The Project Managers Guide to IDIQ Task Order Service Contracts by Mark E. Salesky

Author:Mark E. Salesky
Language: eng
Format: epub
Publisher: Springer International Publishing, Cham

Start-up Actions for Finance

Finance start-up falls into three broad categories:Alignment of Subcontractor labor;

Charge codes;

Report templates.

Most companies have some form of automated timecard and procurement systems to collect employee and non-employee costs. In Task Order Services contracts, where labor hours themselves are often the primary contract deliverable, Subcontractor hours must be collected and aggregated just as employee labor hours. Usually, the employee weekly timecard system is directly linked to the financial collection system so these data are current and reliable. Some timecard software packages enable Subcontractor employees to enter their time through a web portal and thereby collect their time directly. Without direct entry via a portal, then Subcontractor labor is invoiced on a monthly cycle. This creates a potential problem with the timeliness of the information. Consider: if your Subcontractor bills once a month, then his labor data may be as much as four weeks old when you see it. If you bill to your client the next month, then that data is eight weeks old. If you then review the data with your client two weeks later, then the labor data may be 10 weeks old. Pairing that with your own company labor data, which is often collected and available weekly, can be a tedious effort. When multiple Subcontractors have different billing cycles, this task gets very time consuming. Your FA must account for these timings in the way he assembles financial data for analysis or reports. Overall, a direct input system for your Subcontractor labor will be more accurate and efficient for both you, as the Prime, and your Subcontractors. A direct input system has some disadvantages, including set-up time and the cost of the web portal software, and it usually must be set up for the business as a whole, not by individual contract. But, overall, it is worthwhile asking your Finance Manager if this function is available to you.

If you have no option but manual alignment of subcontractor financial data, set aside a regular block of time to meet with your FA for review.

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