Difference between revisions of "Booking Recognition - Inter/Intra-Company Transactions - Policy"
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| − | Process Owner | + | ==Process Owner== |
| − | + | ||
| − | + | Senior Executive of Corporate Business Development | |
| − | + | ||
| − | + | ==Purpose== | |
| − | + | This policy is established to recognize and consistently record booking metrics for Business Unit’s (BU’s) when Business Development (BD) efforts result in Intra-Company bookings. This policy encourages cross BU collaboration and removes potential barriers to intra-company teaming by recognizing and consistently recording booking metrics for Responsible BU’s and respective performing BU’s when collaborative BD efforts result in awarded bookings. | |
| − | + | ||
| − | + | ==Definitions== | |
| − | + | '''Booking''' - A contractual instrument* between a buyer and seller giving either party the ability at some future date to determine the estimated revenue derived from the contractual instrument. Bookings for most contracts are determined by the “Contract Value”. GovC reports booking values as part of our quarterly reports to investors/shareholders and in our Securities and Exchange Filings (SEC). Bookings are one financial metric to assess company growth and are a calculated factor in our incentive compensation system. | |
| − | + | *The terms '''“contract” “task order” “delivery order” “extension” “ECP*” or “Add-on”''' may be used individually or collectively to identify contractual instruments that when issued authorize the company to perform services or sell products and record bookings. | |
| − | + | '''ECP''' – Engineering Change Proposal | |
| + | '''Collaborative Bookings''' – Awarded bookings resulting from the BD efforts of more than one Business Unit. | ||
| + | '''Single Award Contracts or Awarded Task Orders''' – Contracts awarded at some face value solely to GovC. Task orders awarded to GovC against a contract vehicle are included in this category. Award of the contract vehicle itself IS NOT included in this category. | ||
| − | + | '''Contract Vehicles''' – Multiple award contract instruments(ID/IQ contracts, BPAs, GWACs) are contractual instruments under which authorization(s) to perform services or provide products may be issued but which stand alone do not provide the authorization to perform services and record sales. The exact time or quantity when services or products may be required is unknown. | |
| − | + | '''IQID''' - Indefinite Quantity, Indefinite Delivery | |
| − | BPA – Blanket Purchase Agreement | + | '''GWAC''' – Government Wide Acquisition Contract |
| + | |||
| + | '''BPA''' – Blanket Purchase Agreement | ||
Fully Executed Contract Instrument – a contractual agreement that both parties, the buyer and the seller, have signed. | Fully Executed Contract Instrument – a contractual agreement that both parties, the buyer and the seller, have signed. | ||
| − | + | ==Policy== | |
| − | Policy | + | |
| − | + | It is GovC policy to accurately and timely record all company bookings and to recognize and equitably assign recorded bookings to all BU’s whose singular or collective efforts resulted in booking awards. | |
| − | For the purpose of calculating incentive compensation metrics, | + | For the purpose of calculating incentive compensation metrics, GovC records (assigns) total booking values to each BU participating in collaborative booking awards. |
| + | |||
| + | ==Reportable Bookings== | ||
| − | |||
In compliance with SEC regulations, the tabulation of reportable bookings is summarized as follows: | In compliance with SEC regulations, the tabulation of reportable bookings is summarized as follows: | ||
| − | Single Award Contracts and Awarded Task Orders - the booking value is the valued stated in the fully executed | + | Single Award Contracts and Awarded Task Orders - the booking value is the valued stated in the fully executed GovC contract award instrument. |
For Contract Vehicle awards – , The reportable booking value can not be accurately determined; therefore, for the purpose of recognizing BU incentive booking achievement, bookings are recorded based on the estimated value of the cumulative revenue to be realized under the IDIQ, GWAC, or BPA primary contract vehicle for its contract term as follows: | For Contract Vehicle awards – , The reportable booking value can not be accurately determined; therefore, for the purpose of recognizing BU incentive booking achievement, bookings are recorded based on the estimated value of the cumulative revenue to be realized under the IDIQ, GWAC, or BPA primary contract vehicle for its contract term as follows: | ||
| − | + | ||
| − | 1. Determine the Total Value of the Program award or contract ceiling. | + | ===GovC is Prime Contractor=== |
| − | 2. Determine the number of awards made. | + | |
| − | 3. Determine the potential value to | + | : 1. Determine the Total Value of the Program award or contract ceiling. |
| − | 4. Determine whether the award is from a New or Existing | + | |
| − | 5. Multiply the potential value to | + | : 2. Determine the number of awards made. |
| − | + | ||
| − | The booking value (as computed above) is reduced by a factor representing expected | + | : 3. Determine the potential value to GovC by dividing the Total Value by number of awards made. |
| − | + | ||
| + | : 4. Determine whether the award is from a New or Existing GovC customer. | ||
| + | |||
| + | : 5. Multiply the potential value to GovC by 20% for a new customer or 30% for an existing customer. The results are the amount of bookings value which should be credited under the applicable incentive plan.* | ||
| + | |||
| + | ===GovC is Subcontractor=== | ||
| + | |||
| + | The booking value (as computed above) is reduced by a factor representing expected GovC workshare. | ||
| − | Booking Recognition | + | ==Booking Recognition== |
| − | + | ||
| − | + | It is GovC policy is to record actual bookings for all Single Award Contracts and Task Orders based upon the stated contract value at the time a fully executed contract instrument is issued.by the Buyer. Note: to avoid duplicate records of reportable bookings; GovC limits the booking to a single entry in our Lead Tracking System (GovWin);therefore, for all collaborative bookings, the GovWin record will be entered for the Lead BU with offline entries for all collaborating BU’s. | |
| − | + | ==Responsibilities== | |
| + | |||
| + | Corporate BD is responsible for making the necessary reporting entries to represent bookings resulting from collaborative efforts in the reportable metrics for all participanting BU’s and for ensuring total bookings are reported accurately without duplication at the enterprise level. | ||
To confirm the accuracy of recorded bookings,, Corporate BD is responsible for verifying all bookings over $10M by confirming the award documentation with the applicable BU. | To confirm the accuracy of recorded bookings,, Corporate BD is responsible for verifying all bookings over $10M by confirming the award documentation with the applicable BU. | ||
| + | |||
It is the responsibility of the BU BD Lead to ensure that booking values and other related key metrics to include dates of award are accurate. . | It is the responsibility of the BU BD Lead to ensure that booking values and other related key metrics to include dates of award are accurate. . | ||
| − | |||
| − | |||
| − | |||
| − | |||
| − | |||
| − | |||
| − | |||
| − | |||
| − | + | ==Procedures== | |
| − | [[Category: Policies and Procedures | + | GovC reports bookings quarterly to our investors and shareholders. Data is collected by Corporate BD shortly after the close of each business month and reported on the 7th business day after the close. Bookings reported over any given reporting period are collected using data from GovWin entries marked as “Won” and any additional projects opened in GovC’s Financial system that are not accounted for as bookings in the GovWin system. Therefore, it is imperative that Business Units update GovWin entries as soon as possible after award notification with the total contract value and updated status. Entries where the data corrections are made after the close of the month should be specifically identified and reported to the Corporate Business Development Financial Director. |
| + | |||
| + | ===Recording Bookings When an Opportunity is Won=== | ||
| + | |||
| + | : 1. Value is determined as reflected in the Policy section above. | ||
| + | |||
| + | : 2. In order to avoid double counting the opportunity, only the bidding Business Unit may show this opportunity in the corporate GovWin pipeline. | ||
| + | |||
| + | : 3. The bidding Business Unit must advise other participating Business Units as to the final dollar value of the negotiated contract for incentive booking credit purposes. | ||
| + | |||
| + | |||
| + | |||
| + | [[Category: Policies and Procedures]] | ||
Latest revision as of 17:24, 4 October 2022
Contents |
Process Owner
Senior Executive of Corporate Business Development
Purpose
This policy is established to recognize and consistently record booking metrics for Business Unit’s (BU’s) when Business Development (BD) efforts result in Intra-Company bookings. This policy encourages cross BU collaboration and removes potential barriers to intra-company teaming by recognizing and consistently recording booking metrics for Responsible BU’s and respective performing BU’s when collaborative BD efforts result in awarded bookings.
Definitions
Booking - A contractual instrument* between a buyer and seller giving either party the ability at some future date to determine the estimated revenue derived from the contractual instrument. Bookings for most contracts are determined by the “Contract Value”. GovC reports booking values as part of our quarterly reports to investors/shareholders and in our Securities and Exchange Filings (SEC). Bookings are one financial metric to assess company growth and are a calculated factor in our incentive compensation system.
- The terms “contract” “task order” “delivery order” “extension” “ECP*” or “Add-on” may be used individually or collectively to identify contractual instruments that when issued authorize the company to perform services or sell products and record bookings.
ECP – Engineering Change Proposal
Collaborative Bookings – Awarded bookings resulting from the BD efforts of more than one Business Unit.
Single Award Contracts or Awarded Task Orders – Contracts awarded at some face value solely to GovC. Task orders awarded to GovC against a contract vehicle are included in this category. Award of the contract vehicle itself IS NOT included in this category.
Contract Vehicles – Multiple award contract instruments(ID/IQ contracts, BPAs, GWACs) are contractual instruments under which authorization(s) to perform services or provide products may be issued but which stand alone do not provide the authorization to perform services and record sales. The exact time or quantity when services or products may be required is unknown.
IQID - Indefinite Quantity, Indefinite Delivery
GWAC – Government Wide Acquisition Contract
BPA – Blanket Purchase Agreement
Fully Executed Contract Instrument – a contractual agreement that both parties, the buyer and the seller, have signed.
Policy
It is GovC policy to accurately and timely record all company bookings and to recognize and equitably assign recorded bookings to all BU’s whose singular or collective efforts resulted in booking awards.
For the purpose of calculating incentive compensation metrics, GovC records (assigns) total booking values to each BU participating in collaborative booking awards.
Reportable Bookings
In compliance with SEC regulations, the tabulation of reportable bookings is summarized as follows:
Single Award Contracts and Awarded Task Orders - the booking value is the valued stated in the fully executed GovC contract award instrument.
For Contract Vehicle awards – , The reportable booking value can not be accurately determined; therefore, for the purpose of recognizing BU incentive booking achievement, bookings are recorded based on the estimated value of the cumulative revenue to be realized under the IDIQ, GWAC, or BPA primary contract vehicle for its contract term as follows:
GovC is Prime Contractor
- 1. Determine the Total Value of the Program award or contract ceiling.
- 2. Determine the number of awards made.
- 3. Determine the potential value to GovC by dividing the Total Value by number of awards made.
- 4. Determine whether the award is from a New or Existing GovC customer.
- 5. Multiply the potential value to GovC by 20% for a new customer or 30% for an existing customer. The results are the amount of bookings value which should be credited under the applicable incentive plan.*
GovC is Subcontractor
The booking value (as computed above) is reduced by a factor representing expected GovC workshare.
Booking Recognition
It is GovC policy is to record actual bookings for all Single Award Contracts and Task Orders based upon the stated contract value at the time a fully executed contract instrument is issued.by the Buyer. Note: to avoid duplicate records of reportable bookings; GovC limits the booking to a single entry in our Lead Tracking System (GovWin);therefore, for all collaborative bookings, the GovWin record will be entered for the Lead BU with offline entries for all collaborating BU’s.
Responsibilities
Corporate BD is responsible for making the necessary reporting entries to represent bookings resulting from collaborative efforts in the reportable metrics for all participanting BU’s and for ensuring total bookings are reported accurately without duplication at the enterprise level.
To confirm the accuracy of recorded bookings,, Corporate BD is responsible for verifying all bookings over $10M by confirming the award documentation with the applicable BU.
It is the responsibility of the BU BD Lead to ensure that booking values and other related key metrics to include dates of award are accurate. .
Procedures
GovC reports bookings quarterly to our investors and shareholders. Data is collected by Corporate BD shortly after the close of each business month and reported on the 7th business day after the close. Bookings reported over any given reporting period are collected using data from GovWin entries marked as “Won” and any additional projects opened in GovC’s Financial system that are not accounted for as bookings in the GovWin system. Therefore, it is imperative that Business Units update GovWin entries as soon as possible after award notification with the total contract value and updated status. Entries where the data corrections are made after the close of the month should be specifically identified and reported to the Corporate Business Development Financial Director.
Recording Bookings When an Opportunity is Won
- 1. Value is determined as reflected in the Policy section above.
- 2. In order to avoid double counting the opportunity, only the bidding Business Unit may show this opportunity in the corporate GovWin pipeline.
- 3. The bidding Business Unit must advise other participating Business Units as to the final dollar value of the negotiated contract for incentive booking credit purposes.
