🇩🇪Germany

Fehlentscheidungen bei Angeboten durch unzureichende CAS-Kostentransparenz

3 verified sources

Definition

CAS requires that cost estimates for proposals reflect consistent cost allocation practices. German contractors using outdated or incomplete cost data (e.g., estimated vs. actual labor burden rates, unallocated facility costs) submit bids that are either systematically too low (margin loss) or too high (no-bid). Post-award, DCAA audits may disallow certain cost allocations, reducing effective profit margins by 3–15%.

Key Findings

  • Financial Impact: Bid pricing errors: 2–8% margin loss on full contract value; for €20M contract: €400,000–€1,600,000 margin loss. Post-award disallowances: 3–7% of total contract value in questioned costs requiring refund or credit against future invoices.
  • Frequency: Per proposal cycle (quarterly to annual); recurring on all large US defense bids and contract modifications
  • Root Cause: Weak integration between German cost accounting system and proposal tools (e.g., Deltek Vantagepoint), outdated labor burden rates not refreshed annually, lack of real-time cost visibility for estimating purposes, insufficient training on CAS cost allocation rules for proposal teams, change order pricing disputes due to cost transparency gaps

Why This Matters

This pain point represents a significant opportunity for B2B solutions targeting Defense and Space Manufacturing.

Affected Stakeholders

Proposal Manager / Estimator, Contracts Manager, Cost Analyst, Program Manager, Finance / Pricing Lead

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Financial Impact

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

CAS-Compliance-Verstöße und Kontraktstrafen

€50,000–€150,000 per CAS audit engagement; €100,000–€500,000 per contract price adjustment (typical 2–8% of contract value); 200–400 manual hours annually per contract for compliance documentation.

Übermäßige Compliance- und Audit-Kosten bei U.S.-Verträgen

€300,000–€800,000 annually: €150,000–€300,000 external audit costs; €100,000–€200,000 internal labor (20 hrs/month × 12 months × €75/hr blended rate); €50,000–€300,000 delayed contract payment interest/working capital cost.

Unzureichende Kostenvisibilität in U.S.-Vertragsmanagement

€500,000–€3,000,000+ annually: €100,000–€500,000 external consulting fees per major contract; 5–15% typical margin erosion on CAS-covered contracts (€250,000–€2,500,000 per contract in lost profit); 100–300 hours annually in rework due to bid model errors.

CAS-Nichtkonformität und Vertragsstrafen bei Rüstungsaufträgen

Contract termination risk (loss of 100% revenue stream); estimated audit remediation: €50,000–€200,000+ per contract; penalty fines under FAR 48 CFR Part 31; potential suspension from future US contracts

Indirekte Kostenallokationsfehler und Überverrechnung bei Rüstungsaufträgen

2–5% of contract value in allocation errors; for €10M contract: €200,000–€500,000 exposure. DCAA audit disallowances typically 3–7% of questioned costs; FAR allows recovery plus interest (typically 6% annually).

Verzögerte Vertragsabrechnung durch CAS Disclosure und Audit Compliance

Estimated 60–180 day payment delay on initial contract value; for €5M contract at 5% cost of capital: €41,667–€125,000 working capital cost; accounts receivable aging increases by 45–90 days

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