Effective Business and Cost Competitive Strategies

Presenter(s):

Robert E. JonesContracts Manager & Compliance OfficerPole/Zero Corporation

Session 2, 12:##p.m.-1:## p.m. (EST)

Audits Virtual Conference 2014

March 25, 2014 ▪ 12:00 p.m.-4:00p.m. (EST)

Agenda

• Creating cost elements and competitive rates• Aligning company audit objectives with

business development goals• Incorporating effective business strategies

into daily activities• Managing cost pools for successful rates

Audits are Uncomfortable!

What if Audits were Awesome?

The Current Scenario

The Current Scenario

My First Audit

What did I learn from that audit?

1. Follow the rules2. Always be prepared3. When you have a copy of the test, use it!

My Second Audit

What did I learn from that audit?

1. Know where you are.2. Know where you want to go.

Why an Audit

• Preaward survey• Price reasonableness• Government Property Management System• Part of the business process – WHEN, not IF

You have the Checklist!

Where to Find Success

•Thorough analysis•The bottom line never changes!

What You Can Achieve!

• Business Systems Rule DFARS 242.70• Six Business Systems

What Pole/Zero Accomplished

• Created new cost elements and developed new rates

• Aligned company audit objectives with business development goals

• Incorporated effective business strategies into daily activities

• Manage cost pools

Cost Elements & Competitive Rates

• More direct work lowers OH and G&A rates• What are the cost elements? How are the cost

pools structured?• Create new cost pools• The bottom line never changes - only

rearranging how rates are presented• Competitive rates help win awards

Align Audit Objectives

• Business development participated in changes

• Business development had a vested interest in competitive rates

• Business development wanted better information for Basis of Estimate

Incorporate Business Strategies

• Do what customers and auditors expect

Manage Cost Pools

• Monthly reports and meetings• Adjust rates as necessary

Where Are You Today?

• Need thorough analysis to identify source of the problem(s)

• Time collection system• Cost collection system

Implement Good Practices

Audit Lifecycle

• Gain an understanding of the business• Brainstorm risks and opportunities• Develop hypotheses and set priorities• Analyze risks and test controls• Assess results and brainstorm solutions• Report recommendations for positive change• Begin your next challenge

Nirvana

Remember My Opening Story?

Contact Information

Robert E. Jones

Pole/Zero Corporation

Contracts Manager

www.PoleZero.com

Left Brain Professionals

Read the Answers Blog

www.LeftBrainPro.com

Questions? robert@leftbrainpro.com

QUESTIONS?

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END

Thank you for participating in today’s program.