As a Prime Contractor, you are essentially “standing in the shoes” of the government, and as such, the Prime is responsible for the proper oversight of its Subcontractors. This is particularly true if the both the Prime and the Subcontractors are performing under cost-plus contracts. Managing cost and performance is critical for both the Prime and its Subcontractors.
Part of managing the Subcontractor’s costs is reviewing and auditing their invoices, but many Subcontractors are uncomfortable sharing their costs and indirect rates with the Prime. Most Subcontractors consider the details of their costs, indirect rates and fees to be confidential and proprietary information. This makes it difficult for the Prime to “audit” the Subcontractors’ invoices.
CGS can help by directly auditing the Subcontractor’s invoices on behalf of the Prime. This includes confirming the direct costs to the supporting documents such as vendor invoices, employee timesheets and expense reports, etc. We will also confirm the Subcontractor’s indirect rates to the supporting documents (e.g., DCMA approvals, Incurred Cost Proposals, etc.) We can also review compliance with the Subcontract’s billing terms & conditions including the fee. We can do all of this in a cost-effective, efficient and confidential manner.
Please contact us today to see how we can help you to manage your Subcontractor’s costs.