Government contracting advisory
Government contracting consulting services to help grow your business and maintain compliance
Doing business with the federal government presents a wide range of challenges and opportunities for contractors. Whether you are an established government contractor looking to sharpen your competitive edge or a commercial company looking to enter the federal arena, government contractors are best served by collaborating with experienced advisors who can weave their extensive government contracting experience through each business function to develop compliance solutions and protect business value.
Our government contract consulting professionals provide strategic compliance support to organizations that receive contracts, agreements and/or grant awards from federal government agencies. We help our clients solve their most challenging cost accounting, pricing and regulatory compliance-related matters throughout the contract or award lifecycle. We dive deep into the technical and regulatory compliance issues that challenge government contractors while helping to strengthen internal controls and create process efficiencies that meet the demands of the business. We help organizations navigate through complex federal compliance issues with confidence while implementing practical business solutions.
RSM offers an array of services to help our government contractor clients throughout the contract or award lifecycle
Contract cost accounting and pricing
Business systems and internal controls
Strategic support
Contract cost accounting and pricing
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Indirect cost rate support, including:
- Incurred cost submission (ICS)
- Provisional billing rates (PBRs)
- Forward pricing rates proposal/forward pricing rate agreement (FPRP/FPRA)
- Negotiated indirect cost rate agreement (NICRA)
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Indirect cost rate structure development, restructuring and strategic advice on indirect cost rate optimization
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Cost Accounting Standards (CAS) support, including:
- Disclosure statement preparation
- Cost impact proposal support
- CAS compliance assessments and audit support
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Pricing, cost volume and federal government proposal support
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Cost allowability and allocability assessments and advice relative to Federal Acquisition Regulation (FAR) 31, CAS and 2 CFR 200
Business systems and internal controls
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Defense Federal Acquisition Regulation Supplement (DFARS) business system support
- Accounting system
- Cost estimating system
- Contractor purchasing system review (CPSR)
- Government property
- Earned value management system (EVMS)
- Material management and accounting (MMAS)
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Pre-award accounting system support (SF 1408)
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Third-party business system assessments
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Federal government audit support and audit preparation (“mock” audits)
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Corrective action plan development and implementation support in response to government audit deficiency findings
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Policy, procedure and internal control assessments and documentation development
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Enterprise resource planning (ERP) system evaluation and implementation support
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Cybersecurity Maturity Model Certification (CMMC) assessments and advisory support
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Outsourced federal compliance and reporting
Strategic support
- Strategic cost structure and organizational design
- Federal entity design for new government contracting entrants
- M&A due diligence support
- Commercial item determinations
- Federal government audit lifecycle support from audit preparation through audit response strategy and corrective action development
- Contract claims, disputes and litigation support
- Request for equitable adjustment (REA) and termination settlement proposal development and negotiation support
- Service Contract Act (SCA) and labor law compliance support
- Federal government contract/grant risk profile assessments and strategic compliance roadmap development
- Federal government contract and subcontract negotiation support and subrecipient monitoring
- Contract closeout support and negotiations
Government contractors benefit from our industry- specialized experience in:
- As defense and space contractors continue to increase integrated solutions across commercial and government segments, balancing the impact of regulatory and cost accounting requirements with operational efficiencies is a complex task. International Traffic in Arms Regulations (ITAR), Export Administration Regulations (EAR), the Buy American Act and other DFARS business system requirements call for heightened controls. Continual Defense Contracting Management Agency or Defense Contract Audit Agency (DCAA) audits require ongoing, labor-intensive back-office support. Applying practical, industry-proven strategies that keep the compliance landscape in focus without overburdening commercial operations is a crucial component of achieving organizational goals.
- Government services companies must stay ahead of ever-changing and increasing regulations. Prospective planning to establish the back-office infrastructure and internal controls aligned to FAR provides a competitive advantage. Having an advisor who understands DCAA auditor hot-button issues and interpretation protocols provides a strategic blueprint tailored to your business and helps maximize growth.
- Knowing the federal contracting “rules of engagement” for construction contractors is key to success. Our construction team can help you quantify cost overruns and navigate the federal government’s contract change, dispute and claims process to successfully negotiate with your government customer and implement training, monitoring and reporting programs for prevailing wage requirements.
- Funding from agencies like the Department of Health and Human Services (HHS), Biomedical Advanced Research and Development Authority (BARDA), or National Institutes of Health (NIH) for R&D efforts, clinical trials and other life science endeavors offers an alternative source of funding to otherwise commercial companies. This funding comes with strings attached in the form of complex regulatory requirements that have substantial financial implications and audit risk exposure.
- Establishing a consistent cost accounting structure and pricing strategy, and designing an internal control framework incorporating a proven contract compliance infrastructure, provide the foundation for life sciences companies to bid, obtain and report on federal contracts. A strategic partner who understands the nuances of doing business with the specific agencies that fund life science organizations can help navigate the rigorous proposal process through contract award and execution while protecting the commercial entity from audit exposure.
- Federal contracts, grants and cooperative agreements serve as vital funding sources for many nonprofit organizations. Yet, the complex regulatory and cost accounting requirements outlined in 2 CFR 200 and various agency supplements increase programmatic risk and organizational costs. In many cases, federal awardees encounter restrictions on indirect cost recovery in program budgets, posing a significant challenge in meeting compliance, audit and programmatic requirements effectively.
- Preparing NICRA or facility and administrative (F&A) costs is a routine but time-consuming requirement for government contractors. Compliant submissions require knowledge of 2 CFR 200 Subpart E and applicable appendices and data collection from multiple sources to capture current, accurate and complete information compliantly. Our team of experienced advisors can help you prepare, defend and negotiate compliant indirect rate packages with federal government contracting/agreement officers.
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