The House that Deltek Built: Your Forever ERP Home

Posted by Deltek on June 20, 2019

Costpoint Forever ERP Home

Post one in a dedicated series reviewing the experiences of small and medium government contracting businesses who have selected Deltek Costpoint as their enterprise resource planning (ERP) solution.

No matter how big your government contracting “family” gets, you’ll never outgrow your house—if it’s constructed by Deltek.

A question we often hear is, “What size government contractor is Costpoint designed to serve?”

The simple answer is that Costpoint is the only product on the market that will grow with government contractors as they expand. On top of that, it’s cost-effective. No matter how small you are now, or how large you grow, Costpoint is perfect as a starter home AND as your forever enterprise resource planning (ERP) home.

Of course, it’s a little more complicated than that, and any government contractor doing its due diligence won’t just take my word for it. Just ask Tiffany Martin, finance manager at Venatôre, who says, “We looked at the total cost of ownership over a five-year period, and Deltek clearly came out ahead in our analysis. As a premier [information technology] IT services company, we know how modern software should function, and how important it is to partner with a company like Deltek. Ultimately, we selected Deltek because we felt they had the most modern platform and user experience, and Costpoint is more affordable for our growing company.”

For additional reasons that Venatôre moved to Costpoint, such as gaining back-office efficiencies and new insights into project performance as it prepares to double in size over the next 18 months, read this press release.

Starting with the End Goal in Mind

Since Costpoint is the industry leader in accounting and ERP solutions for government contractors, having proven its value for 36 years, many people believe it’s for large, name-brand defense companies like SAIC, Lockheed Martin and Boeing, among others. While it’s true that Costpoint meets the needs of the largest companies, 70% of Costpoint software as a service (SaaS) customers are companies of fewer than 150 employees. These companies especially value Costpoint’s project accounting solution and timesheet system, which is the bare-bones configuration for just about any solution on the market. This configuration serves small businesses that want to account for a government contract the right way and makes it easy for their people to submit time, which turns into cash for the company.

In government contracting, a $50 million contract is an everyday occurrence and can double the size of a business overnight. Companies with 25 employees simply cannot risk waiting until the ink is dry on a huge new contract to find a solution that accommodates complicated contracts. They need to have a solution already in place that will lessen their growing pains as they scramble to meet contract requirements. In other words, it’s important to start with the end goal in mind.

As a company grows, Costpoint grows with it. Kris Ford, director of finance for Highpoint Global an IT service management company that recently grew from 40 people to 250 in a year, says, “We saw Costpoint as a platform that would put us in the best position for growing our business.”

Whether a firm has a small, unsophisticated contract or a large, sophisticated defense contract, Costpoint can handle both flavors. Since there is nothing it can’t do, Costpoint is the last ERP a government contractor will ever need.

As Michelle Rubie-Smith, chief financial officer of GRS says, “We reduced our accounting staff by 40% by switching to Costpoint. And, during a recent pursuit, we were notified that we had to go through an SF1405 pre-award system audit. The auditors requested two full days from me and my staff. When I told them we use Costpoint, they were in and out in two hours, and we got our approval!”

Interested companies can leverage one of Deltek’s accounting firm partners that do accounting for our Costpoint customers, so virtually no headcount is required to run Costpoint. Our partners put the contractor in the cloud, turn on Costpoint, get them set up, and run with it. They process day-to-day stuff like timecards, invoices, vendor vouchers, and financial statements, all as part of a monthly service.

Everyone is interested in the bottom line, and the bottom line with Costpoint is that it’s cost effective and has capabilities, unlike any other accounting software for small and medium government contractors. When a firm moves to Costpoint, they will know they have found their forever ERP home.

More to Come

In upcoming posts, we’ll get down to brass tacks about capabilities that only Costpoint can give small to medium businesses, and you’ll hear from customers of all sizes exactly why Costpoint is the last ERP they will ever need. In the meantime, here’s a preview of the topics we will cover: tracking and winning new contracts, IQ solutions, project structure, subcontractor management, human capital management, data security, time capture and iRAPT, and fixed asset management.