Change Management

Organizations change. U.S. Government requirements change. They don’t usually change in tandem. For example, a company with 90% commercial revenue suddenly wins a large U.S. Government contract. They’re now a major U.S. Government contractor with a predominantly commercial workforce. Almost overnight a once low-risk U.S. Government contractor becomes high risk. The organization ramps up operations to meet the product or service demands of its new contract. In the velocity of it all, compliance investments are not made at that time. That tremendous company provides tremendous products/services to the U.S. Government for years. Unbeknownst to the customer, DCAA audit backlogs grow. Years after the initial contract, U.S. Government auditors arrive to audit three (3) years’ worth of costs. Record retention may be a mess. Personnel responsible for billings or other compliance needs may no longer be present. The U.S. Government audits with significant findings resulting in a give-back of dollars in excess of the profits made on the contract. This happens. Contractors, whether before or after such occurrences, need to manage the requisite change within its organization. RKI has worked with a number of contractors on effecting lasting and meaningful changes in its operations, accounting, and compliance processes in compliantly performing under U.S. Government contracts.