"We formed a joint venture to bid on a massive federal civil infrastructure contract. We spent months running heavy BIM simulations and utilized external legal counsel to draft the complex JV agreements. Now, the government is auditing our G&A overhead rate and disallowing these pre-proposal costs, threatening us with severe disallowance penalties and slashing our billable contract multiplier."
You spent hundreds of thousands of dollars on expensive design software and legal fees to win a massive government contract. Because your accountants dumped these costs into your general overhead instead of tracking them under a specific bid code, the government is accusing you of inflating your billing rates, hitting you with massive penalties, and cutting your future payments.
Failing to isolate specialized joint-venture legal fees and high-performance BIM/simulation compute hours violates CAS 420 and FAR Part 31 cost-accumulation principles. This misclassification dilutes the direct labor denominator of your overhead rate calculation:
This permanently reduces your negotiated cost-plus multiplier and triggers retroactive cost disallowances during DCAA audits.
We deploy TSK-106-10 (Automated Compute-Hour & Specialized JV Legal Fee Allocation). Our system programmatically establishes dedicated B&P cost-accounting codes in your corporate ERP. VSI Module 5 (Payroll Sync) automatically captures and isolates every direct design, legal, and advanced simulation compute hour, automatically mapping them to the project-level B&P job ledger. This creates the mandatory, DCAA-compliant CAS 420 audit trail, protects your general overhead pool from dilution, and secures your negotiated cost-plus multipliers with mathematical certainty.
Mixing massive pre-proposal compute costs into general pools guarantees DCAA multiplier dilution. VALZOX deploys strict B&P isolation algorithms to structurally enforce FAR Part 31 compliance.
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