The House That Deltek Built: Making It Your Own
By Marc Holliday, Director, Product Marketing, Deltek
No matter how big your government contracting “family” gets, you’ll never outgrow your house—if it’s constructed by Deltek.
In the first and second posts of this series, I discussed several reasons that Deltek Costpoint is the perfect starter home for small government contractors AND a forever enterprise resource planning (ERP) home for companies of any size.
Today, I’ll go into detail about a few more capabilities unique to Costpoint when it comes to ERP products for small and medium businesses (SMBs).
A Tale of Two Grandfathers: Why Lewis-Price Turned to Deltek to Better Their Business
Deltek Project Nation Blog
Primo Subcontractor Management
Most government agencies require contractors to use subcontractors, and Costpoint is ahead of the pack in subcontractor management. While some competitors promise a purchase order (PO) solution, Deltek continues to exhibit product leadership by listening to customers and delivering a special purchase order that serves as a binding subcontractor agreement. The PO goes into great detail about project scope, where work is to be performed, the type of labor required along with certifications and security clearances, the rate the prime contractor is willing to pay the labor, and the statement of work.
When the prime sends the PO to the subcontractor, and the subcontractor tells the prime they meet the PO’s conditions, they enter into that binding agreement. The subcontractor enters time and expense into the prime’s Costpoint instance. The prime can see data in real time and controls what the subcontractor can charge time or expenses to, so Costpoint serves as a subcontractor budget. Because the prime can include subcontractor time and expense directly on invoices to the end customer, the process is often 50% more efficient.
Customer Testimonial: A 95-person contractor that was using Quickbooks and Unanet for timekeeping won a contract that required them to handle inventory and have more control over purchase orders. They discovered that unlike other products, Costpoint’s procurement solution doesn’t stop with subcontracted labor; it provides full capabilities for purchasing items for inventory, including government-furnished equipment. Those capabilities and the fact that it’s fully integrated with Costpoint’s fixed asset solution won this contractor over to Costpoint.
Human Capital Management with Costpoint
As the war for talent rages on, forward-thinking companies know that efficient and effective human capital management is more important than ever. Contractors compete for top talent on two fronts: within the contracting community, and outside of that community with commercial companies. On top of that, contractors face unique management challenges: rapid growth, active mergers and acquisitions, executive compensation regulations, and the Service Contract Act.
Other products for SMBs simply don’t offer anything near Costpoint’s capabilities in recruiting, benefits, payroll, learning programs, and career development. Contractors would have to work with multiple vendors, input data in multiple programs and get support from multiple people to match Deltek’s human resources and payroll functions.
Customer Testimonial: VSE Corporation’s 2,300 employees serve the military community by providing supply chain management, maintenance, repair and overhaul services in nearly 60 locations across eight countries. VSE Director Cathy Henry says, “We hired almost 750 employees in three weeks using Deltek Human Capital Management solutions and Costpoint.”
Costpoint: Your Security Blanket
The 2019 Deltek Clarity Government Contracting Industry Study reports that cybersecurity concerns continue to challenge contractors, especially as they transfer more business functions to the cloud. The need to comply with standards, like the National Institute of Standards and Technology (NIST) 800-171, which makes contractors more accountable for reporting security breaches; so 48% of firms cited IT/data security as one of their top concerns. They’re on the lookout for a cloud-based security solution that puts security at the forefront and provides two-factor authentication, which makes sensitive information more secure. Unlike other products for SMBs, Costpoint fills the bill.
Customer Testimonial: Jeff Covino, COO at Flatter, Inc., says, “As you deal with growth you have to deal with protecting proprietary information. We were definitely drawn to Costpoint’s SaaS [software as a service] benefits of flexibility, security and ease of deployment."
Costpoint’s Mobile App and iRAPT Rapture
Costpoint is one of the few solutions of its kind for SMBs with a mobile time app. Many government contractors struggle to get paid, but those who use iRAPT, a secure Web-based system for electronic invoicing, get paid up to three times faster than those who do not. Since Costpoint’s mobile time app is integrated with iRAPT, contractors with Costpoint get a leg up on receiving timely payment.
Customer Testimonial: One user of the mobile time app says, “It’s easy to navigate and review. I like the ability to select multiple timesheets for review and to see different views. Pending tasks are very apparent."
Fixing Your Fixed Assets
Government contractors provide a wide variety of goods and services to their customers. When critical supplies must get from one place to another, such as to a crisis zone to mobilize a response effort, contractors have to be able to pick up the phone, locate inventory and build a plan quickly. Other SMB solutions can’t handle those requests the way Costpoint can.
Customer Testimonial: From 2010 to 2014, International Medical Corps (IMC), a global humanitarian nonprofit organization that deploys first responders to disasters and humanitarian crises, nearly doubled in size and sought a solution to manage its growth, centralize its systems and automate manual processes. Now, with Costpoint implemented in more than 100 nations, IMC easily manages everything from time and expense, to finances and inventory, in one system. IMC Humanitarian Aid Worker Chandra Gilmore says, “Deltek solutions allow us to more efficiently monitor and use resources, and the more efficiently we’re using resources, the more lives we can save."
We started this series with a question: “What size government contractor is Costpoint designed to serve?” As I said in the first post, many people believe that Costpoint is only for large, name-brand defense companies, since it’s the industry-leading accounting and ERP solution that has proven its value for 36 years.
While Costpoint does in fact meet the needs of the largest companies, 70% of Costpoint SaaS customers are companies of less than 150 employees.
The simple answer to the question is that Costpoint is the only product on the market that grows with government contractors as they expand. Before your company wins that $50 million contract that will double the size of your business overnight, you’ll need a solution that grows with your company.
No matter how small you are now, or how large you grow, Costpoint is perfect as a starter home AND as your forever ERP home.
- Business Development
- Business Infrastructure
- Contract Management
- Cost Management
- Costs and Expenses
- Deltek Clarity
- Deltek Costpoint
- Deltek Insight
- Earned Value Management
- Enterprise Resource Planning
- Financial Management
- Firm Management
- Government Contracting
- Government Contracting
- Human Capital Management
- KPIs and Analytics
- Project and Portfolio Management
- Project Management
- Project Manufacturing
- Resource Planning
- Risk Analysis
- Scheduling and Planning
- Small Business
- Talent Management
- Time and Expense Management