The government typically puts the majority of the responsibility on the prime contractor or upper-tier subcontractors when it comes to subcontractor oversight. They must ensure their subcontractors are adhering to all applicable contract regulations and clauses that flow down to them including, but not limited to, having adequate accounting practices, submitting adequate incurred cost submission, adjusting provisional rates appropriately, etc. Additionally, it is necessary to audit a subcontractors’ proposals, provisional rates, invoices, claims, etc. Many prime contractors or upper-tier subcontractors cannot dedicate resources to perform this audit. There may also be some sensitivity and/or pushback from the subcontractor if the prime is a competitor.
CGS’ professionals possess a unique blend of cost accounting and industry experience as well as the regulatory expertise to aid prime contractors to meet their subcontract audit needs. Specifically, CGS can:
As mentioned above, we can also provide prime contractors services related to Subcontractor Invoices and Claimed Costs. Please contact us for more information on how we can assist you.