Jul 29, 2025
Congratulations, Jarrod!
Please join us in congratulating Jarrod Brown, CSCP, CPIM on his well‑deserved promotion to Director of Materials and Manufacturing here at PDS Consulting Solutions, LLC!
Jarrod has consistently demonstrated exceptional leadership, deep industry expertise, and a commitment to driving innovation in the materials and manufacturing space. His work has been instrumental in helping our clients streamline operations, strengthen compliance, and achieve lasting results.
We’re excited to see the impact Jarrod will continue to make in this new role as he guides our team and partners toward even greater success.
Congratulations, Jarrod—your dedication and vision inspire us all!
Jul 17, 2025
Understanding Government Contract Types in the Aerospace & Defense
Industry: A Guide
Introduction
The Aerospace & Defense sector operates in one of the most demanding contracting
environments in the world. Working with the U.S. government (especially agencies like the
Department of Defense) requires not only technical expertise and operational excellence but also
a firm grasp of the types of contracts used in federal procurement. Each contract type comes with
its own risk profile, regulatory requirements, pricing mechanisms, and accounting obligations.
This guide provides a practical overview of the major contract types used in A&D government
contracting, along with insights into how a purpose-built ERP like Deltek Costpoint supports
effective management and maintains compliance for each.
Before addressing each of the contract types, it is important to first understand the risk inherent to all government contracts.
Risk in Government Contracting:
In the context of government contracts, risk refers to the potential for loss, non-performance, cost
overruns, legal exposure, or reputational harm that may arise during the execution of a contract
with a government agency (in this case, specifically the DD). These risks can stem from
financial, operational, legal, or compliance-related factors, and they vary depending on the
contract type, scope, terms, and agency involved. These types will be expanded upon later.
Types of Risk in Government Contracts
● Financial Risk
○ Unanticipated costs not reimbursed under fixed-price contracts
○ Inaccurate pricing or bid assumptions
○ Cash flow constraints due to delayed payments
● Performance Risk
○ Failure to deliver on scope, schedule, or quality requirements
Technical or logistical challenges in meeting contract specifications
○ Inability to hire or retain skilled labor
● Compliance Risk
○ Noncompliance with federal regulations such as FAR, DFARS, CAS, or ITAR
○ Inadequate timekeeping or cost allocation practices
○ Data security or CMMC-related violations
● Regulatory and Audit Risk
○ Adverse findings from DCAA, DCMA, or IG audits
○ Disallowed costs or questioned expenses
○ Termination for default or cause
● Reputational Risk
○ Negative outcomes that affect eligibility for future contracts
○ Public scrutiny or whistleblower actions
○ Loss of trust from agency customers or prime contractors
● Legal Risk
○ Contract disputes or claims under the Contract Disputes Act
○ False Claims Act exposure
○ Breach of contract or subcontractor litigation
Risk Allocation by Contract Type
● Fixed-Price Contracts shift most of the risk to the contractor. You must deliver the
project at the agreed-upon price, even if costs rise
● Cost-Reimbursement Contracts shift more risk to the government but increase
compliance burdens and audit exposure.
● Time-and-Materials Contracts involve shared risk but may require careful tracking and
justification of hours and materials.
1. Fixed-Price Contracts
Definition: In a fixed-price contract, the government agrees to pay a set amount for a defined
product or service, regardless of the contractor’s actual costs.
Subtypes:
● Firm-Fixed-Price (FFP): Most common. Contractor bears full risk.
● Fixed-Price Incentive (FPI): Offers incentives for cost savings or performance
milestones.
● Fixed-Price with Economic Price Adjustment (FPEPA): Used when costs are likely to
fluctuate over time (e.g., fuel, metals).
Implications for A&D: FFP contracts are favored for mature technologies with predictable costs. However, in A&D,
where complexity and long project timelines are common, cost overruns can erode margins
quickly.
How Deltek Costpoint Helps:
● Tracks actual vs. target costs in real-time
● Alerts users to budget deviations early in the project lifecycle
● Supports detailed work breakdown structures (WBS) for high-cost visibility and control
2. Cost-Reimbursement Contracts
Definition: The government reimburses the contractor for allowable costs and typically pays a
fee (fixed or incentive-based) for performance.
Subtypes:
● Cost-Plus-Fixed-Fee (CPFF)
● Cost-Plus-Incentive-Fee (CPIF)
● Cost-Plus-Award-Fee (CPAF)
Implications for A&D:
These contracts are used for high-risk R&D, prototyping, or mission-critical systems where final
cost is uncertain. They shift more risk to the government and demand strong cost control and
audit readiness from the contractor.
How Deltek Costpoint Helps:
● Enforces allowability and allocability rules under FAR and CAS
● Enables rigorous timekeeping and labor cost attribution
● Provides automated indirect cost rate calculations and reallocation
3. Time-and-Materials (T&M) Contracts
Definition: Contractors are paid for labor (at pre-negotiated hourly rates) and materials used,
with limited government oversight of efficiency.
Implications for A&D:
T&M contracts are suitable for short-term technical services, testing, or maintenance. They
carry moderate risk and require vigilant tracking of labor and materials to avoid disputes.
How Deltek Costpoint Helps:
● Facilitates accurate time tracking and labor category classification
● Provides audit trails and labor cost validation
● Supports billing based on approved labor and material rates.
4. Indefinite Delivery Contracts (IDCs)
Definition: Includes IDIQ (Indefinite Delivery/Indefinite Quantity), task order, and delivery
order contracts. These contracts provide flexibility for the government to issue work as needed.
Implications for A&D:
IDCs are commonly used for systems integration, logistics, and sustainment. They require
modular contract management and adaptable resource planning.
How Deltek Costpoint Helps:
● Manages funding and ceiling amounts across multiple task orders
● Tracks costs and performance metrics at both contract and task order levels
● Enables compliance with funding and obligation limits
Managing Risk and Compliance Across Contract Types
Each contract type carries distinct obligations related to billing, reporting, cost accounting, and
compliance. In the A&D space, compliance isn’t just a best practice, it’s essential for contract
retention and audit survival.
Key Regulatory Considerations:
● FAR (Federal Acquisition Regulation)
● CAS (Cost Accounting Standards)
● DFARS clauses (especially for DoD contracts)
● DCAA/GAO audit readiness
● ITAR/EAR compliance for export-controlled technology
Deltek Costpoint’s Edge:
● CAS-compliant cost allocation engine
● DCAA-ready audit documentation and reporting
● Project accounting integrated with procurement, inventory, and manufacturing
● Native support for WAWF (Wide Area Workflow) and other federal invoicing system
● Project accounting integrated with procurement, inventory, and manufacturing
● Native support for WAWF (Wide Area Workflow) and other federal invoicing systems
Concluding Thoughts
Understanding government contract types is fundamental for success in the A&D contracting
world. The ability to execute these contracts efficiently (and stay compliant while doing so) can
be the difference between growing your federal portfolio and losing ground to competitors.
Deltek Costpoint empowers contractors with the tools needed to manage every aspect of contract
performance, whether it be from budgeting and cost control or billing and audit prep, on a single,
integrated platform built for the unique needs of contractors in the A&D industry.
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.
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).
