Rate structure redesign turned losses into profit
~10% net profit
- Setting
- CFO of a small business federal contractor.
- Problem
- Three straight years of net losses. The indirect rate structure didn't reflect how the work was actually delivered, so bids were priced on the wrong costs.
- What I did
- Redesigned the indirect pools and bases, reset the rates, and followed through by carrying the new rates into pricing on every bid and option.
- Result
- The company moved from three years of losses to about 10% net profit.
Priced a $169M firm-fixed-price win
$169M FFP
- Setting
- Finance leadership at a large defense contractor, bidding the U.S. Customs and Border Protection (CBP) Tethered Aerostat Radar System (TARS) program.
- Problem
- A large, multi-year firm-fixed-price bid, where the contractor carries every cost overrun, against a demanding price target.
- What I did
- Built the cost volume from labor mapping through to fully burdened rates, and tested price against margin and risk scenarios before final submission.
- Result
- Won the $169M award. Across my career I have priced more than $400M in winning contracts, options and extensions.
Phased out loss-making contracts
~8 contracts phased out
- Setting
- A federal services contractor whose revenue was growing faster than its margin.
- Problem
- Without profit by contract, weak work was being renewed alongside strong work.
- What I did
- Built program P&Ls with fully loaded cost, ranked every contract by margin, and set out the options for each: reprice, restructure or phase out.
- Result
- About eight small, loss-making contracts were phased out, and bid effort went to work that paid.
Planning rollout on Costpoint
TM1 on Costpoint
- Setting
- Director of Finance at a large defense and security contractor.
- Problem
- Planning and forecasting needed one consistent model on top of the Costpoint general ledger.
- What I did
- Led the finance side of an IBM TM1 planning rollout integrated with Costpoint.
- Result
- A shared planning model used for program and corporate forecasts.