iTRACS >> Products & Solutions >> Infrastructure Audits
Infrastructure Audits
Role: Chief Financial Officer
Environment: Remote Manufacturing Sites for a Global Defense Contractor with Extensive Networking and Communication Set-Ups at most of the Remote Manufacturing Sites
Challenge: Asset Management / Tracking / Cost Containment / Revenue Generation / Compliance / Reporting.
Solution: On-Line Asset Tracking & Connectivity Management Tool.
Benefit: Revenue Generation/ Appropriate Data Collection for Fixed Price Contracts
As one of the world's largest defense contractors, virtually all of its business is conducted on a fixed price contract basis with the US Department of Defense. Typically the terms of the contract with the Defense Department are written to allow a specific, mark-up over the "fully loaded" costs associated with that project. The fully-loaded costs include the expense associated with any and all assets utilized for a particular Defense Department project. It is critical, therefore, that they appropriately capture all costs associated with a Defense contract job.
The federal government regularly requests a detailed audit of the expense included in the determination of the “fixed costs” for each project.
It was the result of a detailed federal government audit that lead the firm to the utilization of the iTRACS Solution, to accurately and efficiently track their assets around the globe.
As a result of this audit, a number of voice, data and other IT assets that we were included in the Fixed Cost for determining the ultimate charge to the federal government:
- Were no longer being utilized on this project
- Had never actually been deployed for this project
- Had been originally deployed, but subsequently replaced with newer IT assets for this project
The firm negotiated and developed an agreement with the federal government which included the implementation of an on-line, real time asset tracking system for all IT assets globally. iTRACS provided a superior solution.
The iTRACS Solution was deployed globally and has been an overwhelming success in addressing asset tracking and cost information needs for their projects ongoing. Implementation of the iTRACS Solution has saved the firm hundreds of thousands of dollars on government audits, staff time and the proper capturing of asset costs. It also allowed them to generate the appropriate revenue streams for these projects.
The iTRACS Solution has allowed the firm to accurately capture the expense of all IT assets associated with a particular project. They are now able to properly factor this asset expense into fixed cost calculations. The iTRACS Solution has been recommended not only to other Defense Contractors, but to any entity that operates on a fixed cost contract basis.
iTRACS Product: iTRACS Physical Layer Manager
