Government contracting can benefit organizations in many industries, as they build a financially sound and compliant entity. Proactive compliance management is a great strategy to help a business profit and grow. Explore some tips for complying with regulations as a new government contractor, as well as why doing so matters.
In the financial sector, compliance can save brands money. If one violates a contract, it could experience fines and contract termination. There are also hidden costs, including a damaged reputation, operational disruptions and a decreased likelihood of opportunities. A robust compliance strategy makes companies eligible for future contracts.
It also helps them negotiate better rates and enhances investors’ confidence. When enterprises comply with government regulations, they protect their financial interests and manage risks effectively.
As a new government contractor, it can feel daunting to navigate all the different regulatory lists. The following are some tips for navigating compliance.
The government contract your business is pursuing probably has Federal Acquisition Regulation (FAR), Defense Federal Acquisition Regulation Supplement (DFARS) or Defense Contract Audit Agency (DCAA) compliance requirements. The FAR is the primary list for government contracts and has recently undergone some changes by the U.S. government.
DFARS is a supplement to the Department of Defense, and the DCAA audits financial systems. Review all these requirements to ensure your organization complies.
Data protection is one of many compliance rules you need to follow, especially if your industry consistently handles sensitive data. Financial systems often access vast amounts of sensitive information, making cybersecurity protocols essential. Along with following regulations, a robust cybersecurity protocol provides brands and their customers with peace of mind in an increasingly digital world.
As a financial institution, it is vital to have specific rules for your accounting system. Ensure these align with the compliance requirements in your government contract. Some helpful procedures include cost separation, timekeeping and indirect rate tracking. Having an orderly system also makes audits easier.
Technology is constantly evolving, and newer tools help businesses remain compliant. For instance, you can have a unified dashboard and calendar for accurate record-keeping and quick access. It also keeps all your information in one place, helping workers locate data more easily and prepare for government audits.
It is essential to train employees on the various compliance rules. When everyone is aware of the protocol, they can ensure compliance rather than making mistakes. It can also help them deliver detailed reports and manage tasks effectively when they know what rules to follow.
Compliance regulations experience updates as the government reassesses the current business landscape. While you may comply with regulations now, you might not once an update occurs. Regularly check compliance updates to ensure your entity is still meeting expectations or if you need to rework some existing protocols.
Because compliance is typically complex, you can hire a compliance partner with experience in your industry to help you manage the regulations. Partners should have experienced staff who understand the specific requirements of your government contract. Those that deal with government contracting compliance often have more experience navigating the rules than you, meaning your enterprise is less likely to violate one during your partnership.
Finding a company to help you achieve compliance can be overwhelming when there are so many to choose from. This list features the top options offering government contract assistance.
NeoSystems is the top overall partner offering regulatory compliance support for new government contractors. It provides you with proactive vulnerability scanning, incident responses, endpoint protection and enclave services. Its end-to-end services include the NeoSystems.Cloud, which is a managed hosting service for data and system security. The feature also has good uptime and response.
The company offers CMMC compliance for organizations of all sizes. It has a team of experts that can help with software, accounting and many services in between. NeoSystems also customizes its solutions to suit your individual needs.
PwC helps commercial businesses with government compliance. It offers end-to-end services for compliance on the federal, state and local government levels. The entity can also assist with some international regulations.
It specializes in FAR, DFARS and Uniform Guidance, as well as some other compliance regulations. The PwC team is experienced and delivers quick, strategic insights to help you along your compliance journey.
Morgan Lewis specializes in the labor and employment aspects of federal and state government contractors. It gives you information on your obligations, procedures and various standards when working with employees. Its team has experience working in government.
Most of Morgan Lewis’ counsel relies on the rules and regulations of the U.S. Department of Labor, specifically the Service Contracts Act and Davis-Bacon Act. Some more specific areas of expertise include pay equity risks, I-9 and E-Verify compliance, disability and covered veterans compliance, and immigration specifics.
The Baker Tilly staff has a combined 250 years of experience with government contractors. It addresses complex audit and regulatory compliance matters. So far, the compant supports around 100 contractors, offering them tailored approaches and unique industry insights. These workers have diverse experiences, having been in both the government and outside industries.
Baker Tilly offers support for audits, disputes and investigations regarding compliance. Its advice follows a strategic approach, identifying risks and providing practical solutions. Some of this option’s specific government contracting experience involves cost accounting, financial accounting and reporting, and contractor business systems.
Greenberg Traurig can advise you on federal, local and state government compliance. It assists experienced contractors and new ones, as well. This partner handles complex issues or product sales, as well as solutions management.
It has experience in some notable industries, including commercial, information technology and health care. Greenberg Traurig has specific expertise with clearance and security, cost and pricing, foreign military sales, and many more regulatory topics.
Aprio helps organizations at every stage of business growth. It aids small government contractors, as well as midsize and large corporations. The entity has worked with hundreds of government contractors, making strategic decisions, aligning with their business goals and meeting new requirements.
Its team consists of DCAA auditors, former contracting officers and contract managers. Aprio’s solutions are timely, boosting profits and reducing risks. It provides specific compliance with FAR and DFARS guidelines, as well as with Incurred Cost Submissions (ICS).
Seyfarth has specific experience with Equal Employment Opportunities (EEO) compliance requirements. It helps reduce risks for many different industries. The company’s services are not limited to Fortune 100 companies — it offers them for small organizations, as well.
The Seyfarth team comprises people with multiple disciplines, such as attorneys, labor economists, government officials and EEO compliance professionals. These experts are familiar with compliance regulations on the federal and state contract levels.
The following table outlines the key features of each company listed above.
| Company | Industry | Services | Specialty |
|---|---|---|---|
| NeoSystems | Many | End-to-end | CMMC compliance |
| PwC | Commercial organizations | End-to-end | FAR, DFARS and Uniform Guidance |
| Morgan Lewis | Labor | I-9 and E-Verify compliance and disability, and covered veteran compliance | Service Contracts Act and Davis-Bacon Act |
| Baker Tilly | Many | Cost accounting, financial accounting and reporting and more | Complex regulatory and audit compliance |
| Greenberg Traurig | Commercial, information technology, health care and more | Managed solutions, complex services and more | Clearance and security issues, cost and pricing, and others |
| Aprio | Many | Make strategic decisions, meet new requirements and align with business goals | FAR, DFARS and ICS |
| Seyfarth | Many | Mitigate risks across multiple disciplines | EEO compliance |
Each business was chosen for the list based on its range of industries, specific services and any special offerings. The ranking was selected according to similar compliance partner lists and relevant comparisons of each’s key features.
Financial organizations and other businesses can succeed as government contractors by adhering to regulations. Doing so presents many economic benefits and avoids unnecessary risks. If you want compliance support, consider partnering with an experienced company to ensure compliance with regulations as a new government contractor.