May 15, 2025
Complying with FAR and CAS Regulations: Everything you Need to Know
Navigating FAR and CAS Compliance: How Deltek Costpoint Supports Government
Contractors
Introduction
Federal Acquisition Regulation (FAR) and Cost Accounting Standards (CAS) compliance are
non-negotiable pillars for established government contractors. These complex frameworks govern
everything from how costs are categorized and reported to how rates are structured and time is recorded.
The regulatory rigor can be daunting, even for seasoned firms. But as any veteran in the GovCon space
knows, compliance isn’t just about checking boxes. It’s about staying contract-eligible, audit-ready, and
operationally sound.
For contractors managing multi-million-dollar programs with countless deliverables, manual
systems and patchwork solutions won’t cut it. That’s where Deltek Costpoint comes in. Designed
specifically for government contracting, Costpoint provides an integrated, audit-ready environment that
simplifies the most challenging aspects of FAR and CAS compliance, without sacrificing operational
agility.
This paper explores how Costpoint supports four critical areas of compliance: cost allowability,
timekeeping, indirect rate structure, and audit readiness.
1. Cost Allowability: Drawing the Line Clearly
The distinction between allowable and unallowable costs under FAR Part 31 can be surprisingly
nuanced. Alcohol, lobbying, and entertainment expenses are obvious no-gos, but what about mixed-use
software or shared marketing services? Missteps here aren’t just bookkeeping issues, they can lead to cost
disallowances, repayment demands, or worse, contract terminations.
Deltek Costpoint mitigates these risks by allowing users to pre-classify costs and tag them
appropriately from the outset. Its project-based chart of accounts and robust cost pools help ensure that
expenses are categorized and billed correctly. Unallowable costs are automatically segregated, making
compliance easier and reducing the likelihood of human error.
What’s more, Costpoint provides configurable rules and validation checkpoints that catch
potential compliance violations before costs are even posted. This means less cleanup at the end of the
month—and fewer headaches come audit time.
2. Timekeeping: The First Line of Defense
If there’s one area where auditors love to dig, it’s timekeeping. Why? Because labor costs make
up a large chunk of most government contracts. One misallocated hour can trigger questions about
internal controls, labor charging practices, and whether your system is compliant with FAR and the
DCAA’s timekeeping guidance.
Deltek Costpoint’s integrated time and labor module supports secure, DCAA-compliant
timekeeping with features that go beyond simple clock-in/clock-out mechanics. Employees enter their
hours in real-time, with audit trails that log every edit, who made it, when, and why. Supervisors can
approve time in workflow, ensuring accountability at every level.
The system also includes automated reminders and validations to prevent late submissions and
flag out-of-policy entries. With mobile access and role-based permissions, Costpoint’s timekeeping
capabilities support distributed teams while maintaining the control and traceability auditors expect.
3. Indirect Rate Structure: Precision Where It Matters Most
Establishing and maintaining an appropriate indirect rate structure is part math, part strategy, and
part regulatory finesse. Whether you’re using a single-tier structure or more complex multi-pool
arrangements, the way you allocate overhead, G&A, and fringe benefits must be logical, documented,
and, above all, consistent.
Costpoint allows for intricate indirect rate structures that can be tailored to your business model,
without sacrificing compliance. The system calculates provisional, actual, and target rates automatically,
and applies them across projects based on defined logic. Need to run “what-if” scenarios or model rate
changes mid-year? Costpoint supports that, too, letting you forecast the impact on profitability and
compliance before making any commitments.
More importantly, the system produces the required disclosure statements and supporting
documentation needed for CAS compliance. Whether you’re submitting to the DCAA or preparing for an
incurred cost submission, Costpoint gives you the data, and the audit trail, you need.
4. Audit Readiness: Not Just a Moment, but a Mindset
The best time to prepare for an audit is yesterday. But with Costpoint, being audit-ready becomes
less of a scramble and more of a default state. Its centralized database ensures that data is consistent
across modules, whether it’s financials, procurement, or HR, eliminating the silos that so often trip up
contractors during audits.
Every transaction in Costpoint is traceable, from the initial entry to the final report. Built-in
reports like trial balances, billing summaries, and incurred cost submissions are export-ready and
formatted in ways auditors recognize. The system also maintains historical versions of key documents,
making it easier to show how policies have evolved, or stayed the same, over time.
And because Costpoint is designed with government audits in mind, its architecture supports
internal controls and audit trails that align with the expectations of agencies like the DCAA, DCMA, and
GAO.
Concluding Thoughts
In the government contracting world, compliance isn’t just about avoiding trouble, it’s about
positioning yourself for growth. FAR and CAS regulations are rigorous by design, but with the right tools,
they don’t have to be a barrier to scale.
Deltek Costpoint brings together the controls, transparency, and automation needed to not only
meet compliance requirements but to thrive within them. Whether you’re navigating the gray areas of cost
allowability, establishing defendable indirect rates, or preparing for your next audit, Costpoint provides
the infrastructure to stay ahead, secure, informed, and always ready.
When compliance is baked into your system rather than bolted on, it ceases to be a burden and
becomes a strategic asset. That’s the Deltek difference
Apr 28, 2025
Securing the Future: The Critical Role of Cybersecurity in Government Contracting
In an increasingly interconnected and digitized world, cybersecurity has become a foundational concern
across all sectors. Nowhere is this more pressing than in the Government Contracting (GovCon) space,
where sensitive data, intellectual property (IP), and, most importantly, national security interests
converge. Over the past several years, the volume and sophistication of cyberattacks have grown
exponentially, costing American companies billions of dollars to combat. For government contractors, the
cornerstone of American defense and manufacturing, the stakes are even higher.
Nation-state cyberattacks and increasingly advanced threat actors have turned their focus toward the
critical systems and data managed by government contractors. From defense technology to civilian
infrastructure support, GovCon organizations are prime targets for malicious activity. In response, the
U.S. federal government has significantly ramped up its cybersecurity mandates to protect both Federal
Contract Information (FCI) and Controlled Unclassified Information (CUI).
Understanding the Regulatory Landscape
To address these vulnerabilities, several key compliance frameworks have been introduced, each
demanding stringent security standards from contractors:
● Cybersecurity Maturity Model Certification (CMMC): A tiered framework introduced to
ensure that DoD contractors protect FCI and CUI through verified cybersecurity practices.
● DFARS 252.204-7012: Requires contractors to implement NIST SP 800-171 controls and utilize
FedRAMP Moderate equivalent Cloud Service Providers.
● NIST SP 800-171: The National Institute of Standards and Technology outlines the best practices
and requirements for safeguarding sensitive information in federal systems.
● FedRAMP: The Federal Risk and Authorization Management Program provides a standardized
approach to security assessment and authorization for cloud products and services.
● ITAR: International Traffic and Arms Regulations control the export of defense-related tech and
data, adding another layer of security requirements.
Failure to meet these regulations can result in steep fines and loss of contract eligibility, potentially
leading to reputational damage. More importantly, non-compliance opens the door to serious security
breaches that could compromise national security.
Deltek: A Trusted Ally in Cybersecurity Compliance
Recognizing the complexity of today’s security landscape, Deltek has made significant investments in
information security, ensuring that its customers are not only compliant but well-protected. Deltek
leverages decades of GovCon industry experience to offer purpose-built solutions that help contractors
stay ahead of evolving cybersecurity threats.
Deltek provides a robust, multilayered approach to security through its comprehensive suite of ERP and
business solutions tailored to the unique needs of government contractors. Notably:
● GovCon Cloud (GCC) and GovCon Cloud Moderate (GCCM): These environments are built
with NIST SP 800-171 controls and designed specifically for government contractors, ensuring
compliance and security at scale.
● Costpoint GCCM: Achieved FedRAMP Moderate Ready status and includes a cyber incident
reporting framework to support DFARS 252.204-7012 requirements.
● ITAR Support: Costpoint GCCM is entirely hosted within the continental U.S. and adheres to
ITAR export control requirements.
● Replicon Enterprise Time Tracking: Achieved FedRAMP Low Authorization, ensuring secure,
compliant time-tracking capabilities.
Beyond Compliance: A Strategic Advantage
Meeting cybersecurity standards is more than a legal obligation—it’s a competitive advantage.Government contractors that proactively invest in cybersecurity are better positioned to:
● Secure more contracts by demonstrating compliance and reliability.
● Build stronger relationships with federal agencies and prime contractors.
● Protect their intellectual property and operational integrity.
● Differentiate themselves in a crowded, high-stakes market.
Deltek enhances this strategic advantage by offering tools that scale with a company’s needs. With
adaptive features such as low-code customization, Robotic Process Automation (RPA), digital signatures,
private blockchains, and secure integrations via Unionpoint (Deltek’s iPaaS platform), organizations can
not only comply but innovate securely.
A Partner in an Evolving Threat Landscape
As the threat landscape continues to evolve, so too must the tools and partners organizations rely on.
Deltek remains committed to helping government contractors strengthen their cybersecurity posture by
continuously investing in cutting-edge security technologies, compliance updates, and industry-leading
practices. By aligning its offerings with regulatory demands and anticipating future threats, Deltek
empowers contractors to stay secure, compliant, and competitive.
In the GovCon world, where trust, performance, and security are non-negotiable, Deltek stands as a
steadfast partner, offering the tools, technology, and expertise needed to thrive in a high-risk digital
environment.
Apr 7, 2025
Enterprise ERP Technology Value Matrix 2024: Navigating Market Complexity with
Advanced Solutions
Introduction
The persistent market uncertainty and evolving geopolitical risks of 2024 have reinforced
the need for enterprise-grade ERP systems that provide organizations with the agility and
resilience to adapt. As businesses seek to do more with fewer resources, advanced ERP solutions
have become critical for managing complexity across multiple geographies, business lines, and
entities. In this context, functionality and usability are key differentiators among ERP providers,
influencing the value they deliver to organizations navigating compliance, AI integration, and
real-time analytics demands. The Enterprise ERP Technology Value Matrix, by Nucleus
Research, provides a current snapshot of the ERP market, positioning vendors based on
usability, functionality, and customer value realization. In this landscape, Deltek stands out as an
expert provider, offering a comprehensive suite of project-based ERP solutions tailored to
industries requiring specialized compliance, project management, and financial functionalities.
The Evolution of Enterprise ERP in 2024
ERP systems have evolved to address growing business challenges, with key trends shaping the
market:
AI Integration as a Competitive Differentiator
Artificial Intelligence (AI) has become a standard expectation in ERP solutions. Nearly
all vendors are incorporating generative AI and machine learning to improve processes.
However, differentiation among vendors lies in the value-driven application of AI, particularly in
conservative natural language processing (NLP) use cases that streamline productivity without
compromising data security.
Deltek’s approach to AI emphasizes automation and efficiency, leveraging Robotic
Process Automation (RPA) and adaptive interfaces to reduce manual workloads and enhance
decision-making. Additionally, Deltek Unionpoint, its Integration Platform as a Service (iPaaS),
enables seamless connectivity between Deltek ERP solutions and third-party applications,
enhancing operational automation without exposing data to third-party LLM APIs—a significant
concern for many enterprises.
Regulatory Compliance and Global Expansion
Organizations face increasingly complex regulatory requirements across multiple
jurisdictions. Enterprise ERP solutions must incorporate automated compliance features that
facilitate adherence to industry-specific regulations while providing real-time visibility into
compliance status. Deltek’s solutions, particularly Costpoint, are designed for industries like
government contracting, aerospace, and defense, ensuring alignment with stringent requirements
such as DFARS, ITAR, and CAS.
Beyond regulatory compliance, Deltek employs private blockchains, digital signatures,
and automated bank feeds to strengthen auditability and trust with stakeholders. These
innovations reduce the risks of non-compliance penalties and operational disruptions while
supporting seamless regulatory transitions.
The Rising Importance of Analytics in ERP Selection
Organizations are increasingly data-driven, seeking advanced, out-of-the-box analytics
capabilities that enhance decision-making across business functions. In the 2024 Value Matrix,
vendors are evaluated based on their ability to provide real-time insights across key operational
areas, including finance, supply chain, project management, and HR.
Deltek’s suite of ERP solutions prioritizes data-driven decision-making by offering built-in
business intelligence (BI) tools and adaptive scorecards. These capabilities enable organizations
to gain actionable insights, ensuring they remain competitive in an environment where timely
and informed decision-making is paramount.
Deltek’s Position in the ERP Value Matrix
Deltek is recognized as an expert provider in the Value Matrix, demonstrating high
functionality tailored to project-based industries. With Costpoint, Vantagepoint, Maconomy,
Ajera, WorkBook, and ComputerEase, Deltek serves a broad clientele, including:
● Government contractors (IT, engineering, and manufacturing)
● Architecture and engineering firms
● Large professional service firms
● Marketing agencies
● Construction companies
Deltek’s modular approach supports low-code customization, enabling businesses to scale
and adapt their ERP functionalities as needed. Its focus on automation, compliance, and analytics
ensures it remains a top choice for project-driven enterprises, offering value beyond traditional
ERP systems.
Feb 25, 2025
The Importance of Quality Management Systems in Aerospace & Defense
What is a Quality Management System (QMS)?
A Quality Management System (QMS) is a structured framework that defines an organization’s
quality policies, objectives, and processes to ensure products meet regulatory, safety, and
performance standards. In aerospace and defense (A&D) manufacturing, where precision and
reliability are non-negotiable, a well-implemented QMS provides the foundation for operational
excellence and compliance with stringent industry regulations.
A QMS encompasses several core functions, including document control, process
standardization, risk management, and continuous improvement initiatives. By maintaining
consistent quality throughout the production cycle, manufacturers can mitigate risks by
enhancing efficiency, thereby ensuring customer satisfaction.
The Critical Role of QMS in Aerospace & Defense Manufacturing
Quality control in A&D manufacturing is crucial due to the high stakes involved in product
safety, operational reliability, and compliance with industry regulations. Even minor defects can
lead to catastrophic failures, making robust quality assurance and quality control an imperative.
● Ensuring Product Integrity: Components in aircraft, defense systems, and space
technology must withstand extreme conditions. Quality control measures such as
inspections, material testing, and performance evaluations prevent defects that could
compromise safety.
● Regulatory Compliance: Industry standards such as AS9100 and ISO 9001 govern A&D
manufacturing. These certifications ensure that manufacturers adhere to best practices
and are recognized by regulatory bodies like the Federal Aviation Administration (FAA)
and the Department of Defense (DoD).
● Supplier and Production Oversight: Many A&D manufacturers rely on a complex supply
chain. A robust QMS ensures supplier quality, traceability of materials, and adherence to
compliance requirements.
Effective quality control also minimizes costly recalls, production downtime, and reputational
damage, reinforcing the importance of a QMS in delivering mission-critical products.
TIPQA: The Premier QMS Software for A&D
To meet the rigorous demands of A&D manufacturing, organizations need a QMS that integrates
seamlessly with enterprise systems while providing comprehensive quality oversight. TIPQA by
Deltek TIP Technologies stands out as a best-in-class solution, offering a digitized approach to
quality management that enhances accuracy, compliance, and operational efficiency.
Key Capabilities of TIPQA
● End-to-End Quality Oversight: TIPQA streamlines quality management across the entire
product lifecycle, from supplier validation to final product inspection.
● Integrated Compliance Management: With built-in compliance tracking for AS9100, ISO
9001, and FAA regulations, TIPQA helps organizations stay audit-ready and compliant.
● Nonconformance and CAPA Management: The system provides robust tools for tracking
nonconformances, implementing corrective and preventive actions (CAPA), and
mitigating risks before they escalate.
● Advanced Audit Capabilities: TIPQA facilitates internal and external audits with detailed
documentation and traceability, ensuring manufacturers meet regulatory and contractual
requirements.
● Supplier Quality Management: The software enables manufacturers to monitor supplier
performance, conduct audits, and enforce compliance with industry standards.
Competitive Advantages of TIPQA
TIPQA is not just a quality management tool—it is a strategic asset for A&D manufacturers.
Unlike generic QMS solutions, TIPQA is specifically designed for the complex regulatory and
production environments of aerospace and defense. Its Safety Element Approval from the FAA
underscores its credibility and commitment to high-quality standards.
By leveraging TIPQA, manufacturers can:
● Improve first-pass yield rates and reduce scrap and rework.
● Enhance collaboration between engineering, production, and quality teams.
● Maintain comprehensive documentation and traceability for audits and compliance.
Integrating QMS with ERP and Enterprise Systems
A modern QMS cannot operate in isolation; it must integrate with Enterprise Resource Planning
(ERP) and other enterprise systems to provide a holistic view of quality and manufacturing data.
This integration enhances visibility, reduces manual data entry, and ensures quality remains a
core focus throughout the production process.
TIPQA and Deltek Costpoint: A Unified Solution
For A&D manufacturers using Deltek Costpoint, TIPQA offers seamless integration to create a
unified environment for quality and manufacturing management. Key benefits of this integration
include:
● Real-Time Quality Data Synchronization: TIPQA and Costpoint work together to provide
real-time visibility into quality metrics, enabling proactive decision-making.
● Paperless Shop Floor Execution: With TIP Shop Floor Execution, quality and production
data are digitally linked, eliminating inefficiencies associated with paper-based processes.
● Closed-Loop Quality Control: Quality issues detected on the shop floor can trigger
immediate corrective actions within TIPQA, ensuring continuous improvement.
● Open API Integration: TIPQA supports multiple ERP interfaces, including SAP and
Oracle, allowing manufacturers to integrate quality management with their existing
enterprise solutions.
Enhancing Operational Efficiency Through Integration
Integrating QMS with ERP unlocks several operational benefits:
● Automated Compliance Tracking: Ensures adherence to industry standards without
manual intervention.
● Improved Resource Planning: Aligns quality data with inventory and production
schedules, optimizing workflows.
● Data-Driven Decision Making: Provides executives and managers with actionable
insights to drive efficiency and quality improvements.
By aligning QMS with ERP, A&D manufacturers gain a true enterprise-wide picture of quality,
ensuring that quality management is not just a compliance requirement but a strategic advantage
in a competitive industry.
Conclusion
A robust Quality Management System is essential for Aerospace & Defense manufacturers to
ensure product reliability, regulatory compliance, and operational excellence. TIPQA by Deltek
TIP Technologies stands out as the premier QMS solution, offering comprehensive quality
oversight, seamless ERP integration, and industry-specific features that help manufacturers
maintain the highest quality standards while improving efficiency.
By leveraging TIPQA and integrating it with Deltek Costpoint, manufacturers can optimize their
quality processes, reduce risks, and drive continuous improvement—ensuring long-term success
in the highly regulated and competitive A&D sector.
Jan 13, 2025
Talent Acquisition in the Aerospace and Defense Industry: Challenges and
Strategic Responses
The aerospace and defense (A&D) industry faces a critical challenge: a growing talent shortage
compounded by rising employee turnover and heightened competition from other sectors. As
companies ramp up production to meet increasing demand, driven by rebounding air travel,
heightened geopolitical tensions, and renewed interest in space exploration, the need for a robust
workforce strategy has never been greater.
Rising Turnover and Workforce Pressures
The A&D sector is grappling with significant turnover, with 69% of companies reporting
increased attrition in the 2022 fiscal year. This mirrors broader labor market trends: in 2021, 47
million Americans quit or changed jobs, driven by a desire for better pay, career advancement,
and flexibility. These pressures are acutely felt in A&D, where companies not only compete
within the industry but also face stiff competition from technology and other sectors seeking
employees with technical expertise. Beyond turnover, 41% of companies noted worsening employee engagement in the 2022 fiscal
year. The lingering effects of the COVID-19 pandemic, including supply chain disruptions and
operational challenges, have exacerbated these issues, making workforce management a top
priority. While the pandemic is years behind us now, data sourced from previous years can
inform A&D contractors about how to navigate this delicate landscape in the present and the
future.
Adapting to a New Talent Landscape
To address these challenges imposed by the hardships of the Covid years, many A&D companies
are reimagining their talent strategies, focusing on four key areas:
1. Strengthening Employee Value Propositions (EVP):
Companies are enhancing their EVPs by offering programs that emphasize mental
well-being, leadership development, and technical education. Many are also focusing on
career development, employee recognition, compensation improvements, and flexible
work arrangements to attract and retain talent.
2. Flexible Work Models:
While remote work remains challenging for high-touch manufacturing roles, 65% of
respondents believe they have successfully implemented flexible work arrangements,
including staggered shifts and four-day workweeks. Hybrid and remote work options
have also expanded for eligible employees, reflecting broader trends toward workplace
flexibility.
3. Reskilling and Upskilling:
A&Dcompanies are investing in upskilling initiatives focused on digital skills, data
analytics, AI, machine learning, and cybersecurity. Partnerships with universities to offer
STEMcourses and mentorship programs are helping bridge the skills gap, ensuring a
pipeline of future-ready talent.
4. Diversity, Equity, and Inclusion (DEI):
DEI remains a priority, with many companies launching detailed DEI strategies that
include executive advisory boards and benchmarking reports. These initiatives aim to
improve diversity across gender, supplier demographics, and other key metrics, fostering
a more inclusive workforce.
Flexible Work: A Key Differentiator
The Covid-19 pandemic accelerated the adoption of flexible work arrangements in A&D. 84% of
companies now offer remote options, while 72% have hybrid models requiring some in-person
presence. Flexible hours are also widespread, although their adoption dropped slightly from 85%
to 81%. As companies explore long-term solutions, they are evaluating real estate needs, with
78% planning moderate to extensive changes to their real estate strategies.
Balancing flexibility with the need for on-site work in manufacturing roles presents ongoing
challenges, but the sector is committed to finding sustainable models that support both business
needs and employee preferences.
Strategic Workforce Transformation
Looking ahead, A&D companies recognize the imperative to transform their workforces to meet
future demands. This includes developing a more dynamic, hybrid workforce equipped with
digital and technical skills. Automation and new operating models will play a critical role in
driving efficiency and innovation.
Deltek Costpoint: Supporting Talent Acquisition and Management
Deltek Costpoint offers A&D companies a strategic advantage by streamlining HR and talent
management processes. Its integrated, automated HR tools simplify recruitment, onboarding, and
compliance, allowing HR teams to focus on strategic initiatives. Costpoint’s analytics
capabilities also provide valuable insights into workforce performance and skills gaps, enabling
proactive talent planning. By fostering more agile HR practices and supporting remote work through cloud-based
solutions, Deltek Costpoint empowers A&D firms to attract and retain top digital talent in an
increasingly competitive landscape.
Conclusion
The aerospace and defense sector is at a critical juncture. To thrive in a competitive talent
market, companies must invest in innovative workforce strategies that prioritize flexibility,
career development, and inclusivity. By fostering a culture of continuous learning and embracing
new work models, A&D firms can position themselves as employers of choice, securing the
talent needed to drive innovation and growth in the years ahead.
Jan 2, 2025
We are excited to announce that Jarrod Brown, CSCP, CPIM, is joining the PDS Consulting Solutions, LLC team as a Senior Costpoint Manufacturing Consultant!
Jarrod has over 16 years of experience in the advanced materials manufacturing industry, including 14 years with ATK/Northrop Grumman (NGC). During this time, he held various Supply Chain leadership roles, overseeing production control and operations planning, inventory management, MRP analysis, procurement, and logistics activities. In 2014, Jarrod was part of the ATK/NGC Costpoint implementation team, where he gained advanced expertise in Costpoint, TipQA, and EWI systems. Over the subsequent 10 years, he continued to work within the business, leveraging and expanding his knowledge of these systems. His numerous Supply Chain roles deepened his expertise in the materials modules within Costpoint, establishing him as a Subject Matter Expert (SME) in many areas. Jarrod earned his Bachelor of Science in Supply Chain Management from Weber State University in Ogden, Utah. He also holds APICS CPIM and CSCP certifications through the Association for Supply Chain Management (ASCM).
