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$475M Federal Building Contractor with services in preconstruction, construction, and management. Areas of expertise include Building Information Modeling (BIM), green building LEED certification, civil construction, senior living, and campus housing construction. |
Situation:
In 2008, The Federal Acquisition Regulation (FAR) and Cost Accounting Standards (CAS) set forth new compliance regulations for
companies that do business with the Government. The client realized they were at risk of non-compliance with a new regulation within their awarded contracts, which required adherence to over 100 Government control objectives. If audited, the non-compliance could result in a "deficiency." The Government defines a deficiency as "a failure to maintain an element of an acceptable [Accounting, Purchasing,
Estimating, Earned Value Management, Material Management, and Government Property] system". Each "deficiency" may result in a 10% withholding of contract payments, up to a cumulative amount of 50%. In some cases, the Government may withhold 100% of the payments until deficiencies are corrected or project completion (whichever occurs first).
Services:
Federal acquisition regulation (far) compliance assessment, cost accounting standards (cas) compliance assessment, company manual update and development, government control / gap analysis, business process mapping and narrative documentation.
Auxis Role:
Enhanced and documented the client's current set of administrative processes and practices related to the U.S. Government business system activities. Resulted in Process maps and narratives for:
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- Estimating
- Purchasing
- Accounting
- Budgeting
- Billing
- Labor / Timekeeping
- Indirect Costs
- Material Management
- Fixed Assets / Government Property
- Human Resources
- Updated and / or developed draft client compliance manuals including:
- Government Property
- Purchasing
- Information Systems
- Contract Administration
- Accounting (Budgeting, Billing, Labor, Indirect Costs, Material Management)
- Program Management
- Pre-Construction and Estimating
- Ethics
- Developed a draft Disclosure Statement
- Developed a draft DCAA 'Survey of Contractors' Organization, Accounting System and System of Internal Control' document
- Performed a 'Gap Analysis' comparing current client business processes to Government compliance requirements
- Identified and documented business process enhancement opportunities generated during process mapping exercise
- Made recommendations to address gaps identified to work towards client's compliance objectives
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By assessment completion, the company had standard policies and procedures, as well as thorough process documentation of their administrative systems. Additionally, they had a clear understanding of the actions necessary to be performed to move towards compliance with recent Federal regulations.
About Auxis
Auxis is a management consulting and outsourcing firm dedicated to enabling growth for our customers. We offer a multi-disciplined approach to develop and implement practical, robust and scalable solutions that generate superior business performance, providing significant competitive advantages to our clients. Our core belief is that our success should be measured by tangible and sustainable financial results. Simply put, Auxis helps clients prosper. |
