When you choose the right tool for the task, you automatically elevate project efficiency and the quality of results.

A government contractor (GovCon) does not need to struggle to apply generic financial planning and analysis (FP&A) software to meet the market’s specialized requirements. Nue has designed a cloud-based FP&A platform specifically for GovCons to tackle the unique market demands that standard business practices do not cover. Nue transforms your data into key business analytics, real-time forecasts, and unlimited scenario planning—all focused on the distinctive demands of the government marketplace.

3 Profitable Reasons to Upgrade to Specialized GovCon FP&A Software

1.   An advanced platform to collect, crunch, and share your data.

Nue allows data input and information sharing from within and outside your enterprise, with secure authentication. The platform integrates with Unanet, Deltek, Quickbooks, and Salesforce. Scalable forecasting accommodates unlimited scenarios run with ever-changing data—no need to start from scratch for each iteration or use complex formulas. With GovCon in mind, the below is tailored for industry use and compliance.

• Nue provides 32 different Basis of Estimates (BOEs) for budgeting with customization for factors, escalation rates and more eliminating complex formulas
• Support assumptions for working capital and fixed assets
• Integrated pipeline to capture new business estimates factored by the probability of a win (pWin). Your team can shift what-if scenarios as often as necessary to make informed decisions for your business’s future, such as how an increase or slowdown in contract awards will affect indirect rates or what market changes will mean for line of credit requirements.
• Output in the form of detailed industry-specific indirect rate reporting and waterfall reporting, combined with visuals for high-level visibility of information and KPIs.

2. Compliance with federal regulations.

The U.S. government’s extensive regulatory framework influences every stage of a GovCon project—from budgeting and RFPs through project execution and recordkeeping. Nue’s platform is purpose-built to address these requirements by ensuring that cost/pricing data input, documentation, and forecasting processes align with FAR, DFARS, DCAA, CAS, and cybersecurity mandates. Key considerations include:

• FAR and DFARS Requirements for Accurate, Current Cost/Pricing Data

1. • Contractors regularly working with the DoD may negotiate Forward Pricing Rate Agreements (FPRAs) or be subject to Forward Pricing Rate Recommendations (FPRRs), both of which rely heavily on robust forecasts for indirect rates.
   • DFARS guidance (including DFARS 252.215-7002 on Estimating System Reviews) stresses the importance of reliable forecast data for fringe, overhead, G&A, labor escalation, and related cost elements. Nue’s solution satisfies Section N-01 (Estimating Indirect Expense) by providing clear, consistent methodologies and documentation.

• DCAA Expectations for Adequate Reviews and Estimating Systems

1. • All forecasting efforts, such as forward pricing rates or provisional billing rates, must be rooted in consistent accounting data and present a reasonable, well-documented basis for all estimates and comply with FAR provisions.
   • Basis-of-estimate documents should be clearly traced and reconciled with actual data from prior periods to ensure transparency and auditability.

1. • DCAA generally reviews indirect rate impact assessments when a contractor makes—or is planning to make—a significant change that could affect indirect rate structures or allocations.
   • For larger contracts subject to CAS, forecasting for direct, indirect, and overhead rates must follow consistent and disclosed cost accounting practices.

• Cybersecurity Requirements to Protect CUI and Other Sensitive Data

1. • DFARS 252.204-7012 (Safeguarding Covered Defense Information): Alignment with NIST SP 800-171 to protect sensitive DoD information, which often includes financial and forecasting data.
   • Cybersecurity Maturity Model Certification (CMMC): Requires contractors to implement specific security controls within any systems housing sensitive data, including those used for financial planning and forecasting.

Nue’s platform was designed from the ground up to accommodate these comprehensive regulatory requirements. By integrating rigorous recordkeeping, cost calculation tools, and cybersecurity safeguards, it helps contractors meet the government’s strict standards while streamlining their overall compliance efforts.

3. Detailed cost tracking, allocation, and reporting.

Project-Focused Forecasting

A project-based build-up is crucial in GovCon compliance because it aligns resource planning, cost accumulation, and revenue recognition by project. By breaking costs down at the project level, it ensures greater accuracy in labor hours, material usage, and overhead—central elements of DCAA audits and DFARS Estimating System Reviews. This granular approach also provides a clear basis of estimate, tying forecasts back to historical data and simplifying both internal reviews and audit processes.

 Detailed Cost Tracking, Allocation, and Reporting

The nitty-gritty of compliance—and setting profitable rates—entails accurate, ongoing records for proper cost allocation, including:

• Direct and Indirect Costs: Contractors must segregate direct costs (project-specific) from indirect costs (e.g., overhead).
• Cost Pools: Estimating based on consistently applied cost structures [e.g., fringe benefits, overhead, and general and administrative expenses (G&A)] is essential for billing and compliance.
• Granular Cost Analysis: Nue enables you to break down costs at the project or contract level, providing detailed insights into financial performance.  Or break indirect costs down by cost pool to manage indirect rates, multipliers, and the dollar value of the indirect rate variance.

Nue software tools empower GovCons to simplify and streamline cost management while maintaining compliance with federal regulations:

• Generate detailed, accurate records to analyze cost structures and support contractor cost practices. Extensive documentation supported by calculations ensures costs are reasonable and allowable, supports accurate billing, and helps avoid payment disputes or delays.
• Strengthen your ability to demonstrate value during negotiations and administration with robust, data-driven insights.
• Build a reputation for transparency and accountability with government customers and regulators.

See for yourself how an FP&A platform customized for GovCons can help you significantly step up your government game. Contact Nue for a free consultation and software demonstration at your convenience.