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Management

Enterprise Resource Planning(ERP)

Integrated software systems that manage business processes such as finance, procurement, HR, and project management.

Overview

Enterprise Resource Planning (ERP) systems consolidate core business functions into a single platform — accounting, supply chain, human resources, procurement, and project management. Many government contractors use ERPs to meet complex compliance and reporting demands.

Why It Matters in GovCon

Federal contractors often need ERP capabilities to comply with FAR cost principles, track labor by contract, support DCAA audits, and produce required financial reports. ERP selection and implementation are significant for growth-stage contractors.

Key Details

  • Compliance: ERP systems must support FAR Part 31 cost accounting, timekeeping, and indirect rate structures.
  • DCAA Audits: Defense contractors require systems that satisfy Defense Contract Audit Agency requirements.
  • Integration: ERP modules typically integrate with project management, CRM, and proposal tools.
  • Cost: Implementation ranges from mid-market solutions to enterprise platforms (e.g., SAP, Oracle).

Related Terms

  • Indirect Cost
  • DCAA
  • Cost Accounting Standards (CAS)
  • General and Administrative Expenses (G&A)

More Management Terms

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