Government Compliance:

Solving the Biggest Contracting Challenges in the Aerospace & Defense Sector


One of the biggest and most consistent challenges for both leading and emerging Aerospace and Defense (A&D) organizations is their contractual obligation to comply with the ever-increasing regulations and restrictions associated with government contracts—from awards to administration to contractual performance.

For major acquisition programs, when materials and services are acquired through competitive and non-competitive means in the open market and exceed the Simplified Acquisition Threshold (SAT), organizations must adhere to stringent compliance and regulatory requirements set forth by the Defense Contract Management Agency (DCMA) and Federal Acquisition Regulations (FARs/DFARs) commonly applicable to FAR Part 15 contracts.

Compliance Requirements:

Contract Types, Defense Business System

Common aerospace and defense contracts include:

  • Fixed-Price Contracts
  • Cost Reimbursement Contracts (Cost Plus Fixed Fee, Cost Plus Incentive Fee)
  • Time & Material Contracts

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. 

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Dassian’s Approach:

Standardized Industry Solutions

For over 20 years, Dassian has been a leader in providing industry solutions for the Aerospace and Defense sector, helping organizations maximize the value of their SAP investment. Dassian’s solutions address the complexities and requirements of the six common business systems, offering a standardized, simplified and automated approach to business operations across the ERP platform.

As a member of the SAP PartnerEdge program, Dassian’s industry solution suite offers an integrated approach to meeting DCMA/DCAA regulatory compliance requirements. By filling whitespace gaps and mitigating risks associated with technical debt, Dassian provides a migration path for organizations looking to modernize their IT landscape as part of their digital business transformation initiative.

Key features and functionality of the Dassian solution suite include:

  • Contract Award
  • Contract Flow Down (FAR/DFAR & DPAS Ratings)
  • Automated Invoicing (Progress Payments)
  • Contract Performance Monitoring
  • Cash Application
  • Cost Reporting
  • Indirect Costs
  • Direct Labor

Industry Experts in the Aerospace and Defense Sector

Dassian serves over 40 active clients in the Aerospace & Defense sector, offering solutions and a team of industry experts to address both current and future business needs. By simplifying the end-user experience (UX/IU), Dassian enhances operational performance. Leveraging machine learning and Dassian Intelligence, which analyzes actuals and historical data, Dassian provides powerful real-time data analytics to drive future business decisions and meet the growing demand for AI adoption.

For more information, contact Dassian to learn how you can meet compliance requirements with current or future adoption of SAP.

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