Contractor Business Systems & Internal Controls

We understand that contractors need compliant cost accounting systems that provide meaningful and timely financial information. Our expertise in cost and financial accounting, business information systems and government contracting enables us to design compliant systems/processes. We help our clients solve myriad government cost accounting challenges by providing the following types of services:

Accounting system assessments

• Accounting system adequacy reviews - SF1408
• Mock accounting system audits DFARS 252.242-7006

Policy, procedure, internal control and documentation evaluation and design

• Billing system
• Labor accounting
• Indirect cost accounting
• Other direct costs
• Control environment
• Compensation system

Our professionals have decades of experience assisting contractors with their purchasing system compliance needs. We have examined procurement compliance from our client’s perspectives. And, we’ve examined issues from the DOD’s perspective through contributions to the Section 809 Panel’s recommendations on supply chain management. So, we know the procurement regulations, why they exist and how the government reviews contractor systems for compliance. We frequently help our clients solve their most complex procurement compliance challenges by providing the following types of services:

Strategic procurement compliance support

• Defining “procurement system” scope, both organizationally and transactionally
• Policy and procedure reviews and development
• Procurement process analysis and streamlining support
• Cost and price analysis assistance
• Subcontract negotiation and documentation support
• Subcontract administration and procurement compliance training

Government contractor cost estimates/proposals face difficult scrutiny, and if done poorly, can result in unsavory outcomes. Our professionals understand government contract pricing and help clients develop consistent and compliant cost estimating systems. We help contractors comply with the government’s challenging and extensive cost estimating requirements by providing the following types of services:

Estimating system assessments

• Mock estimating system audits DFARS 252.215-7002
• Budgeting and planning system evaluation
• Process and internal control evaluation
• Policy, procedure and documentation development

Proposal pricing support

• Truthful cost or pricing data compliance (Truth in Negotiations Act – TINA)
• Pricing volume development, review and support

The Government Property Management System requirements are included in more contracts than most contractors may realize. In addition to its own unique requirements, the Government Property Management System has a natural interface with other systems such as purchasing, estimating, accounting and MMAS. Compliance with property system requirements is critical as the Department of Defense has shown recent, increased focus on managing its property.  Our experts help contractors comply with these requirements by providing the following types of services:

Property system review and audit readiness assessments

• Mock property system audits
• Policy and procedure gap assessments
• Process and internal control evaluation
• Property records review and compliance evaluation

The material management and accounting system (MMAS) is a government contractor system. MMAS is used for planning, controlling and accounting for acquisition, safeguarding, issuing and incorporating materials in production. MMAS have long faced scrutiny from government auditors seeking perfection in contractors’ manufacturing planning and production. The government’s MMAS criteria require many disciplines to function together smoothly for success, including estimating, purchasing, accounting and property management. We provide the following services to help government contractors design processes to seamlessly comply with MMAS and navigate audit scrutiny:

MMAS review and audit readiness assessments

• Mock MMAS audits
• Policy and procedure gap assessments
• Process and internal control evaluation
• Inventory costing/accounting review
• Material charging and transfer practices review