Government Contracting Success Story

Client Summary

A leading government contracting organization that provides services locally and internationally. 

  • Industry: Government Contracting
    • Defense
    • Citizen Services
    • Transport
  • Estimated Revenue: $4B
  • Location(s): North America | Headquartered in the United States

PROJECT OVERVIEW

  • Data Strategy and Power BI Proof of Concept
  • Oracle EPM Cloud Implementation
    • Direct Project and Indirect Expense Planning
    • Indirect Rates Modeling
  • Azure SQL Server Data Warehouse
  • Microsoft Power BI Releases

Engagement Details

OPPORTUNITY STATEMENT / ENGAGEMENT GOALS

Our team had two primary goals for our projects:

  • To enable a modernized financial planning, forecasting, and indirect rate modeling application to replace their legacy SAP BPC tool. The cloud application needed to be flexible and highly integrated with Costpoint and their opportunity tracking system for nimble forecasting processes.
  • To create a one-stop portal for Program Managers, Business Finance, and Executive leaders for program reporting and analytics.

PROJECT TIMELINE

  • Data Strategy and Power BI Proof of Concept (2 Months)
  • Oracle EPM Cloud
    • Direct Project and Indirect Expense Planning (6 Months)
    • Indirect Rates Modeling (5 Months)
    • Balance Sheet and Cash Flow Planning (3 months)
  • Azure SQL Server Data Warehouse (7 Months)
  • Microsoft Power BI (4 Months)
  • Continued Power BI Releases (Ongoing)

Why Oracle Planning and Power BI?

Both Oracle Planning and Power BI are the best of the breed in the industry. For this government contracting organization, they are the perfect pairing to advance both the financial planning and forecasting processes, and fold the outputs from that tool into Power BI as the complete Enterprise level reporting suite.

Who Uses These Reports?

Business Executives

Business Finance

Business Group Leads

Program Managers

Program Analysts

Finance Analysts

Our Project Approach

Project 1: Oracle Planning

  • Helped the organization build a planning model that gave them bigger insight into what drives actual to forecast to plan variances across their business units using the following planning models:
    • Ability to plan and forecast at varying levels of the project strings from Costpoint to accommodate different reporting requirements for different types of contracts (IDIQ, etc.). This includes seamless integrations with Costpoint and a lights-out automation process.
    • Flexible labor planning with varying levels of detail (by employee, by FTE and by total labor input) to accommodate flexibility for different types of contracts
    • Revenue calculations by contract type based on Costpoint calculations
    • Capture and report on labor and ODCs by burden type to calculate a fully burdened P&L
    • Indirect planning by org/indirect project to facilitate pool cost calculations
    • Indirect rate modeling for forecasting and forward pricing rate purposes
      • Automation of forward pricing rate schedules and reporting packages
      • Indirect rate cost impact and profitability analysis
      • Ability to review cost and base variances at the cost account mix (DL vs. M&H vs. ODCs) and project level of detail for rate trend analysis purposes
      • What-if analysis to account for pool consolidation and base changes (TCI vs. Value-Add)
    • Plan for opportunities and review variances across factored and unfactored views driven by p-win and p-go inputs
    • Project attribute reporting for: Contract Type, Major Project Grouping, Contract Status (Existing, Re-compete, New Business) etc.
    • Balance Sheet and Cash Flow forecasting, planning and analysis
  • Integration with Power BI for a seamless reporting platform for the organization

Project 2: Program Reporting Power BI Portal

  • Data Warehouse
    • Helped the business turn their existing MS Azure SQL Server environment into a true Data Warehouse to support their business applications and enterprise program reporting requirements
    • Created automated direct integrations from Costpoint to their new Oracle Planning Cloud application to:
      • Give users up-to-date revenue, labor, other direct costs, burden and indirect expense detail
      • Enable automated updates for project/contract details such as funding, POP
      • Automate updates of project work breakdown structures, account, org, and employee roster details
    • Design a high-performing data pipeline to stage millions of rows from Costpoint source tables into the Warehouse and transform into business reporting models for Power BI
    • The Warehouse includes details at the most granular levels for projects, employees, labor timesheets (cost and hours), billings, collections, vendors, customers, and labor categories

Project 3: Power BI Portal

  • Partnered with the business to build out a Program Manager Insights Portal, to serve as a one-stop shop for operational project/program analysis, along with Business Group and Executive level reviews.
  • The business had created a first wave of the portal prior to us coming on board, we helped them fill the portal with robust reporting to truly be an aide to their Program Managers.
  • Helped position the portal to replace legacy Cognos style reporting, and modernize the program management and review experience for consumers.

Project 4: Power BI Dashboards and Detailed Reporting

  • Integrated the new Oracle Planning Cloud application to create Program Review dashboards that encompass the following:
    • Revenue, direct cost, burden and trading profit analysis
      • Trend Analysis: YoY, MoM, Year to Date, Inception to Date
      • Act to plan to forecast comparisons
    • Existing vs new business
    • Contract type and performance metrics
  • Integrated Costpoint transaction-level details to allow program managers to view both aggregate and base level details for their projects. Some of the types of reports created were:
    • Project summaries at program and task level
    • Project revenue detail
    • Project general ledger transaction details
    • Labor and timesheet detail
  • In summary, the new dashboards provide easy access for business stakeholders to view top-line program revenue, cost and profit metrics, while at the same time drilling down to details such as the number of hours an employee charged to a project on their weekly timesheet.
    • Other key things to note:
      • Allows program managers to view open commitments
      • Vendor spend analysis
      • Better tracks program funding, backlog, and open PO balances
      • Rolls employee hours up by project, org, pay type, account type (direct vs leave)

SAMPLE DASHBOARDS

Contract Type and Performance Metrics

 

Project Summaries at Program and Task Level

 

Project Revenue Detail

Breaking Down the Results

  • There was a reduction of manual effort to complete financial forecasting and planning activities
  • Gained ability to perform what-if and scenario modeling
    • Indirect rate modeling as explained above:
      • Automation of forward pricing rate schedules and reporting packages
      • Indirect rate cost impact and profitability analysis
      • Ability to review cost and base variances at the cost account mix (DL vs. M&H vs. ODCs) and project level of detail for rate trend analysis purposes
      • What-if analysis to account for pool consolidation and base changes (TCI vs. Value-Add)
  • Standardized planning processes, lights-out automation processes, centralized solution, decreased reliance on excel and error-prone processes, increased reporting capabilities across projects and related attributes
  • Automated reporting packages
  • Gained ability to generate forward-looking forecasts out to 6 years for long-running programs/contracts
  • Increased integration and automation of financial processes and with key operational systems
  • Easier training platform and learning curve for new program managers and finance analysts vs learning the prior legacy tools
  • Shifted financial and program reviews from manually generated PPT decks to utilizing automated and dynamic dashboards
  • Applied planning and reporting standardization across their 8 business units

Drive Organizational Transformation

Remain agile and ahead of the curve to stay competitive and guarantee compliance within an ever-changing regulatory environment.

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The SC&H Group Team