As a Gov Con one of the most crucial aspects of government contracting is making sure you have an infrastructure that supports government compliance. Costs associated with keeping your organization compliant are in the range of 22-29% of your contract value and according to The META Group more than 90% of businesses still handle contracting manually, which means those percentages could be higher. Contract compliance can be the difference between contract successes or being suspended or debarred.
According to PWC primary costs of government contracting are in the area of infrastructure requirements preparation and documentation activities. The first being documentary cost can be the cost of implementation of processes to meet regulatory framework; the second is requiring employees to follow the process; and the third is collection, auditing and proving that processes were followed.
As stated previously, since the majority of company’s handle contract compliance processes manually. The bulk of those processes are handled via emails, phone calls, word processing changes to the SOP and manual sign-off’s. All those activities have cost implications associated with a person’s time. In order for your organization to get a handle on compliance costs, consider the following:
Automate as much as possible; look into investing in an automated business processing system to save time on redundant tasks. We have identified five (5) areas of your business where automation can reduce your compliance costs:
*Comprehensive Cost Accounting Software; make sure your software meets the DCAA standards of CAS and GAAP.
* Proposal Library System; Try investing into a system that not only gives you basic structures so you don’t have to recreate the wheel for every proposals submission, but can also integrate with your current systems so that you can populate current data.
*Customer Relation Management software; Having a system to manage your potential and current client relations should be a priority for every business. Project Management/ Program Management; Software to manage resources, time, and budget are crucial to delivery success.
* Inventory Management; Managing inventory in an automated way helps you accurately track costs and significantly increases business efficiency.
* Automating Payroll; Make sure you have a schedule to pay your employees.
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