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Government Contracting

Don’t Overlook Indirect Rates

If your firm wants to do business or contract with the government, it’s crucial to understand that compliance with the Federal Acquisition Regulation (FAR) and Defense Federal Acquisition Regulation (DFAR) frameworks is a must.

These regulations outline the guidelines and procedures that companies must follow when dealing with the government. As part of this process, firms are required to submit indirect rates as part of their cost accounting system, which can impact how much they can charge the government for their products or services. By carefully understanding and adhering to FAR and DFAR regulations, your firm can ensure smooth and successful business dealings with the government.

There are three types of costs to consider:

  1. Direct Costs
    1. FAR 2.101 – Direct costs are costs that can be identified specifically with a particular final cost objective.
  2. Indirect Costs
    1. FAR 2.101 – Indirect cost means any cost not directly identified with a single, final cost objective, but identified with two or more final cost objectives or with at least one intermediate cost objective.
  3. Unallowable Costs
    1. FAR 2.101 – Unallowable cost means any cost that, under the provisions of any pertinent law, regulation, or contract, cannot be included in prices, cost-reimbursements, or settlements under a government contract to which it is allocable.


Allowable vs. Unallowable

When it comes to government contracts, it’s important to differentiate between what constitutes an allowable cost and what doesn’t. Allowable costs are those that can be charged directly to a government contract or indirectly through assigned indirect rates. It’s critical to know the difference, as unallowable costs could result in significant financial penalties.

Understanding the components of indirect rates, including fringe benefits, overhead, G&A (general and administrative), material handling, and subcontractors, is also crucial to ensure the accuracy of cost allocation. In essence, by properly identifying, tracking, and charging allowable expenses to a government contract, companies can fulfill contractual obligations while minimizing the risk of non-compliance.

Prepare your Firm!

PCI is excited to offer an upcoming webinar series that will take a deep dive into all aspects of indirect cost rates and how your firm can best prepare for them. Throughout the series, we’ll cover topics such as types of indirect costs, calculating and billing indirect rates, and how to stay compliant with government regulations.

Join us for this informative webinar series and enhance your understanding of the often complex and confusing world of indirect cost rates.

5 Reasons Deltek ProjectCon Is A Must Attend Event

Deltek ProjectCon 2023 will be taking place from October 16th – 18th at the Gaylord Palms Resort & Convention Center in Orlando, FL. As a Platinum Sponsor of this event, PCI is excited to be a part of this incredible event!

Deltek ProjectCon is the ultimate event for project-based business professionals looking for inspiration, education and collaboration. This unique three-day conference is filled with learning and networking opportunities that you do not want to miss! Here are the top 5 reasons why you absolutely can’t miss out on this amazing event. Trust us, it’s going to be epic!

  • Expand your Knowledge and Skills

The conference is designed to provide attendees with the latest insights and best practices in all areas. With over 300 sessions, you’ll uncover valuable tips and tricks, gain insider insights into upcoming product developments and witness inspiring success stories from organizations like yours.  

Make sure you attend three must-see sessions hosted by PCI!

CPSPON-10 – Elevate Your Subcontractor Game: Mastering the Art of Subcontractor Management

CPSPON-11 – Mastering the Indirect Rate Reconciliation Process

CPSPON-12 – Simplify Your Expense Management and Maximize Efficiency

DAS-03 – Achieving Scheduling Zen – How to Unleash the Power of WorkBook Resourcing Planning

  • Network with Like-Minded Professionals

Deltek ProjectCon brings together thousands of like-minded professionals. This provides an excellent opportunity to network with colleagues and make new connections! The conference offers numerous networking events as well as an expo hall where attendees can meet with leading vendors and service providers. Come meet PCI in the expo hall at booth 3!

  • Stay up-to-date on Industry Trends

Deltek’s offerings continues to grow and evolve, especially with the recent release of Costpoint 8.2. It is important for professionals to stay up-to-date on the newest features and enhancements to gain valuable insights from product experts. Hear tips and tricks from other users on how to get the most out of your Deltek experience.

  • Learn Directly from Deltek Experts

Deltek is filled with experts who are uniquely positioned to provide insights and guidance on how to get the most from their products. At Deltek ProjectCon, attendees can learn directly from these experts via in-depth training sessions. This provides unparalleled access to the people who know the products best and can help attendees optimize their use of Deltek software.

  • Have Fun While you Learn

While Deltek ProjectCon is a serious business event, it’s also designed to be fun and engaging. From social events like happy hours and networking receptions to interactive exhibits and live demonstrations, there’s plenty to see and do throughout the conference. This creates a dynamic and lively atmosphere that makes learning and networking more enjoyable and memorable.

We hope to see you there! Register now to attend!

Satisfy Every Need of your Government Contracting Business with PCI

Running a successful Government Contracting practice can be challenging. With so many business aspects to consider, it can be easy to get overwhelmed. But don’t worry, PCI has you covered. Our client solutions are designed to help you conquer your practice goals and achieve new levels of success.

We offer a wide range of products and services that are not only budget-friendly but also user-friendly, allowing you to focus on what really matters – taking care of your bottom line. And the best part? Our solutions are incredibly beneficial, meaning you can increase your revenue while being provided top-notch care.

So why wait? Let PCI help you take your business to the next level.

Deltek Costpoint Services

For more than 14 years, PCI has been a trusted provider of implementation and service support for Deltek Costpoint. Our experienced consultants have hands-on knowledge of this ERP system and can offer expert guidance, training, and support to ensure your organization’s success in setting up the system. Check out our Costpoint Service Offerings here.

ARCH – Travel & Expense

Introducing PCI’s ARCH program: the ultimate travel booking and credit card reconciliation package suite for today’s Government Contractor. With ARCH, you can seamlessly integrate your travel booking process, reconcile credit card transactions, and effortlessly transfer data to Deltek’s Costpoint expense solution. Streamline your operations and stay compliant with ARCH.

Learn more about ARCH here.

Astrata API Integrations

Level up your solutions with PCI’s Astrata API integrations. Simplify your operational processes by consolidating them into fewer tools. Our powerful integration capabilities will empower your team to efficiently manage projects and gain comprehensive insights into your business.

Managed Accounting Services

Rest easy knowing your accounting is being handled for you! PCI’s staff is experienced in Deltek Costpoint accounting needs. We can save you time and money by handling your accounting tasks from bookkeeping to CFO level support. See the Managed Accounting Services PCI has to offer here.

Be sure to contact us today to set up time to discuss your business needs!

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Why Compliance is Essential to your Government Contracting Success

Attention all government contractors – compliance is essential to your success!

Here are 5 reasons why prioritizing compliance should be your top goal for 2023:

Protect your business: Stay out of legal trouble and avoid hefty fines by following guidelines and regulations.

Stay ahead of the competition: Showing your commitment to compliance can give you an edge in winning government contracts and setting you apart from the competition.

Promote ethical behavior: Be proud of your business’s ethical standards and boost employee morale, while gaining public trust.

Be prepared: Audits are a regular part of contracting – be ready for any audit by staying compliant and avoiding costly penalties.

Keep up with regulatory changes: Don’t get left behind – prioritize compliance to stay informed of any regulatory changes and adjust your business practices accordingly.

Remember, by prioritizing compliance in 2023, you can protect your business, stay competitive, promote ethical behavior, be prepared for audits, and stay on top of changing regulations. Keep your business thriving and avoid costly fines and legal problems by focusing on compliance now.

Learn more on how PCI can help you with your compliance needs by contacting us today!

What to Keep in Mind when Creating a Compensation Plan and Writing Policy

Writing down, is one of the easiest things companies, especially small companies and can do to support and explain the compensation paid to employees. Even if you don’t intend to change anything about the methodology, just having it formally documented and accessible to the necessary people can keep you in compliance with FAR and keep you from having compensation questioned.

FAR 31.205-6(a)(3) states that, the compensation must be based upon and conform to the terms and conditions of the contractor’s established compensation plan or practice followed so consistently as to imply, in effect, an agreement to make the payment. Proving that you are following a practice to this level of consistency is very difficult when you have multiple nuances within each employment agreement. Writing down the company’s methods and the potentially negotiable elements of compensation within that company is much faster and simpler than trying to convince an auditor that you’re consistent. Even just from the perspective that the Head of HR, CEO, and auditor alone will all have three differing views on consistency.

When establishing a compensation plan and writing a policy, keep in mind a few influencing factors:

  1. Compensation needs to be reviewed annually
  2. Identify the surveys, market indices, and other benchmarking tools that will be utilized
  3. Establish who is responsible for reviewing compensation by job category and identify factors that could play into the planning
  4. Consider a range of compensation by job class or labor category, in lieu of more finite written policies
  5. Make it known how and what is necessary to fall at a lower or higher amount within the established range, e.g. time with the company, higher education, continuing education, etc.

Additionally, FAR 31.205-6(f)(1) specifies that bonuses and other incentive compensation are only allowable if there is a written plan, an established practice consistent enough to imply an agreement, or a documented agreement with each employee that was paid a bonus and included in the indirect rate pool. Again, my perspective is that the easiest way to comply with FAR and substantiate the costs if they were to be audited, is to have a written plan from the get-go. This makes the situation much more controllable by the company and makes auditor subjectivity less variable. It also outlines procedures to be followed across the board as the company grows and potentially more people are involved in the bonus process.

When establishing a bonus plan and writing a policy, keep in mind a few influencing factors:

  1. Bonuses are only allowable if an agreement/plan was established prior to an employee performing the work
  2. The plan must identify who is eligible for bonuses, when bonuses are paid, and how bonus amounts will be calculated
  3. A basis of why the employee is receiving a bonus must be documented for every employee and every bonus, e.g. a standard form, written supervisor reviews, annual performance matrix, etc. This is required documentation whether the company chooses to enter into individual agreements or chooses to have a standing policy.
  4. Profits cannot be disguised as costs by distributing them as bonuses, including formal profit-sharing plans. It is important to emphasize employee performance metrics that determine bonuses when writing a plan and not to discuss or identify company performance as a factor to narrow the gap on subjectivity even further.

  Learn more about Compensation and Policy Audits here in our recent on demand webinar.

PRIME: Your Winning Business Development Strategy

Do you struggle to find new business opportunities? Do you question the effectiveness of your BD staff or are you thinking about starting a BD team in your organization? Or do you simply want to get more results out of their efforts?

If you struggle with taking your organization skills and talents and turning them into an actionable pipeline of opportunities to grow your organization, PRIME is designed for you.

PRIME allows us to use calculated intelligence, derived from data science, machine learning, and artificial intelligence, to evaluate your current business base, and provide you with varying levels of service based upon your needs. Whether you are simply looking for an actionable list of opportunities to chase, or you need help with a full Five Quarter Strategic growth plan, PRIME can help!

Using your existing business and relationships PRIME can identify new business opportunities that most represent you core competencies.

Outsourced Business Development

The Government procurement cycle is a long one. Far too many Business Development professionals promise results that come with high price tags and long lead times with a complexity of how to measure success.

The PRIME outsourced Business Development offerings give you the flexibility to get a high level of BD acumen for a fraction of the price of a full-time resource. From simple industry analysis to full scale strategic planning and proposal support, PRIME lets you customize the offering to meet your business goals.

PRIME can fill your pipeline with a list of well evaluated real opportunities that will allow your organization to grow.

Learn more about our PRIME solution here.

Timekeeping for Government Contractors

Timesheets are a major component of a government contractor’s accounting system. But why are they so important? See below. 

  • FAR 31.201 –2 (d) reads: A contractor is responsible for accounting for costs appropriately and for maintaining records, including supporting documentation, adequate to demonstrate that costs claimed have been incurred, are allocable to the contract, and comply with applicable cost principles in this subpart and agency supplements.

There are penalties for labor mischarging, requirements to ensure your organization is meeting, policies that need to be in place and more.  Join us for a webinar on 11/1 where we will discuss requirements for employees and managers related to timekeeping and DCAA Audits that focus on timekeeping.

Register here to attend: Webinar: Timekeeping and the Government Contractor

6 Reasons to Attend Deltek ProjectCon

Deltek ProjectCon, formerly known as Deltek Insight, is the destination for project-based business professionals to gather for inspiration, education and collaboration.

This year’s Deltek ProjectCon will take place on November 15-18th at the Gaylord Opryland in Nashville, TN! PCI is excited to participate as a Platinum sponsor at this year’s event!

Check out these six reasons to register for DeltekProjectCon:

  1. Deepen your Product Knowledge – This conference offers hundreds of product educational sessions teaching new skills, tips, and tricks. PCI will be hosting three sessions, listed below. Be sure to add them to your agenda!

CPSPON-13: How to use the MS Word reporting tool in Costpoint

CPSPON-14: Offers and Decisions

CPSPON-15: Do your contracts have CLINs/SLINs/ACRNs? Do your employees complain because they have too many project codes? See how ACRN billing will fix all your problems.   

  • Networking! – Connect with thousands of attendees, Deltek leaders and visit with the PCI team in the Xpo Hall!

  • Ignite Innovation – Hear how companies like yours are leveraging Deltek’s solutions!

  • Certifications – Be sure to take advantage of the complimentary Deltek University certification exams while on-site!

  • Meet 1:1 with Experts – Meet 1:1 with the PCI team, Deltek Customer Care, Solutions Engineering team and more!

  • Enjoy your time! – There are a ton of fun activities planned throughout the conference such as philanthropic activities, special networking events and a customer appreciation party!

We hope to see you there! Register now to attend!