How Costpoint Met the Needs of a Small Government Contractor Eyeing Growth
By Marc Holliday, Director of Product Marketing, Deltek
QuadTech Analytics, Inc., had one contract in 2016, and even though the emerging government contractor only had a couple of years under its belt as an established firm, at the helm were four seasoned players who were no strangers to managing a complete project lifecycle. They knew, if they played their cards right, a single contract could turn into a multiple opportunity portfolio rather quickly, and being prepared was their best recourse. Having used Deltek Costpoint in their “former lives” each of the founding partners knew, “the faster you have the approved accounting system, the better types of contracts you get,” said Mark Watson, Chief Operations Officer for QuadTech Analytics.
“It’s kind of biting the bullet at the beginning, because it is a big expense, but it’s one of the most critical and important expenses,” said Watson. “If you’re doing government contracts, 99 percent, you need something more robust than QuickBooks®, especially if you want to grow.”
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Solution Selection Starting Point
QuadTech Analytics assists those within the special operations and intelligence agency communities with the integration of cutting-edge technology platforms, like artificial or augmented intelligence and machine learning, into existing enterprise systems and processes. Their primary goals are to match the right vendor with the right firm so that a business’ operation becomes much more efficient and effective, reducing the number of analysis hours, minutes and seconds needed to generate accurate and critical reporting.
Because each of the QuadTech Analytics partners had previous experience with Costpoint, they knew the immediate and future capabilities it would provide, as well as the competitive edge it would give over firms using mass market solutions, like QuickBooks. Their number one question… did a scaled version of the solution exist to serve their small business at a price they could afford?
Deltek’s answer – yes.
After comparing Costpoint’s capabilities with what many small businesses said they needed in regards to project management and an aligned accounting system, Deltek introduced a new program for small businesses. By keying in on the value of Costpoint’s cloud solutions, small businesses like QuadTech would see no capital expenditures for hardware, and reduced needs for IT staff, since upgrades, maintenance and complete disaster recovery would be managed by Deltek--all available in a predictable pricing structure to help with cash flow, and easily attainable. QuadTech Analytics was an early adopter of this program, and to gain a better understanding of their actual indirects, QuadTech Analytics set a timeline of three and a half months for full implementation.
“Anybody could know their profit and losses and their income statements and their balance sheets, but to truly understand indirects based on your cost pools and basis, so that you know if you’re developing your contract rates correctly, it is critical,” said Watson.
One week after discovery and fact finding was completed with their implementation partner, QuadTech Analytics’ time collection component was implemented, promptly putting the firm on track to complete their accounting system component within their three and a half month window.
DCAA Audit Confidence
“You’re definitely 10 steps ahead of the game if you have a robust accounting system the DCAA likes.” - Mark Watson, Chief Operations Officer for QuadTech Analytics, Inc.
Watson has experienced Defense Contract Audit Agency (DCAA) audits without the benefit of having an adequate accounting system. He says that it is not uncommon for an audit to take five to six months, possibly even longer, and that the resources devoted to pulling documents, going through folders filled with lengthy information, and the negotiation involved, all in the name of items like indirects, can hamstring firms of every size, but especially a small operation.
“You want to develop that architecture [accounting system] very early, because if you’re going to get a DCAA audit, you’re going to want to have that structure in place, otherwise, it’s going to be extremely difficult to pass,” said Watson.
In his experience, relaying that a firm’s accounting solution is from Deltek helps simplify the DCAA audit process from the beginning. Being able to identify and quickly reference required and optional schedules involved in an Incurred Cost Electronically (ICE) Model submission, or to more easily define and surface universal pools, smooths the path for both DCAA auditors and the government contractor under review.
Landing on Deltek Costpoint
Timing played an important role in QuadTech Analytics’ choice of Deltek Costpoint as their project management and accounting solution. In the same moment QuadTech Analytics was ready to consider options beyond the stepping stone solution of QuickBooks, Deltek had gathered the needs of small or start-up government contractors into a more attainable/compatible version of the Costpoint solution. From the basic capabilities and future configurations, to fast-tracked implementation times and pricing and payment options that made the most sense, every angle was considered for businesses like QuadTech Analytics.
Curious how Deltek Costpoint can fit into your small business strategy? Experience it for yourself by reserving a seat for any solution speed session demonstration.
- Business Development
- Business Infrastructure
- Contract Management
- Cost Management
- Costs and Expenses
- Deltek Clarity
- Deltek Costpoint
- Deltek Insight
- Earned Value Management
- Financial Management
- Firm Management
- Government Contracting
- Human Capital Management
- KPIs and Analytics
- Project and Portfolio Management
- Project Management
- Project Manufacturing
- Resource Planning
- Risk Analysis
- Scheduling and Planning
- Talent Management
- Time and Expense Management