🇩🇪Germany

Verzögerte Vertragsabrechnung durch CAS Disclosure und Audit Compliance

3 verified sources

Definition

CAS-covered contracts require submission and ACO approval of Disclosure Statements before payments are released. DCAA audits the DS to verify compliance with CAS and FAR Part 31, issuing formal audit reports. The ACO then issues an adequacy determination. Until this determination is documented, interim payments or final invoices may be held, creating significant cash flow drag for German contractors with limited US government payment infrastructure.

Key Findings

  • Financial Impact: 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
  • Frequency: Per new CAS-covered contract award; also triggered by contract modifications, acquisitions, or organizational restructurings requiring new Disclosure Statement submissions
  • Root Cause: Manual Disclosure Statement preparation (50–200 hours of accounting staff time), lack of pre-audit readiness, slow DCAA audit cycles (typically 30–60 days), ACO delays in issuing adequacy determination, insufficient coordination between German parent company accounting and US contract administration

Why This Matters

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

Affected Stakeholders

Account Receivable Manager, Government Contracts Manager, CFO / Treasurer, Billing & Invoice Manager

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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).

Fehlentscheidungen bei Angeboten durch unzureichende CAS-Kostentransparenz

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.

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