The Federal Government is in midst of the fourth quarter of its fiscal year and many millions of competitive procurement dollars are awaiting obligation. CohnReznick is keeping its eyes on major competitive acquisitions as well as the relevant business system and cost proposal compliance requirements of the Draft and Final Requests for Proposals. Interested parties in major acquisitions should be aware and prepared to address each of these requirements in their proposals. We will continuously monitor these acquisitions and update this post as necessary.
Major Upcoming Competitive Requirements
Understanding RFP requirements and draft contract clauses is imperative in enabling a successful proposal submission. We continually monitor major Federal Government acquisitions for significant compliance needs. Among the items we review are clauses related to business system requirements and significant and/or unusual cost proposal instructions within the RFPs. I have summarized our RFP review (which we will continuously update) in the reference link. The information was obtained from Federal Business Opportunities as of September 1, 2017.
What Should Contractors Do Now?
If your company wants to become a prime contractor or subcontractor on any of the Government acquisitions referenced above, it needs to become familiar with the business system requirements and anticipated cost volume compilation instructions. Without the compliant business system required by the RFP at the time of award, your firm may need to spend some money and could be in jeopardy regarding the award. For all contract-required business systems, the Government may not have formally approved them prior to contract award. This would not preclude an award (except as noted within the RFP) but it is incumbent on the contractor to ensure these systems are properly functioning and ready for audit should it be selected for award.
Regarding cost volume instructions, heed the warnings previously mentioned in our blog post here. The draft RFP cost volume instructions should be carefully reviewed immediately upon your firm internally expressing interest in the solicitation. The contractor should ask the Contracting Officer to clarify any instructions that they may find ambiguous or push back on any requirements they perceive to be onerous. Just remember, whatever questions that may be asked, will be shared, on a non-attributable basis, with all other interested parties.
What does CohnReznick Think?
CohnRezhnick has a dedicated team of experts who have audited business systems and supported competitive procurements both as Government employees and as third-party auditors contracted by Federal Government agencies. We appreciate the opportunity to partner with Government contractors to help prepare them for any business system audit or other aspects of RFP cost volume requirements. We offer several resources you should look into:
- CohnReznick GovCon360 (govcon360.com): Keeps you up-to-date on the ever-changing regulatory environment that is government contracting. From reference materials to educational presentations and thought leadership pieces on industry matters, GovCon360 is a valuable resource for the Government contracting professional.
- CohnReznick Insights (cohnreznick.com/insights): Provides CohnReznick’s latest insights on business trends, regulatory developments, and economic issues. You can subscribe to receive Insights e-newsletters by email.
- CohnReznick Website (cohnreznick.com): In addition to Insights, our website provides extensive information about all aspects of Accounting and Assurance, Tax, and Advisory services.
For more information please contact Jeff Shapiro, Senior Manager, at firstname.lastname@example.org or (703) 286-1709 or Kristen Soles, Partner, at email@example.com or (703) 847-4411.