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A. Accounting

Government contractors account for cost in a very detailed manner, and in this section we dive into how cost affects EBITDA, margins, invoice cycles, and days sales outstanding. This section is important to reviewing how you allocate your cost by location, function, customer, or product/service, in addition to what your largest indirect cost is other than labor.

Days Sales Outstanding (DSO)

What is your approximate Days Sales Outstanding (DSO)?

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Disclaimer

CohnReznick & Unanet used information gathered from the government contracting industry survey participants referenced in the “Respondents” section of the 2020 GAUGE. The information provided to us has not been independently tested or verified. Thus, we have relied exclusively on the 2017-2020 GAUGE survey participants for the accuracy and completeness of the data. No survey can be guaranteed to be 100% accurate, and errors may occur. CohnReznick & Unanet do not guarantee the completeness or the accuracy of the data submitted by GAUGE survey participants and thus do not accept responsibility for your reliance on this Report or any of the information contained herein. The information contained in the 2020 GAUGE includes estimations, approximations, and assumptions and is not intended to be legal, accounting, or tax advice. Please consult a lawyer, accountant, or tax advisor before relying on any information contained in this Report. CohnReznick & Unanet disclaim any liability associated with your reliance on any information contained herein.

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Revenue

Respondents are broken up into revenue bands that represent distinct ranges that identify operational challenges and barriers that companies face as they grow. Keeping the revenue bands at these ranges achieves a higher density of responses and greater statistical confidence. The revenue bands are $0-10M, $10M+ - $25M, $25M+ - $50M, and >$50M. These bands are the life-blood of how we survey and report the findings in the GAUGE.

NAISC Codes

The North American Industry Classification System is used by the government contracting community to identify how the government bids, determines size, team, type of work, and how contractors are defined by their primary and secondary type of work they perform. NAICS codes are gathered for our report to use as a basis for slicing and dicing information by type of contractor.