Receive CohnReznick insights and event invitations on topics relevant to your business and role.
10/16/2019
CohnReznick helps government contractor save millions with redesigned cost structure
Our Client’s Need
A large manufacturing and engineering services firm with new ownership and management engaged CohnReznick upon discovering that the firm uses an overly complex cost accounting and pricing structure while trying to stay competitive. The firm had multiple legacy companies, which operated on two separate accounting systems and four separate cost accounting standards (CAS) disclosure statements, that needed to be integrated.
Our Solution
We developed a new indirect cost rate model along with one consolidated disclosure statement. In conjunction with these unilateral changes of accounting practices, we developed a detailed cost impact (DCI) to justify that these changes were beneficial to the government.
Results Achieved
Because of our work, the client reduced headcount by several FTEs, reduced other G&A costs by more than $1 million, got a government-approved revised disclosure statement and won a recent re-compete of its largest contract. This contractor is now well positioned for future acquisitions as it has a roadmap to integrate indirect rate and cost accounting practices to help grow its business more efficiently.
Jeffrey Shapiro
CPA, Partner
Close
Contact
Let’s start a conversation about your company’s strategic goals and vision for the future.
Please fill all required fields*
Please verify your information and check to see if all require fields have been filled in.
Related services
This has been prepared for information purposes and general guidance only and does not constitute legal or professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and CohnReznick LLP, its partners, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.