Stop managing complex government contracts in spreadsheets. Discover how XTIVIA GovCon365, built on Microsoft Dynamics 365 Business Central, automates the rules for every contract vehicle.
For growing government contractors, success is a double-edged sword. Winning more awards is the goal, but with growth comes increased complexity. You aren’t just managing more projects; you are managing a diverse portfolio of contract types, each with its own rigid set of rules for billing, revenue recognition, and compliance.
If your finance team is still relying on a patchwork of "offline" Excel spreadsheets to calculate invoices for a mix of Firm-Fixed-Price (FFP), Time & Materials (T&M), and complex Cost-Plus awards, you are facing a scalability crisis. Not only is this manual process time-consuming, but it also introduces significant risk of human error and DCAA audit findings.
There is a better way. XTIVIA GovCon365 was engineered specifically to handle the rigorous demands of federal contract management within a single, unified ERP system.
Here is how GovCon365 removes the manual burden of managing complex contract vehicles.
One System for Every Contract Type
GovCon365 is built on the robust Microsoft Dynamics 365 Business Central platform, enhanced with deep functionality tailored for federal regulations (FAR, CAS, and DCAA).
Based on technical documentation and system manuals, GovCon365 utilizes a sophisticated Contract Type Setup table. This allows you to define the rules of engagement the moment an award is won, ensuring that billing formulas and revenue recognition methods are applied automatically throughout the project lifecycle.
Here is a breakdown of how the system handles the major contract types:
1. The Cost-Plus Challenge (CPFF & CPAF)
Cost-reimbursable contracts are the hardest to manage manually because they require precise calculation of direct costs, plus the application of approved indirect rates (fringe, overhead, G&A), plus a fee.
- How GovCon365 handles it: The system uses specialized billing formulas configured to invoice labor and non-labor at Cost + Burden + Fee. It utilizes a powerful indirect cost allocation engine to apply provisional or actual rates in real-time.
- Handling Award Fees (CPAF): While some systems struggle with the subjective nature of award fees, GovCon365 includes specific setup parameters for Award Fees and Incentive Fees. This allows you to track base costs while separately managing the subjective fee components based on performance evaluations.
2. Time & Materials (T&M)
T&M contracts require a dual approach to billing that often trips up generic accounting software.
- How GovCon365 handles it: The system’s billing configuration is set to automatically invoice labor at pre-defined Sales Prices (billing rates) while invoicing non-labor expenses (like materials or travel) at Cost.
- Crucial Feature: The system includes functionality for Retroactive Rate Adjustments. If DCAA approves provisional billing rate changes after you have already invoiced, the system can automatically calculate and process the necessary retro-billing adjustments.
3. Firm-Fixed-Price (FFP)
While FFP seems simple on the surface, managing cash flow and recognizing revenue properly against milestones can be difficult.
- How GovCon365 handles it: The system supports milestone-based billing, "Fixed Unit Price" invoicing, or recurring planning lines for future periods. Crucially, GovCon365 allows you to decouple billing from revenue recognition. You can bill on milestones while recognizing revenue using an "Estimate to Complete" (ETC) method, ensuring compliance with GAAP and federal standards.
Beyond Billing: Controls and Compliance
Managing these contract types isn't just about generating an accurate invoice; it's about maintaining guardrails throughout performance. GovCon365 provides essential automated controls detailed in its technical documentation:
- Funding Limits and Ceilings: You can define maximum invoiceable amounts at the project, task, or even job category level. The system will alert project managers as they approach 75% or 85% of funding, preventing accidental overruns on T&M or Cost-Plus ceilings.
- Contract Withholding: Does your contract require holding back a percentage of fees until project completion? The system automates these withholding calculations on every invoice, ensuring you comply with contract terms without manual tracking.
- DCAA Audit Readiness: By automating these complex calculations within the ERP rather than in external spreadsheets, you create a transparent, traceable audit trail that gives DCAA auditors confidence in your systems.
The Move to Automated Contract Management
If your organization is trying to manage a hybrid portfolio of contracts using manual processes, you are limiting your growth potential. XTIVIA GovCon365 provides the specialized project accounting engine needed to turn complex contract requirements into automated, compliant workflows.
Are you ready to stop sweating the spreadsheets and start scaling your business? Contact XTIVIA today for a demo of GovCon365’s contract management capabilities.
