In an environment of ever-shifting funding priorities and regulatory requirements, government contractors benefit from the support of experts through every stage of a contract’s life cycle. FTI Consulting provides a wide array of government contractor advisory services that address the strategic, financial, operational, reputational, regulatory and capital needs of large and small prime contractors and subcontractors. Clients lean on our senior professionals’ regulatory and industry expertise, and our track record of success advising clients in industries such as aerospace and defense, biotechnology, construction, healthcare, manufacturing, pharmaceutical, government services, software and technology.
When you partner with us, you benefit from the deep expertise of our global team. We have decades of experience from previously serving in senior financial management roles within government agencies and the private sector, as well as with Big 4 accounting and other reputable consulting firms.
How We Help
Operational & Performance Improvement Services
In a market of increasing change and competitive pressures, we provide rigorous analysis and a proprietary toolkit for fact-based decision making and lasting operational improvement. This approach promotes change while allowing management to focus on day-to-day operations.
Engage us for services such as:
- Performance improvement and project management office. We provide overall strategic direction to performance improvement and/or merger integration teams. Our experts help identify and develop centers of excellence (COEs), make go/no-go decisions on plans, monitor day-to-day coordination of individual teams and overall processes, coordinate with relevant subject matter experts, and track and report back to steering committees to ensure strategy is executed and all milestones and goals are achieved as planned. We also help measure and monitor the effectiveness of business development, evaluating channels and alignment of business development personnel, developing business development incentive plans, and analyzing the capture management process. In addition, many clients engage us for product and market analysis and optimization, as well as cost optimization and alignment. We track division and contract profitability, monitor operational processes, evaluate fixed asset holdings, and assess human capital allocations.
- Core business systems improvement. Clients engage us to assess and develop solutions to improve business systems performance, drawing on our deep expertise in billing, budget and forecasting, estimating, purchasing, supply chain, property management, compensation, and information technology (IT). When you partner with us, we document and evaluate current systems and system controls, evaluate compliance with business systems rules from government agencies, and develop remediation plans for deficiencies identified, either as a result of internal assessment or external (e.g., DCAA or DCMA) audit. We are also adept at developing and implementing compliance manuals, policies and procedures, tools and training manuals.
- Process and system implementation. Let us help you obtain an understanding of system infrastructure and applications with respect to future growth targets, including human capital and outsourced agreements. We can assess processes and procedures, including IT systems (proprietary and commercial — age/version, license compliance, IT infrastructure, hardware inventory, voice and data networks, security, scalability and policies). We also evaluate organizational resources and determine possible areas of investment; identify potential risks to business systems and recommend remediation plans and policies and procedures; assist management with the setting of the IT strategy and the selection and implementation of new systems and infrastructure, including cost accounting allocation systems; and test systems compliance and highlight any deficiencies.
- Interim management. When the need arises, our highly experienced and credentialed senior team members quickly step into C-level and other senior executive roles, including CEO, CRO, COO and CFO, as well as controller, billing manager, and head of PMO.
Compliance & Regulatory Solutions
Government contracts provide companies with considerable opportunities — and potentially significant risks. When they need to ensure compliance with government regulations and contract provisions, they engage our professionals, who have the necessary expertise and track record of success.
Partner with us for assistance with:
- FAR, CAS and other regulatory compliance: Federal Acquisition Regulation (FAR) and Cost Accounting Standards (CAS) compliance consultation and compliance reviews, including development of indirect rate structures, forward pricing rates and related submissions, preparation or review of incurred cost submissions (ICS), labor and other direct cost charging reviews, labor law compliance reviews, cost allowability and allocation evaluations, CASB disclosure statement preparation, and preparation or review of cost impact analyses related to mergers, acquisitions or restructurings; business systems reviews and assessments including purchasing (CPSR reviews), materials management and accounting (MMAS), estimating, earned value management (EVM), property management and cybersecurity proactive and reactive solutions including compliance; ethics and compliance program reviews; Truthful Cost or Pricing Data (formerly Truth in Negotiations Act) reviews; False Claims Act (FCA) consulting; Foreign Corrupt Practices Act (FCPA) compliance; General Services Administration (GSA) schedule analysis and compliance reviews; and voluntary disclosures.
- Claims, litigation, mediation and arbitration services: Clients and their counsel rely on our assistance in conducting investigations, including providing forensic accounting addressing qui tam (whistleblower) claims or management’s actual or perceived concerns related to FCA violations, financial reporting irregularities and SEC compliance, FCPA violations, GSA noncompliance, noncompliance with FAR and CAS; as well as providing bid protest, purchase price dispute and merger and acquisition support services; preparing or analyzing damages calculations; preparing mandatory disclosures; preparing or reviewing Requests for Equitable Adjustment (REA) related to contract disputes and claims, including business interruption, warranty, lost profits, etc.; performing critical path schedule and delay analyses; preparing or reviewing termination settlement proposals (TSP); participating in settlement negotiations including defending basis of claim estimates; and providing expert testimony.
- Corporate governance: Process and internal control assessments; internal control development, testing and evaluation; business process re-engineering; Sarbanes-Oxley Act (SOX) compliance; enterprise risk management and strategic planning; management and board advisory services and training.
- Audit support: We collaborate with clients and their counsel to support audit preparation and management, including assisting with preparation for, and coordination of, DCAA, DCMA and other regulatory audits; preparing responses addressing audit findings; developing remediation plans to mitigate risks related to audit findings; conducting risk assessments, independent reviews and mock audits prior to regulatory audits; providing pre-award and historical audit support; and serving as liaison between clients and government agency auditors.
- Other support services: Let us provide you contract administration assistance and analyses, such as proposal preparation and review, defective pricing (Truthful Cost or Pricing Data) and price reduction reviews, time reporting surveys and compliance reviews, engineering change proposals, and planning and scheduling services. We are also experienced in structuring incentives for performance-based contracts, as well as in best value analysis and in evaluating adequacy of support related to representations and certifications. In addition, we help clients develop cost and pricing strategies compliant with applicable federal regulations, provide training to financial and program managers, conduct GAAP reviews, and provide other accounting assistance.
Transaction M&A Services
Our team of multidisciplinary advisors provides a unique combination of financial and operational expertise through every critical stage of a transaction’s life cycle. From pre- to post-closing, we work side by side with you to develop and execute acquisitions, mergers and carve-outs.
Engage us for merger and acquisition (M&A) support services. Our experts:
- Analyze and normalize quality of earnings, working capital, and debt and debt-like items
- Evaluate accounting control environment, policies and processes
- Understand revenue recognition policies and compliance with GAAP
- Evaluate historical and forecast operating results
- Schedule and analyze contract values, funding, backlog, historical and projected revenues and cash flow (“waterfall”)
- Perform balance sheet and working capital reviews
- Evaluate business development pipeline and the capture management process
- Perform commercial and IT diligence
- Obtain an understanding of a company’s overall structure, review tax returns, and assess risks and alternative tax structures
Clients also engage us for operational and financial restructuring support and advisory. Let us assist you with:
- Business plan review, diagnostics analysis (strategic and valuation assessment), and liquidity assessment
- Recommendations of refinancing alternatives in or out of court and identification of tax issues
- Contingency planning, including liquidity management
- Claims management
- Interim management (e.g., CEO, CRO, COO and CFO roles)
- Assistance with capital raise, refinancing transactions, covenant waivers and credit facility renegotiations
- Transaction planning (covenant setting, structuring and tax issues)
- Creditor rights
- Operational performance and capital structure reviews
- Strategic and exit strategy
Our business plan and strategic forecasting services are delivered in several key phases. Working in tandem with management, we:
- Understand structure of the business, key inputs, and risks surrounding forecasting, methodology and assumptions
- Develop template and key assumption
- Compare and discuss with management initial projections to actuals and modify assumptions and model
- Monitor variances of projections and adjust accordingly
- Automate forecasting and reporting
- Standardize and automate schedules and templates used for input
- Improve management procedures, controls and accuracy of inputs
- Modify expectations and culture to emphasize importance of accurate forecasting
Our professionals are also renowned for their experience in valuation and purchase price disputes. Let us help you end to end with:
- Carve-outs: We evaluate strategic goals and financial alternatives; perform sell-side due diligence (commercial, financial, tax and structuring reviews); understand value issues and develop near-term fixes; assist in preparation of carve-out financial statements and formulation and distribution of offering memorandum and presentations; oversee bid process, data room setup and management follow-up; and valuate offers and assist in negotiations and board transaction approval.
- Valuations: Clients engage us to prepare purchase accounting valuations (FASB ASC 805 and 350), fair market value, fairness and solvency opinions; offer expert witness testimony; assist in purchase price disputes and GAAP accounting; determine risk exposure for a purchase price adjustment and assess whether GAAP has been consistently and correctly applied; and liaise with auditors and the SEC.
Strategic Communications Advisory Services
Management teams turn to our experts to learn how to make more and better informed strategic decisions and to communicate business imperatives to achieve desired results, mitigate risk and manage an organization’s brand, reputation and valuation. We help them develop and deliver consistent and sustainable messaging across all stakeholders, including government authorities, legislative and regulatory bodies, internal, commercial, press, financial and shareholders.
Let our experts assist you with:
- Corporate branding and reputation and crisis management: We help you develop communications strategies that build and protect the enterprise; communicate comprehensive multi-stakeholder brand communications plans that are actionable across an organization and are measurable against key performance indicators; and formulate communications strategies for transformational and event-driven branding challenges — such as a change in business strategy, organizational growth or crisis management, or the need for thought leadership or management of external issues such as regulatory investigations.
- Sustainability and government relations: We are equipped to benchmark an organization’s sustainability efforts across all sectors to understand its position relative to public policy, the marketplace, competitors and best-in-class corporate leaders; to create effective sustainability communications programs, working with organizations to manage media, analyst and government/legislative relations and sustainability rankings; and to consult on the critical requirements related to accurate disclosure reporting and identify forums where a company can raise awareness for and deepen its engagement.
- Market entry and expansion: Our experts provide strategic communications counsel and execution to help clients enter new markets, expand in existing markets and analyze market entry options. Engage us to ensure that market entry strategies are communicated effectively to key stakeholders in a new market and in existing markets. We help you anticipate and plan for potential obstacles associated with market entry, from product differentiation to adaptation of the cultural and political realities of a new geography.
- Leadership positioning: We are expert in developing strategic positioning platforms for CEOs designed to advance a company’s business strategy. Clients rely on us to develop a successful strategy that positions the CEO’s knowledge, leadership and engagement on industry-leading topics, public policy and matters of national importance, maximizing the impact of the CEO’s role to further enable a company’s business goals and enhance its enterprise value.
Senior Managing Director
Senior Managing Director
Senior Managing Director, Global Head of Public Affairs & Government Relations
Senior Managing Director, Leader of Private Capital Advisory Services