 Contractor Business Systems, your company must comply with Accounting System Requirements as outlined in 252.242-7006. Estimating System and Purchasing System compliance often applies.

• If your contract is valued above the Cost Accounting Standard threshold ($50M or $50M in net CAS-covered awards during the preceding cost accounting period), you have many other compliance requirements including the submission of a Disclosure Statement (Form CAS DS-1) describing your accounting system.

Being Proactive with Federal Compliance results in time and resource savings:

Business System	Proactive	Reactive
Accounting System	Consulting service performs pre-award Accounting System compliance assessment, addresses any deficiencies and assists with corrections and compliance training, resulting in accounting system compliance.  Time spent - 8-12 weeks, average	DCAA audits the system and corrective actions are needed. Reports to the Contracting Officer (CO). CO makes an Initial determination and requests corrective actions. Contractor submits a plan, makes corrections, and submits results. DCAA re-audits the system.  Time spent - 18 mos.. average
Estimating System	Consulting service creates a DFARs compliant Estimating System Manual based on the company's current processes, identifies gaps and recommends improvements, trains staff, and prepares a required internal monitoring plan.  Time spent - 8-12 weeks, average	Proposal or other audit identifies non-compliances in the contractor's estimating system. Reports to CO. CO makes an initial determination and requests corrective actions. Contractor submits a plan, makes corrections, and submits results. DCAA re-audits the system. Time spent - 18 mos., average

Being Proactive may result in: (1) Time saving / $ Saving; (2) Successful audit results; (3) Avoiding delays in contracting; (4) Avoiding withholds; (5) Developing knowledgeable employees; and (6) Allocation of proper resources. 

deClermont Consulting can assess your current state of compliance, the requirements for which your company is responsible, and provide actions to consider in your proactive journey.