RSMUS.comIn the ever-evolving regulatory landscape of government contracting, achieving compliance and operational efficiency is paramount. RSM US LLP, a leading provider of Microsoft D365 Finance and Supply Chain (D365 F&SC) solutions, stands out as a trusted partner for government contractors. With a CMMC-accredited Secure Enclave and accolades such as Microsoft’s Defense and Intel Partner of the Year, AOS-G Partner, Azure Expert CSP, and C3PAO, RSM is uniquely positioned to help clients navigate the complexities of government contracting.
Key Advantages of RSM’s GovCon Solutions
RSM’s Microsoft D365 F&SC solutions empower government contractors with the tools necessary to thrive in a highly regulated environment. Key benefits include:
- Integrated Compliance & Security – RSM’s multidisciplinary team, including specialists in ERP, cybersecurity, export controls and federal procurement, ensures seamless adherence to DCAA, FAR, CAS, ITAR and CMMC 2.0. By collaborating closely with clients, we align compliance strategies with business needs, protecting sensitive data while maintaining audit readiness and contract eligibility.
- Long-Term Regulatory Preparedness – Looking ahead is essential for government contractors. RSM helps clients develop a long-term strategy that prepares them for future regulatory changes such as CMMC 2.0 while supporting business scalability. By considering future growth and compliance needs, our solutions remain effective and relevant.
- Flexible & Secure Cloud Solutions – RSM provides adaptable solutions that balance compliance with operational flexibility, meeting regulatory requirements while allowing businesses to maintain efficiency. Our secure enclave enhances data security and regulatory compliance. The secure enclave ensures that sensitive data is protected, providing a high-compliance environment for handling ITAR and CUI data.
- Seamless Implementation & Professional Guidance – RSM ensures a smooth and efficient implementation process once the right strategy and architecture are in place. Our team provides comprehensive guidance throughout the implementation, ensuring that all aspects of the solution are seamlessly integrated into the client’s existing operations. We focus on delivering a tailored approach that meets the unique needs of each client, enabling them to achieve compliance and operational excellence without disruption
Understanding Client Needs and Compliance Requirements
Understanding client needs is at the core of RSM’s approach. Every government contractor has unique requirements, and compliance with regulations is crucial. Our comprehensive solutions are tailored to each client’s business model, ensuring that both compliance and operational objectives are met. Additionally, our RSM GovCon accelerator for Finance & Supply Chain (F&SC) enables Government Contractors to adhere to the regulations stated above, improving efficiency while reducing the cost of regulatory compliance.
Clients often choose one of the following options when structuring their cloud strategy for compliance:
1. Commercial Cloud – Government contractors with active contracts and pursuits that do not involve CUI or ITAR/EAR data in their ERP may find it beneficial to remain within the Microsoft Commercial Cloud. This approach can help companies maintain basic compliance and avoid the costs associated with migration. Additionally, companies can collaborate with their representatives to prevent flow-down clauses in future contracts. However, companies should be aware that this strategy might limit their ability to pursue contracts with specific requirements in the future.
Example: Strategic Commercial Cloud Utilization – A SaaS company that primarily operated in the commercial sector needed to meet DCAA and FAR compliance requirements. During an assessment, it was determined that one division manages contracts involving Controlled Unclassified Information (CUI). Due to the associated costs and complexity of the transition and the fact that this division’s federal business only contributes a small percentage to the overall revenue, this client decided against transitioning the entire corporation to a GCC cloud or against implementing a secure enclave for this division. Instead, measures were implemented to mask CUI data, ensuring that no sensitive information would transfer from the secure enclave into the commercial cloud where D365 F&SC resides. By collaborating with RSM’s cybersecurity team, this client ensured that this approach remained compliant with government regulations and standards. During the implementation. RSM helped this client to implement financial controls and reporting structures that satisfied government auditing standards.
2. Segmented Compliance – A hybrid approach that moves only GovCon operations to a compliant cloud while keeping commercial operations in the Commercial Cloud. This approach requires companies to understand the flow of their CUI data and ensure that all applicable applications reside in the secure enclave. Maintenance can certainly increase with this approach but is often chosen if a company handles commercial and government contracts that contain CUI data in ERP.
Example: Balancing Growth and Compliance with Segmented Cloud – A growing government contractor faced challenges as their federal revenue increased, requiring them to comply with CMMC 2.0 and other government regulations. RSM helped them implement a segmented compliance strategy by creating a secure GCC enclave for their government-related operations while allowing their commercial teams to remain in the Commercial Cloud. This approach ensured they met compliance requirements while enabling their commercial teams to leverage the benefits of the Commercial Cloud and be more competitive in the marketplace. By leveraging RSM’s expertise, they successfully balanced compliance with business agility, allowing them to pursue higher-value government contracts.
3. Full Compliance Migration – Transitioning entirely to a compliant cloud (GCC or GCC-High) for complete regulatory alignment, ensuring all operations meet government requirements.
Example: Full Compliance Migration for ITAR & EAR Data – A high-growth government contractor managing ITAR and EAR data required full regulatory compliance across their operations. RSM guided them through a complete migration to GCC-High. The RSM team was able to support this effort with a previously screened US only staff, handling all sensitive data in an RSM-owned secure enclave that can handle CUI data according to CMMC 2.0 standards and DFARS 7012 flow down provisions. RSM consulted with this GovCon manufacturer to navigate the functionality differences between Commercial and GCC High, ensuring that no necessary features were missing in the GCCH cloud. With the chosen solution, this client ensured that all business units adhered to stringent government security requirements, storing ITAR/EAR data in a secure enclave, handled only by US citizens in data centers on US soil. This eliminated operational risks associated with a split environment and positioned the company for long-term success in the federal sector.
Conclusion
RSM’s extensive knowledge in Microsoft D365 solutions, combined with our deep understanding of government contracting compliance, positions us as the ideal partner for businesses navigating complex regulatory environments. Whether clients choose to remain in the Commercial Cloud, segment their operations, or fully transition to GCCH/GCC-High, RSM provides tailored solutions designed for long-term success. We ensure that our clients’ security and compliance needs are met within their budget. Additionally, we help clients find the best possible solution for their business by providing viable options and clearly explaining the unique benefits and considerations of each approach, ensuring they make informed decisions that align with their operational goals.
For more information on how RSM can support your government contracting business, contact us today.
For information on D365 Business Applications – Jonathan.Reynolds@rsmus.com
For information on D365 Finance and Supply Chain – Mathias.Quandt@rsmus.com
Mathias Quandt
Mathias is a D365 F&SC delivery leader with 20+ years of experience in implementing ERP applications.