Solving the Biggest Contracting Challenges in the Aerospace & Defense Sector

FAR Part 15 contracts require organizations to ensure their ERP system and IT landscape align with the common Defense Business Systems (DBS) standards. However, adapting an ERP system like SAP, which is designed primarily for the commercial sector, to meet the specific requirements of defense functions such as financial management, logistics, human resources, acquisitions, contract management and government property, presents challenges for A&D customers in fulfilling their compliance obligations.

The DBS system requirements are crucial for conducting daily activities, including operations, reporting and decision-making. They help manage the entire contract lifecycle efficiently, from solicitation and proposal submissions to awards and performance tracking.

Organizations must adhere to accounting and finance requirements like cost accounting standards (CAS) and maintain proper financial controls such as indirect rates and financial. Failure to comply, as evidenced by a DCAA audit, can lead to serious consequences including payment withholds, damage to reputation and legal action.

In the past 10 to 20 years, organizations have faced gaps—also known as whitespace—in addressing these challenges. The solution often required in-house development, custom code, data export and duplication, leading to unforeseen challenges due to technical debt.