Budget Cuts, Fraud & Inefficiency Means Stricter Compliance

There may be a perfect storm brewing in the government contracting world that will make it harder to do business with the federal government.  It started in July of 2008 when the Government Accountability Office (GAO) issued a report that 3 of 3 DCAA audits showed inadequacies in the DCAA's performance of the audits.  This was followed up with another GAO investigation in September of 2009 that indicated a widespread problem within the DCAA organization.  As a result the DCAA went through 3 directors in a little over a year.  Major reform was announced and the DCAA is performing audits strictly to the book now, with only a "pass/fail" grade issued.  But even with this increasing dose of compliance issues for contractors, there continues to be problems.  Does it seem to you that we are hearing more about federal contractor fraud cases lately?  And then how about the case where government contractor executives are paid excessive salaries?  Many contracts suffer from cost overruns and late deliveries.  Combine all of this with the current economic crisis and the emphasis on cutting the federal budget and we have a perfect storm focused on government contractors.  What does this mean?  I think it will mean more scrutiny on government contractors, more emphasis for compliance and certainly more emphasis on performance.  There will be more difficulty for firms to survive in the government marketplace that do not meet all he compliance issues and/or that don't perform on-time and either on budget or under budget.  The contractors that can do this will be rewarded.  The contractors that cannot perform to this new standard will be rapidly pared from the market.  Companies that have an experienced staff to respond to all the government's compliance issues will prosper.  Companies that do not have significant experience in this area need to shore up that weakness.  Outsourcing this function can strengthen a company and assure survival.  Tech BizSolutions staff has the experience to offer to these companies in need of this service.  Call us today if you need to address a weakness or potential weakness.  We can help.