Situation
A major defense contractor received an order to build a new ship set by the United States Navy. The company was responsible to perform a proposal review of all quotes and proposals received from its subcontractors as part of their cost and price analysis for the Navy. However, the company lacked in-house staff and expertise to complete all the reviews.
Cherry Bekaert’s Guidance
Cherry Bekaert performed a subcontract analysis of proposals submitted to the shipbuilder. Additionally, since certain projects consist of commentary on accounting systems, other business systems and financial ability to perform we developed a very detailed cost analysis report featuring our findings and recommendations.
Results
Through our subcontract analysis, we exceeded a certain dollar value to determine the bidders’ compliance with the Cost Accounting Standards, proposal documentation (IAW Table 15-2) FAR Part 15.408, cost allowability, allocability, and reasonableness.
