How to navigate the complex world of government contracts*

As the world’s largest purchaser of goods and services, the US government offers companies enormous opportunities. Initiatives such as the Iraqi reconstruction, homeland security and healthcare all require support from private sector companies. However, government contracts also pose serious challenges. Ever-shifting defense spending, regulatory mandates and downsizing or termination of programs can make entering into a government contract a challenging business. In addition, contractors must deal with complicated rules pertaining to cost allowability, accounting system requirements, government audit rights and information disclosure. Under threat of severe penalties and consequences for wrongdoing or even negligence, many companies find that they need help navigating the complex waters of government contracts.

If this is your situation

• You need help with federal contract financial and cost accounting issues, such as disclosure of certified cost or pricing data, cost allowability or compliance with cost accounting standards
• You need assistance preparing and negotiating complex contract termination settlement proposals
• You must prepare requests for equitable adjustments arising from contract changes and government caused delays and disruption
• You want specific, relevant and cost-effective analysis of contract disputes and bid protests
• You seek assistance in establishing and maintaining management and accounting systems which are in compliance with the numerous procurement regulations
• You need litigation consulting and expert witness services relating to qui tam lawsuits and other allegations of contract fraud
  

How PricewaterhouseCoopers can help you

PricewaterhouseCoopers' (PwC) Government Contracts Practice (GCP) professionals provide organizations with extensive expertise in the financial and contract management requirements of federal contracting. We have vast experience in the procurement process as a result of our work with both public and private sector organizations in aerospace and defense, architecture, construction, electronic component, environmental engineering, health care, not-for-profit and telecommunications industries. With a combination of government and industry experience, our professional staff is adept at addressing both regulatory and business contracting issues. As a result, GCP clients receive clear, concise, fact-driven analyses and advice.

Services we provide include the following:

• Contract Claims for Terminations Changes and Government Caused Delay and Disruption – Analyze entitlement, quantify contract price adjustments and prepare proposals for recovering the costs of contract performance
• Cost Accounting Standards (CAS) – Analyze compliance with CAS rules and regulations and assist in preparing CAS Disclosure Statements and cost impact proposals
• Cost Principles – Analyze the allocability, allowability and reasonableness of costs charged to U.S. Government contracts and assist clients in resolving complex issues such as allegations of failure to exclude unallowable costs
• Cost Proposal Preparation and Negotiation - Assist with the preparation of cost proposals, provide technical support during government fact-finding, and participate in contract negotiations
• Indirect Costs – Develop forward pricing and final indirect cost rates, provide advice on indirect cost rate methodologies and structures and screen cost submissions for unallowable costs
• Contract Studies – Identify opportunities to enhance contract performance, revise cost accounting practices, improve cash flow and move from cost-based contracting to price-based contracting
• Defective Pricing – Advise clients on compliance with the Truth in Negotiations Act, review the merits of government non-compliance allegations and quantify the impact of failure to comply with statutory and contractual requirements
• Federal Supply Schedule Contracting Requirements – Analyze contracting requirements of the General Services Administration Multiple Award Schedule, prepare proposals and conduct pre-award contract negotiations, assess the merits of government alleged defective pricing and price reduction violations, quantify contractor noncompliance impacts and assist in settlement negotiations
• Systems & Compliance – Analyze contractor accounting and management procedures and systems for compliance with procurement regulations. Assist in developing appropriate internal controls such as policies and procedures, system enhancements, training and compliance monitoring
• Training – Train on all aspects of contract pricing and accounting
• Merger and Acquisition/Purchase Price Disputes – Provide due diligence support related to regulatory compliance risk, contract performance and accounting issues
• Federal Contract Disputes – Consult on litigation and provide expert witness services in disputes relating to cost allowability, cost allocation, defective pricing, labor mischarging, product substitution and contract changes and government-caused delays and disruptions
• Fraud & White Collar Crime – Assist with Qui Tam lawsuits and allegations of contract fraud, asset theft and concealment, embezzlement, accounting irregularities and other criminal acts
• Other Commercial Disputes – Assist in breach of contract disputes, employment disputes, alleged securities act violations and other disputes among and between government contractors.