For government contractors with Option Year contracts. Manage Contract MOD's, employee assignments, and ODC's
If you are familiar with Option Year Funding and Contract Mod’s, you may be a prime contractor or sub-contractor for U.S. Government contracts. E.g. such as those you would receive from the Department of Defense, the DOD.
When you receive an option year contract for a project, it will contain mod’s (contract modifications) specifying exactly which employees will work on the project, which dates they will work, what their hourly rate will be during that period of performance, and how many hours are funded.
Contract mod’s also contain a list of Other Direct Costs (ODC’s). These amounts are treated as revenue income for the project.
The product features as seen in this video allow contract administrators to enter new option years, contract mod’s, employee assignments, and odc’s for the purposes of documenting contracts and automating project billing. Since the period of performance and a labor rate are specified for each employee assigned to the mod, the program can automatically choose the correct rate for any time period during the execution of the project. You simple enter your option year, first mod, and the employee assignments. The program does the rest.
And what exactly does it do?
1. It automatically totals employee timesheet hours under the correct option year and mod. 2. It automatically chooses the correct labor rate for every timesheet entry. 3. It provides a natural hierarchy of documentation for every option year and every mod contract. 4. It provides rollup dashboard views of all labor hours and amounts. 5. It simplifies your contract management with the correct documentation. 6. And specifically, it answers the questions below…
- And specifically, it answers the questions below…
Are we getting close to exhausting our contract mod hours? Six clicks will give you this information! You will see exactly how many hours were funded for a given mod, how many you have used, and how many are available. That alone is a powerful piece of information. You can make business decisions based on those three numbers alone. It tells you whether you need to quickly seek another mod, or have some time to wait. It reveals how much revenue has been earned. And it fits directly into your financial planning.
Are we keeping employees busy? A special resource allocation and employee availability charts shows this. Do you have employee work scheduled out into the future, or are things getting a little lean? Since you assign employees to guaranteed time and material contracts, you know they are safe for a given date range specified by their period of performance. After that, you must earn another mod.
How much revenue have we earned on a given option year? Again, it takes just six clicks to reveal this number. All the mods roll up to the option year level, revealing the total for all employees and odc’s.
How much have we earned on a given sub-contract project? This is a similar rollup total. Just one more click reveals a whole set of rollups that tell exactly how much revenue has been funded, how many you have used, and what’s remaining. You see exactly where your project sits at this exact time.
Which employees are consistently earning contract awards? Contract mod’s list all the “Other Direct Costs” (ODC’s) awarded to employees. Run a special report to filter by employee and you’ll see who is earning the most. That helps you identify the most profitable employees.
To get started, choose Tools, Projects. Click on a project, and make sure the “Billing method” is set to “By option year rates.” After that, choose Tools, Option Year Funding. You will be able to create a new option year and your first contract mod. This lets you add employee labor assignments and odc’s that roll up to each level above them.
Why not give Standard Time® a try. You can schedule a GoToMeeting, and even download the product for yourself. You’ll likely find a good practical solution for your option year contracts.
Also see: Video: Contract Management, Part 2, Video: Contract Management, Part 3, Contract management for contractors, Option Year Funding Contracts For Your Timesheet, Video: DCAA Compliant Timesheet for Employee Hours