The Contracts Crunch. Jennifer Eastman Senior Product Marketing Specialist, Deltek. Melissa Amdahl Product Manager, Compusearch.

Transcription

1 The Contracts Crunch Jennifer Eastman Senior Product Marketing Specialist, Deltek Melissa Amdahl Product Manager, Compusearch February 26, :00 p.m. 1:00 p.m. (Eastern)

2 About the Presenters Jennifer Eastman, Senior Product Marketing Specialist at Deltek, is an accomplished professional with over 12 years of marketing, business development and management experience. Her areas of expertise include creative marketing, strategic project management and business development. She has managed the pipelines of multi-billion dollar organizations and co-led the implementation of a corporate-wide business development tracking tool while managing a geographically diverse team. Melissa Amdahl has worked managing contracts, subcontracts, pricing, and GSA Schedules for several Government Contractors at all tiers. With over 20 years of experience in contract management as well as designing and implementing a Contract Management Solution for a large contractor, Melissa brings her vast knowledge to her Product Manager role for Compusearch s Contract Lifecycle Management solution. 2

3 Partnership Based on Complementary Strengths Deltek 30 Years in Business 14,500 global customers in 80 countries Global provider of purpose-built enterprise software & information solutions Industry standard for federal contractors Compusearch 30 Years in Business Over 100 defense, Intel, federal, and contractor organizations with more than 40,000 users Leading provider of federal acquisition software ( PRISM ) to government agencies Many federal customers likely use Compusearch s PRISM software for acquisition and contract management 3

4 The Contracts Crunch Federal contracting rules are deep and broad and increasingly onerous Federal customers are aggressively enforcing and auditing contractual terms, obligations, and fees Uncertain federal budgetary environment and increasing prevalence of LPTA Additional reductions in force Utilization of federal Contracts professionals is unsustainably high spikes higher seasonally 4

5 Risks of the Staffing Shortage Last year, DOD IG drove 48 arrests, 171 criminal charges, 81 debarments, and $1.5 billion in settlements for the government. GAO, DCAA, DCMA, other IGs and COs drove numerous other penalties and settlements. Distribution of inaccurate forecasts and ad-hoc reports Inadvertently, inappropriately charging the government in ways other than those allowed or documented Failure to recognize and honor new regulations Deteriorating relationships with contracting officers Inability to find contract vehicles or past performance pays $14 million to settle allegations that it overcharged the Pentagon - FEDBIZ overcharged Pentagon $9 million - Business Insider Found to Overcharge Pentagon by $13.7 Million - Bloomberg.com Lack of focus on at-risk projects, audits, or cure notices Failure to collect all the information required by auditors 5

6 The Cost of Non-Compliance $$ Non- Compliance Financial Costs Unallowable cost reimbursement Penalties Withholdings Reduced Award/ Incentive Fees Outside Legal/ Advisory Fees In FY 2013 DCAA examined over $160 billion in contractor costs, conducted 13,600 reviews and produced 6,200 audit reports. Overall, DCAA s efforts resulted in $4.4 billion in net savings to the government - the highest in Agency history and nearly 75% higher than the average savings during Fiscal Years Defense Contract Agency, 2013 Year in Review $$ Revenue Risks Negative Past Performance Less Competitive Reluctant Partners Debarment 6

7 Complexity of the Federal Contract Lifecycle 7

8 Generic Contract Management Solutions, Common Dead Ends Solution Configuring contract-management software that wasn t built for GovCon typically costs $200,000 to $500,000 Consulting fees can be exorbitant Requires full-time attention with softwaredesign experience Need Contracting experts Knowledge of Govcon Industry necessary for field structure and values Outcome Never Go-Live Abandoned Do Go-Live but miss to address key requirements. Lacking integrated FAR/DFARS/supplemental clause databases, the average Govcon firms spends $90,000 per year identifying contracts impacted by clause changes 8

9 Top 10 Capabilities of CLM 1) FAR, DFARS and agency supplement clause libraries frequently updated by Compusearch 2) Flow-down applicable clauses and provisions from Vehicles to Orders and from Prime to Subcontracts 3) DCAA-formatted Contract Brief available at the touch of a button 4) Create custom Clause templates to capture standard negotiated Terms and Conditions 5) Central repository for contract lifecycle including proposal, award documents, correspondence and subcontractor supporting documents 6) Track value and funding changes (by CLIN/SLIN/ACRN) by modification on prime and subcontracts to facilitate accurate financial reporting 7) Navigate and view information seamlessly between IDIQ/GWAC s/gsa Schedules (or other parent vehicle) to Delivery/Task Orders to Subcontracts and modifications 8) Collaborative communication across functional teams to track tasks and contract deliverables in real-time 9) Standard and ad-hoc reporting to quickly respond to auditors, compliance requirements and senior management data calls 10) Trigger notifications at a fixed percentage of expenditures to avoid funding shortfalls and potential risk 9

10 Deltek CLM Homepage Approval routing and Notifications Support for FAR/DFARS and Other Regulation Databases 10

11 FAR, DFARS and Agency Supplement Clause Libraries Load applicable clauses with access to FAR matrices as well as third party clauses. Preset flow-down recommendations which can be edited by organization. 11

12 DCAA-formatted Contract Brief Marked clauses are based on selected clauses in record. 12

13 Central Repository Link to a file on a shared drive, SharePoint or an external website. Link to a folder on a shared drive, SharePoint or an external website Upload a file directly to CLM Link to awards and subcontract awards 13

14 Track Value and Funding Changes Ability to switch between net view (conformed version) and current view to see changes between the base and mods. 14

15 Standard and Ad-hoc Reporting 15

16 Notification Center 16

17 Subcontracts Module

18 Top Features Subcontracts Module 1. Capture all subcontract information from proposal to award, modification, and closeout; 2. Supports all subcontract types such as Master Service Agreements, BOA s, IDIQ s, BPA s, Orders 3. Support for all contract types (e.g., all Fixed Price types, T&M, all cost types, Labor Hour) as well as international agreements; 4. Automatic validations and warnings for potential errors 5. Maintain complete and accurate history of purchase transactions 6. Capture cost and price analysis and document discounts offered 7. Labor category table to track negotiated rates, SCA and personnel including resume repository; 8. Track level of effort by CLIN/SLIN or contract level; 9. Track delivery due dates with proactive notifications to internal or external parties. 18

19 Subcontracting Pain Points Industry Pain Point Inability to easily find subcontract files Public Law Violations Difficulty tracking Procurement Authority Inaccurate Data Calls Documentation gaps based on subcontracting thresholds and contract types Difficulty forecasting revenue Ensuring compliance within the Subcontracting Plan CLM Solution Virtual Folders provide easy access and organization Flow-down applicable clauses and provisions from prime contract Automated routing of agreements and documents for review/approval Pre-configured structured data fields to drive CPSR compliance Task/Deliverable checklists and workflows to readily define subcontract tasks Pre-configured data fields for capturing and reporting subcontracted amounts Subcontract summaries by vendor with spend percentages at prime contract level 19

20 Subcontracts Summary Report View subcontracted amounts at the prime vehicle/contract/do/to to easily track small business plans and variances, and prompt notification. 20

21 Subcontract Tasks and Deliverables Create standard checklists to track CPSR requirements 21

22 E-Folder Navigation Provides a hierarchical view of the award structure Navigation allows easy access to vehicle, order, subcontracts and mods View of the relationship between orders allows the user to easily see which orders can be used in the copy function When orders are created from vehicles and subcontracts from primes, the applicable data automatically flows down 22

23 Deltek CLM 3.0 Configured FAR/DFARS/supplemental and deal-specific contract clauses and subcontract flow-downs Instill confidence by responding more quickly and accurately to Finance, BD, Compliance, GSA and DCAA data calls More in line with government reporting requirements Maintain a better, ongoing understanding of compliance with terms and subcontract terms Effectively route and monitor approvals Capture and retain vital institutional knowledge A data model that is rich in support of federal contracts AND Their extensive auditing requirements Libraries of regulatory clause data Flexible and rule-based workflows Ability to adapt to ever-changing realities of contract and subcontract management 23

24 Contact Information Melissa Amdahl Product Manager, Compusearch Jennifer Eastman Sr. Product Marketing Specialist, Deltek

25 QUESTIONS? 25

26 Thank you for participating in today s presentation.