“Our revenue grew $26.8M in 4 years on the GSA Schedule Program” – Ted M.

GovCon Compliance for Service Contractors (Interview)

GovCon Compliance

9 Vital questions about Government Contracting Compliance!

Did you know the following GovCon Compliance statistics?

– Fed gave $2.3 Billion in fines to GovCons last year!
– 80% of GovCons incurred a fine!
– It will definitely be getting worse, DoL is hiring 250 new auditors = more scrutiny & more audits!!!

Watch the video below to learn how to prepare for airtight GovCon compliance, avoid Audits, and how to handle an audit.

Reach out to Randy if you have questions or would like to inquire about AXIM:

Randy Leiker, VP-Sales @ AXIM Fringe Solutions Group – RLeiker@aximfsg.com 

GovCon Compliance Interview Outline

GovCon ComplianceExposure –

    • newer company (prepping for audit) –
      • 5% of companies prepare (educated guess)
      • Top 5 Compliance areas (80/20 rule)
        • Depends on type of contract (SCA, GSA, …)
        • (1) multiple (sub, prime, davis bacon, SCA, GSA, unions, CBA’s, etc.) = complexity
        • (2) insurance program requirements
        • (3) How fringe allocations are administered (cash, benefit)
        • (4) tracking everything
          • transparency
          • keeping back records – audits go back years in arrears.
        • New GovCon Compliance preparation:
          • Analysis of Operations
            • Evaluate current Organization structure and tracking processes. Who is in charge of GovContracts?
          • Analysis of Contracts
            • expectations / requirements
            • improvements, efficiencies )increase profit)
          • existing contract holder with upcoming audit
          • Audit from DOL
            • Auditor comes onsite
            • Looks into every area of business (spills into commercial)
            • Lots of docs need to be provided
            • Could go back 2/3 years (sometimes 5)
            • Transparency is expected.
            • Approach
              • Dig into docs and look for problems first
              • Get help from an expert
            • Pentalties
              • Backpay adjustments = good scenario
              • Don’t be a repeat offender
              • Death sentence = 3 year ban on GovCons
            • Other Audits – revolve around risk of fringe benefit programs (lawsuits)
          • Efficiency (GovCon Compliance Prep)
            • Different systems, payroll, ERP, Logistics, CRM: rarely are all connected
            • SMB’s patch them together, large businesses pay millions for custom software development
            • AXIM – developed software to manage fringes, benefits, payroll , estimates (connect the dots) .
            • 30-35 hours a week (avg time to wards compliance) / AXIM frees up time (down to ~ 5 hours)
            • Reporting – easy generation if/when customer requests or internally.
            • Bidding smarter (compliance minded)

Revisit your operations & processes regularly. Biggest mistake is trusting the way things have always been


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