14 July 2014

Nimbleness is Critical for Government Contractors


Successful government contractors typically function at the high level of nimbleness required to weather change in the regulatory and business climate, and win more profitable contracts. The largest government contracting enterprises often find it easier than smaller companies to respond effectively to changes affecting them. Modern technology—such as our To-Increase GovCon solution—enables large as well as smaller government contractors to refine their processes and systems to be compliant, agile, and competitive. They can take advantage of the same tools to broaden their portfolio of products and services, or enter additional markets.

While much federal contract funding goes to the largest government contractors, smaller companies win many contracts and perform a huge amount of the government contracting projects awarded. For these organizations, the relative cost of doing business with the government can be more substantial. They often lack the tools and resources that make it easier for their larger competitors to accommodate changing regulatory requirements such as the recent proposed adjustments to nonconformance rules or an increase in the federal minimum wage.

Facing change, many smaller government contractors look for a broader spread of revenue sources to boost their business viability. They diversify their business by adding services to their manufacturing or construction activities, or develop commercial accounts in addition to their public-sector clients. These risk mitigation strategies come with their own challenges. For one thing, maintaining visibility and controlling your entire business becomes a much greater task when you cater to very different types of customers or add entire lines of business to your operation. And, when you deliver additional services or other offerings to government clients, your compliance burden may become that much more demanding and complex. Increased regulatory demand prompted by more, changing rules means you need to become more nimble to keep up.

At great cost, some government contractors deploy separate business management systems to run their government and commercial activities. That gives them the ability to apply different rules and build best-fit workflows, but their visibility and planning capability can become so poor that they create new risks to their profitability and competitiveness.

When we built To-Increase GovCon for Microsoft Dynamics AX, we designed it so you could run your commercial and public sector business within the same solution. You can perform, for example, manufacturing and deliver services to either market, and keep the two separate as regards business rules and compliance. But, at an executive level, you can control and direct the entire company as a single entity. Within the same application, you can, for instance, run engineer-to-order and make-to-stock manufacturing as well as professional services, and centrally manage all contracts and clients, in government or the private sector. RapidValue, our business process management tool, comes with many standardized, proven processes you can use in your government contracting business to manage compliance, contracts, and projects efficiently. By using RapidValue, you can develop the agility to thrive through changes and competitive challenges, in a controlled way. That gives you a chance to address change-related risk without introducing other risk elements into the business.

Let me hear your ideas and questions. Get in touch with me or contact To-Increase.

Luciano Cunha
Luciano Cunha,
Luciano Cunha,
Chief Executive Officer (CEO)

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