Case Study: Federal Aviation Administration
Contracting Agency or Customer: Federal Aviation Administration
Program Title: Contract Closeout
Period of Performance: 4/30/2004 - 9/30/2009
Current Contract Value: $3,489,500.00
B.I.G. supports the Federal Aviation Administration in a full range of contract closeout and related activities, including pre-closeout, administration, contract audits, quick closeout, records management, legacy data mining, and training. FAA awarded B.I.G. a $3M follow-on directed source contract for closeout and financial reconciliation on April 30, 2004. B.I.G. has averaged a 5:1 Return On Investment (ROI) for funds allocated to contract closeout, provided the Program Manager (the only key person) and senior professional staff for the predecessor contract, resulting in award of DOT's MEDWeek Contractor of the Year for 1999.
B.I.G.’s responsibilities include facilities management for a 4000 sq. ft. facility. This includes design and installation of LAN and other facilities, as well as a $120K design/build rehab of another facility in LaPlata, MD. Services also include identification and lease of appropriate office space; design of space utilization and procurement of furniture, furnishings and supplies; computer networking and maintenance; housekeeping services; office security; files maintenance; and related facilities management activities.
Our current contract focuses on contract closeout, and has included indirect rate and incurred cost audits, financial reconciliation, and resolution of government property. These services have been performed within facilities under the direction and control of B.I.G. staff, who determine facility and equipment needs; identify space and negotiate leases; purchase, configure and network computers; build databases, forms and software applications; and in general provide a full complement of logistics services.
At the time of award, the FAA had an extraordinary backlog of final invoices awaiting payment, including many from small businesses that were not under DCAA cognizance and as a result had not been paid, in some cases for more than ten years. One small business had ten invoices that were eight or more years old, and had already dealt with two predecessor closeout contractors, neither of whom had been able to assist. B.I.G. staff performed the required indirect rate and incurred cost audits for the seven years prior to DCAA’s initial audit of the firm. Utilizing DCAM (Defense Contract Audit Manual) procedures and principles, we reviewed contractor financial statements, accounting systems and practices, examined their handling of unallowable costs, and assessed the general corporate environment. B.I.G. spearheaded negotiation of final rates and values, assisted in identifying funds for final payment, enabling the FAA to reduce its closeout backlog while relieving an extreme burden for one of their small business trading partners.
B.I.G. has provided award-winning services to the FAA for the past eight years. Initially as subcontractor and for the past two years as prime contractor, B.I.G. has performed contract administration, financial reconciliation, and closeout services, which included:
- Reviewing and analyzing inactive contracts to close them in accordance with FAR requirements;
- Performing indirect rate and incurred cost audits; Spearheading negotiations of final rates and values; Assuring financial reconciliation and assisting in identifying funds for final payment, and Enabling FAA to reduce its closeout backlog.
- Other services provided by B.I.G. have included: developing and instituting standardized formats for use by FAA contracting officers to document completed contracts properly.
- Designing, populating and maintaining a closeout data base.
- Preparing and presenting a seminar on closeout for an FAA-wide audience, which included contracting specialists/officers, engineering/technical officers, property administrators, industrial and quality assurance officers, accounts payable officers, and budget administrators.
Three of our staff members were on the team winning the DOT MEDWeek contractor of the year award. This contract also reflects other significant accomplishments:
- Instrumental in removal of material weakness condition assessed due to contract closeout office shortcomings;
- Resolution of IG audit findings as a result of B.I.G. financial reconciliation and statistical analysis effort.
- Enabling the FAA to report achievement of 140% of the Flight Plan goal related to CPFF contracts.
B.I.G.’s responsibilities include facilities management for a 4000 sq. ft. facility. This includes design and installation of LAN and other facilities, as well as a $120K design/build rehab of another facility in LaPlata, MD.
Our current contract focuses on contract closeout, and has included indirect rate and incurred cost audits, financial reconciliation, and resolution of government property. These services have been performed within facilities under the direction and control of B.I.G.I.G. staff, who determine facility and equipment needs; identify space and negotiate leases; purchase, configure and network computers; build databases, forms and software applications; and in general provide a full complement of logistics services.
At the time of award, the FAA had an extraordinary backlog of final invoices awaiting payment, including many from small businesses that were not under DCAA cognizance and as a result had not been paid, in some cases for more than ten years. One small business had ten invoices that were eight or more years old, and had already dealt with two predecessor closeout contractors, neither of whom had been able to assist. B.I.G.I.G. staff performed the required indirect rate and incurred cost audits for the seven years prior to DCAA’s initial audit of the firm. Utilizing DCAM (Defense Contract Audit Manual) procedures and principles, we reviewed contractor financial statements, accounting systems and practices, examined their handling of unallowable costs, and assessed the general corporate environment. B.I.G.I.G. spearheaded negotiation of final rates and values, assisted in identifying funds for final payment, enabling the FAA to reduce its closeout backlog while relieving an extreme burden for one of their small business trading partners.
B.I.G. has provided award-winning services to the FAA for the past eight years. Initially as subcontractor and for the past two years as prime contractor, B.I.G.I.G. has performed contract administration, financial reconciliation, and closeout services, which included:
- Reviewing and analyzing inactive contracts to close them in accordance with FAR requirements;
- Performing indirect rate and incurred cost audits; Spearheading negotiations of final rates and values; Assuring financial reconciliation and assisting in identifying funds for final payment, and Enabling FAA to reduce its closeout backlog.
- Other services provided by B.I.G.I.G. have included: developing and instituting standardized formats for use by FAA contracting officers to document completed contracts properly.
- Designing, populating and maintaining a closeout data base.
- Preparing and presenting a seminar on closeout for an FAA-wide audience, which included contracting specialists/officers, engineering/technical officers, property administrators, industrial and quality assurance officers, accounts payable officers, and budget administrators.
Three of our staff members were on the team winning the DOT MEDWeek contractor of the year award. This contract also reflects other significant accomplishments:
- Instrumental in removal of material weakness condition assessed due to contract closeout office shortcomings;
- Resolution of IG audit findings as a result of B.I.G.I.G. financial reconciliation and statistical analysis effort.
- Enabling the FAA to report achievement of 140% of the Flight Plan goal related to CPFF contracts.
B.I.G. provides facility management for the FAA closeout satellite office. Services include identification and lease of appropriate office space; design of space utilization and procurement of furniture, furnishings and supplies; computer networking and maintenance; housekeeping services; office security; files maintenance; and related facilities management activities.