Assessing business systems applicability: A serious business
Business systems are the foundation of any sustainable and profitable company. In the federal contracting realm, they are as follows: accounting, estimating, material management, purchasing, earned value management, and property. These systems flow into the financial statements. So, if you do not have efficient or properly functioning internal controls in place within these systems, you may be in for a real eye-opener if you receive a notification of an impending business-system audit.
Many U.S. government contractors are expected to comply with contractual requirements for maintaining adequate business systems. Business-systems rules and requirements are not limited to those who primarily serve the Department of Defense. The criteria typically used to determine the adequacy of business systems can be found throughout Federal Acquisition Regulation (FAR), Defense Federal Acquisition Regulation Supplement (DFARS), and other agency supplements. Industry and federal contracting officers consider the criteria within these regulations as suitable standards to use in determining the acceptability of any government contractor’s internal controls. How well-versed are you in these requirements?
Business systems applicability chart
CohnReznick’s Government Contracting Industry practice has developed a tool to help federal contractors easily determine when and which business systems may be subject to assessment by federal contracting officers and/or auditors. Scan through the listed criteria to see if your systems may be coming up for federal scrutiny.Download now
For over 40 years, CohnReznick has provided comprehensive services to assist government contractors with a full life cycle approach to winning and managing contracts. We ensure your financial and procurement processes are compliant, efficient and effective - so you can focus on what matters most, profitable growth.
On-demandUsing bid protests as a business strategyWith higher infrastructure spending anticipated in fiscal year 2022, government contractors should expect protest activity levels to remain steady, if not increase. As a result, organizations should think through protests, not as a forgone conclusion of losing a competition or as a lost cause, but as a deeper strategic choice that weighs the cost to the organization, the relationship with the customer, the investment in the proposal, and the potential upside of award as important elements of the decision on whether or not to protest.
InsightSystem assessments vs. audits to earn points and contract awardsWith an CIO-SP4 update, it’s important that federal contractors understand the status of each of their business systems. Learn more.
InsightGovernment Contracting Accounting System Assessment ToolLearn about your company's state of readiness, gain access to additional helpful resources, and talk with our professionals to see how we can help you.
InsightEvolve IDIQ RFP requires a compliant Earned Value Management SystemWith the Evolve IDIQ draft RFP, GovCons are now required to have an Earned Value Management System (EVMS) in place. Learn more.
InsightExecutive Order 14042: Impacts to GovConsChristine Williamson, Sara Bridwell, Katy BarkerGovCons serving government customers could be subject to Executive Order 14042 and will need to ensure COVID safety protocols are in place. Learn more.