Over the last several weeks, ReliAscent has learned some (potentially) disturbing and important news regarding Government Contractors using the Deltek GCS® accounting system.
Several contractors who are currently using the Deltek GCS® software, have recently told us that they were contacted by Deltek, and were told they needed to transition to their enterprise solution, Costpoint®. The rationale, as we understand it, is because the Deltek GCS® software will no longer be supported beginning in 2017. That's only a little more than a year away, and given the amount of time it takes to evaluate and migrate to any new accounting system, there are a lot of government contractors that need to take this opportunity to start looking for more affordable, faster, and higher quality systems. It’s either that or pay what one some refer to as the Deltek “ransom.”
For many small to medium sized contractors, this is a deal-breaker that will drastically impact their bottom line. Costpoint® is far more expensive and can cost an additional tens or even hundreds of thousands of dollars over GCS®. The other solution would be to switch to the First Essentials® package that is a cloud based version of the GCS® software. The only questions there are: how long will Deltek support the First Essentials®package, what is the cost of this SaaS solution and what is the minimum sign up period?
This threat isn’t necessarily new, from what we understand. Although Deltek has made similar threats of shutting down GCS® in the past, the timing now seems much more likely with more and more competition entering the market. Additionally, Deltek was acquired by Thoma Bravo in 2012, and since this time, Deltek has undergone many transformations in their business and to their employees. Thoma Bravo, after all, is known for their ability to increase margins of businesses so they can sell them off in three to five years.
The growing consensus among contractors and DCAA compliance consultants seems to be solidifying around the conclusion that this time, it’s the real deal. It looks like the Deltek GCS® platform will no longer be supported. So the choice for a small to medium sized business is to switch to the First Essentials® platform (for a cloud based solution) or to Costpoint® for a locally owned solution.
This is a significant development for all contractors using the GCS platform. As ReliAscent learns more from our sources and partners in the DCAA Compliant Accounting Software industry, we will keep you informed! Follow this space to learn more, as we plan on releasing blogs and webinars on topics related to the sun setting of GCS® and the other options available to users.