Bidding an Adequate Proposal
Now to the nuts and bolts of government accounting. Let’s start at the beginning, with a strong standardized cost proposal, to supplement your technical proposal. The cost proposal is the most analyzed part of your proposal package. For good reason, the government wants to see the bottom line…how much will your service or product cost. This is also the most essential aspect of the proposal for your ongoing and continued financial success.
Bid Wisely ..You Live with the Results
What you bid is what you live with, especially if you are bidding a firm fixed price proposal (FFP). If you have not done the due diligence to prepare your financial records, in order to know the actual costs of providing the product or service, you run the risk of losing money on the contract. A reality few companies can afford.
There are specific steps a company should take to prepare its books and records for government cost accounting, no matter what contract type it is bidding. We are experts at preparing your company for an adequate cost proposal and then creating a proposal which clearly responds to all elements of the request for proposal (RFP) and identifies all cost elements needed to provide the requested product or service.
Successful Contractors Mix a Variety of Contracts with Commercial Work
Submissions During the Course of a Contract Life Cycle
Depending on the contract type, there can be many submissions required during the life of a contract. Besides the technical required submissions, a contractor must submit financial information. For example, contractors with cost type contracts must submit annual incurred costs documentation. To begin billing on a contract, a contractor must have approved billing rates. Larger contractors with both firm fixed contracts and cost type contracts must provide forward pricing rate packages to the government for approval or recommendation. FFP contractors may still be required to provide documentation on their work or financial processes. We are very familiar with the audits and/or submissions that are required during the life of a contract. Contact us for a free consultation about submissions or audits during a contract lifecycle.