Government Contractors

Challenge

Federal contractors must adhere to a myriad of regulations, including the Federal Acquisition Regulation (FAR), Defense Federal Acquisition Regulation Supplement (DFARS), the Cost Accounting Standards (CAS), and various agency-specific rules. Defense Contract Audit Agency (DCAA) audit oversight performs a variety of specialized contract audits with Administrative Contracting Officers performing 71 contract oversight duties. Compliance failures can result in hefty fines, contract termination, and damage to a company’s reputation.

Opportunity

GRF’s team leverages prior DCAA auditor experience to facilitate liaison and provide interface. Moreover, members of our team have also worked directly for government contractors and understand the regulatory environment and the risk of government audit. We can proactively prepare your company to attain an adequate cost accounting system including the retention of the appropriate supporting documentation when an audit occurs.

Challenge

The federal bidding process is notoriously complex and time-consuming, and it is not easy to prepare a proposal that complies with DCAA audit requirements. Bid and proposal requirements vary based on the contract type, whether it be fixed price, time and material or cost reimbursable. If certified cost or pricing data is required, government contractors must be careful not to be hit with a defective pricing finding.

Opportunity

GRF helps clients develop the appropriate cost and pricing data that complies with FAR Subpart 15.4, Table 15-2 format and provides assistance to avoid potential defective pricing on fixed price contracts. Our team has the expertise to help clients with forward pricing such as forecasting labor and indirect cost rates for base and out-years.

Challenge

Federal contracts often operate on a reimbursement basis, which can create cash flow issues for contractors. Small and medium-sized enterprises (SMEs) may find it challenging to cover upfront costs, especially when payment terms can stretch up to 90 days or more.

Opportunity

GRF helps government contractors develop strong financial management practices that mitigate cash flow challenges. Utilizing invoice factoring, securing lines of credit, and maintaining healthy cash reserves helps manage any financial strain.

Challenge

Federal contractors must comply with stringent cybersecurity requirements, such as those outlined in the Cybersecurity Maturity Model Certification (CMMC). Implementing these measures can be costly, with estimates for achieving CMMC Level 3 ranging from $50,000 to $250,000.

Opportunity

Companies that achieve high levels of cybersecurity certification not only comply with federal requirements but also protect themselves against cyber threats. GRF helps clients enhance their reputation and trustworthiness, making them more attractive to clients.

GRF is a Registered Practitioner Organization

GRF has been approved by the Cybersecurity Maturity Model Certification Accreditation Body (CMMC-AB) as a Registered Practitioner Organization (CMMC RPO). This designation enables GRF to support organizations within the defense industrial base (DIB) during their CMMC compliance journey.

Challenge

The federal contracting market is highly competitive, with thousands of firms vying for the same contracts. Small businesses, in particular, face challenges in competing against larger, more established companies.

Opportunity

GRF guides small businesses to take advantage of set-aside programs, such as those for women-owned, veteran-owned, and minority-owned businesses. Certified small businesses can gain access to exclusive contract opportunities. Additionally, forming strategic partnerships and joint ventures with other firms can enhance capabilities and competitiveness.

Challenge

Federal contractors are subject to the whims of political and economic changes, such as government shutdowns, budget cuts, and policy shifts. These factors can disrupt contract execution and impact long-term planning.

Opportunity

GRF helps businesses looking to diversify their client base beyond federal contracts to reduce dependency on government spending and mitigate risks. Our team provides guidance as firms diversify into the commercial sector with accounting processes that integrate with government compliance requirements and employ a single-use G&A with overheads for different business lines. We also keep clients informed about the evolving risk landscape and technology trends to help them anticipate changes and adapt proactively.