There’s no manual for being a successful and competitive government contractor. But, there are three important principles to remember; we call them “The 3 Cs.”
Compliance. Cost Savings. Competitiveness.
What are the 3 Cs? How do they help you win contracts? How do you master them?
Read on to learn more!
SCA. DBA. ACA. There are a lot of intimidating acronyms floating around out there.
What’s worse? Failure to comply with all those rules, requirements, and regulations can result in withheld contractor funds, liability for the contractor, termination of crucial contracts, and (worst of all!) potentially being debarred from future government contracts. It is even possible for a contractor to be debarred for years!
Compliance can be tricky once you start to factor in health and welfare requirements, fringe obligations, responsibility over sub-contractors, and other concerns.
Boon’s in-house compliance department is here to provide support for any compliance issues that may arise, handling each situation with the utmost discretion and efficiency. Our team is here, adjusting to each new executive order and change in legislation and offering full support in the constantly evolving field of compliance and government contract standards.
There are two options for hour government contractors can fulfill the fringe obligation:
- Paying those fringe dollars to their employees in cash.
- Putting those fringe dollars towards bona fide benefits (health and welfare benefits, in particular).
We recommend going with the benefits. Why?
Investing the fringe obligation into health and welfare benefits has been reported to result in higher workforce productivity, less absenteeism, and significantly reducing healthcare expenditure overall.
Still need convincing? Did you know that employers spend two to three dollars on medical related productivity costs for every dollar they spend on pharmacy and healthcare costs? Did you also know that, in 2017, healthcare costs increased in 79 percent of organizations with an average yearly increase of 11 percent?
Employers that don’t offer solid healthcare options are at a huge disadvantage and the costs are just as large.
When it comes to providing health and welfare benefits to employees, government contractors have a choice. Maximizing those fringe dollars by developing a benefits plan that meets the unique needs of an employer keeps contractors compliant and allows ample opportunity to save money. The Boon Group can help contractors by offering bona fide benefits, which creates a tax cost savings by reducing additional expenses in the form of payroll burden.
In the arena of government contracting, projects are won or lost on mere dollars and cents. Being able to offer a low bid and quality service through your healthy, productive workforce makes you top competitor material.
Compliance and cost savings are the factors that add up to more competitive bids. You can have the full 3 Cs and start winning even more contracts.
At Boon, our mission is to offer competitive rates and comprehensive care, with affordability and flexibility in mind. A little goes a long way and Boon recognizes that lowering costs on a contract today means bigger savings tomorrow.
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