VA Contract Compliance - Digital Employee Briefing

Executive Summary

You are 77 days from contract completion with 215 hours remaining. The project is 6 weeks behind schedule on Deliverable 4 while maintaining budget discipline. However, three compliance risks require immediate action this week: indirect rate overrun, timecard coding errors, and acceptance backlog on final deliverable components.

6 weeks

Behind Schedule

91.7%

Budget Consumed

3

Risk Items

Critical Alerts

Indirect Rate Exceeds Approved Cap

Current indirect allocation is 18.4% of direct labor costs, exceeding the 18.0% contract maximum by 0.4%. At current burn rate, you will overrun the indirect cap by approximately $1,800 by contract end.

Action Required: Review and reallocate costs or submit contract modification request

Unallowable Labor Codes Pending Approval

Week of Oct 8-12: 6 hours coded to "General Admin" (unallowable under CPFF). Additionally, 8 hours coded to Task 2.1 (Design phase completed June 30) requires verification as possible miscoding.

Action Required: Correct timecards before submission or face audit finding

Schedule Delay Threatens Final Deliverable Acceptance

Deliverable 4 is 6 weeks behind schedule with 2 of 3 components still pending acceptance. Component 4b requires rework; Component 4c not yet submitted. Only 77 days remain for completion and VA acceptance sign-off.

Action Required: Accelerate Component 4c delivery and resolve Component 4b rework this week

Schedule Status

At Risk

Overall Progress 685 / 900 hours

Deliverable 1 (Analysis) Complete

Deliverable 2 (Design) Complete

Deliverable 3 (Prototype) Complete

Deliverable 4 (Implementation) 60% – 6 Weeks Late

Days to Contract End 77 days

Hours Remaining 215 hours

Budget Status

High Utilization

Total Funding Used $412,300 / $450,000

Remaining Budget $37,700

Current Weekly Burn $8,400

Weeks Until Ceiling 4.5 weeks

Indirect Rate (Actual) 18.4%

Indirect Rate (Approved) 18.0%

Overage Risk $1,800

Labor Allocation vs. Plan

Role	Used	Budget	% Used
Senior Consultant	210	225	93%
Mid-level Consultant	390	450	87%
Junior Consultant	85	225	38%

Junior hours significantly underutilized. Consider leveraging remaining Junior budget ($8,100 available) to reduce senior billing costs.

Quality & Acceptance Status

Deliverable 4a (Component) Accepted

Deliverable 4b (Component) Rework Pending

Deliverable 4c (Component) Not Submitted

QA Defects Found 1 active (data validation)

Rework Hours Used 12 of 280 budgeted

Acceptance Backlog 2 components

Pending Invoices Under Review

Invoice #45: $9,200 – Allowability Question

8 hours coded to "pre-implementation consulting" at Senior rate ($150/hr = $1,200). Requires verification that this is allowable under contract deliverables. Check contract clause alignment before submission.

Action: Verify with contract or reclassify to approved task code

Invoice #46: $6,800 – Clean Labor Costs

All labor hours properly coded and verified. Ready for submission upon approval.

Status: Approved for submission

Timecard Corrections Required (Week of Oct 8-12)

Hours	Current Code	Issue	Recommended Action
8 hours	Task 2.1 (Design)	Phase completed June 30; post-project coding	Recode to Task 4.2 (Implementation) or Task 4.3 (Quality)
6 hours	General Admin	Unallowable cost category	Recode to specific task or mark as non-billable

Total hours requiring correction: 14 hours. These must be resolved before timecard approval. Unallowable costs charged to federal contract trigger audit findings.

This Week's Priority Actions

Correct and resubmit timecards (Oct 8-12 week)
Recode 8 hours from Task 2.1 to Task 4.2 or 4.3. Reclassify or remove 6 hours in "General Admin." Must complete before end of business Tuesday.
High Priority
Verify Invoice #45 allowability and submit or revise
Confirm "pre-implementation consulting" hours are contractually allowable. If not, reclassify the 8 hours before invoice submission. Decision needed by Wednesday.
High Priority
Deliver Component 4c by Friday, Oct 20
This is the final pending component. Delivery by Friday will meet internal schedule and allow VA acceptance window before contract end (Dec 31).
High Priority
Resolve Component 4b rework (data validation issue)
Schedule QA review and developer coordination this week. Rework must be complete by Oct 22 to meet final acceptance timeline.
High Priority
Analyze indirect rate overrun; plan corrective action
Review Oct-Dec projections. Current 18.4% rate will exceed contract cap by ~$1,800. Options: (1) shift hours to Junior roles, (2) submit modification request, (3) absorb overrun as cost-share.
Medium Priority
Confirm VA acceptance criteria for final components
Schedule call with VA PM to confirm acceptance criteria for Components 4b and 4c. Ensure no ambiguity before final submission.
Medium Priority

Runway to Completion Forecast

Schedule Risk: HIGH
Deliverable 4 is 6 weeks behind. With only 77 days remaining and 2 of 3 components still pending, the timeline is critically constrained. Component delivery must be accelerated immediately.

Budget Risk: MEDIUM
Current burn rate ($8,400/week) will consume remaining $37,700 in approximately 4.5 weeks. You have sufficient budget to complete, but with minimal margin for overruns or rework.

Compliance Risk: CRITICAL
Indirect rate overrun, unallowable labor codes, and pending invoice allowability questions create audit exposure. Immediate correction required. Failure to resolve before year-end invites audit findings.

Completion Outlook:
Contract can be completed on budget IF: (1) schedule delays are recovered in Oct-Nov, (2) Component 4b rework is minimal, (3) no additional scope creep occurs. Final delivery window is Nov 30 to allow Dec buffer for VA acceptance before Dec 31 contract end.

VA Contract Compliance Briefing