GovCon CFO Practice · Sync CFO
GovCon CFO Practice · Sync CFO

Fractional and Interim CFO Services for Government Contracting and Defense Companies.

GovCon-specific CFO leadership for middle market government contractors at $10M to $250M in revenue — DCAA compliance, indirect rate architecture, contract economics, and exit readiness. Led by Steve Radanovic, a 27-year finance veteran with 20 years in GovCon.

27
Years of GovCon CFO experience — Steve Radanovic
$10M–$250M
GovCon revenue band served
50+
PE deals across the Sync bench
Days
Typical time to deploy
What We Do

What does a fractional CFO do for a GovCon company?

A fractional CFO for a government contracting company provides part-time CFO-level financial leadership — typically 2 to 3 days per week — covering the six domains that determine whether a GovCon company is positioned to grow, compete, and eventually exit at a premium multiple.

GovCon financial complexity is fundamentally different from commercial companies. DCAA audits, FAR Part 31 cost principles, indirect rate pools, CPSR requirements, and contract-type economics all require a CFO who has been in a government contracting environment — not a generalist learning on the job at your company's expense.

Sync CFO's GovCon fractional CFO practice is led by Steve Radanovic, a corporate finance executive with 27 years of success across PE-backed and founder-owned government contracting businesses, including multiple successful exits. Steve has been in the seat — not just advised from outside it.

"Most GovCon founders are excellent operators and rainmakers. Almost none of them have the financial architecture to maximize what they've built — until it's too late to matter." — Steve Radanovic, Sync CFO

DCAA Compliance

Timekeeping adequacy, cost principle compliance, incurred cost submissions, audit preparation, and pre-award survey readiness.

Indirect Rate Architecture

Pool structure review, allocation methodology documentation, provisional vs. final rate management, and competitive pricing optimization.

Contract Economics

Contract-level P&Ls, fee discipline on CPFF, T&M ceiling management, FFP pricing strategy, and margin visibility by contract.

Backlog Quality

Funded vs. unfunded backlog reporting, recompete exposure management, IDIQ task order tracking, and past performance documentation.

Finance Infrastructure

ERP configuration, monthly close acceleration, management reporting package, 12-month cash forecast, and finance team development.

Exit Readiness

EBITDA normalization bridge, audited financial statements, virtual data room, buyer narrative, and PE diligence preparation.

Timing

When does a GovCon company need a fractional CFO?

GovCon companies hit predictable inflection points where the finance function goes from an overhead cost to an existential constraint. Here is when a fractional CFO stops being optional.

Crossing $15M–$25M Revenue

Indirect rate structure built at $5M no longer works at $20M. DCAA exposure increases. Contract complexity multiplies. Finance needs a dedicated leader — not a controller wearing two hats.

Preparing for a DCAA Audit

A pre-award survey failure or incurred cost audit finding can cost contracts and enterprise value simultaneously. A GovCon CFO is well positioned to prepare for and manage DCAA scrutiny.

Planning an Exit or Recap

A PE sponsor or strategic buyer will put your financials under a quality of earnings process. If you have not been building toward that day for 18 to 24 months, the diligence will find problems that cost real money.

Indirect Rates Not Reviewed in 2+ Years

Indirect rates that worked at last year's revenue level are costing you cost recovery and competitive pricing this year. A rate review typically pays for itself in the first engagement.

Major Bid or Recompete

Your largest contract is coming up for recompete. A GovCon CFO stress-tests the financials, ensures the pricing model is defensible, and prepares the cash flow bridge for the gap between contract end and new award.

PE Sponsor Joins the Cap Table

A PE sponsor has specific expectations: monthly board reporting, 13-week cash forecast, covenant compliance, and EBITDA management. A GovCon CFO who understands both PE and GovCon requirements is essential from day one of a new ownership structure.

Risk Architecture

The financial risks GovCon founders most commonly underestimate.

These are the risks that surface in every GovCon M&A diligence process — and the ones a GovCon fractional CFO addresses before they become deal-breakers.

Compliance Risk

  • DCAA incurred cost audit exposure
  • Unallowable cost misclassification
  • Inadequate timekeeping system controls
  • FAR Part 31 cost principle violations
  • Pre-award survey failures on new bids

Revenue Risk

  • Recompete concentration above 40% of revenue
  • Funded backlog cliff exposure
  • CR / continuing resolution slowdowns
  • Revenue recognition errors on long-term contracts
  • IDIQ ceiling vs. obligated value mismatch

Exit Risk

  • EBITDA normalization — addbacks not defensible
  • Absent or unaudited financial statements
  • Key person dependency — no second tier
  • Weak QofE readiness (no virtual data room)
  • Pension and benefit plan deficiencies

Operational Risk

  • Cash flow mismatch — net 60-90 government payments
  • Line of credit insufficient for rapid growth
  • Subcontractor flow-down risk not managed
  • ERP not DCAA-adequate
  • Provisional vs. final indirect rate variances
Deployment

Three GovCon CFO deployment models.

Matched to where you are in your growth and exit journey.

Fractional CFO

Build & Scale

2 to 3 days per week. Owns the finance function. Builds the team, the systems, and the reporting cadence. Right for GovCon founders who need a CFO but cannot justify a full-time hire.

$25M–$250M Revenue · 12–24 Month Engagements
Interim CFO

Stabilize & Protect

Full-time for a defined period — typically 6 to 12 months. Crisis response, leadership transition, or surge capacity for a DCAA audit, recapitalization, or sale process.

Any Revenue Level · 6–12 Month Engagements
Exit CFO

Maximize & Exit

Deployed 18 to 24 months before a planned sale. Owns diligence readiness, EBITDA normalization, financial packaging, and buyer positioning. Built for the GovCon founder who wants to maximize exit value.

$30M+ Revenue · 18–24 Month Pre-Exit
Frequently Asked Questions

GovCon fractional CFO — common questions.

What does a fractional CFO do for a GovCon company?
A fractional CFO for a GovCon company provides part-time CFO-level financial leadership covering DCAA compliance, indirect rate structure, contract-level economics, backlog quality management, cash flow forecasting, and exit readiness. For GovCon companies, a fractional CFO also manages the relationship with DCAA auditors, ensures incurred cost submissions are filed correctly, and builds the financial infrastructure needed to support a future transaction.
When does a GovCon company need a fractional CFO?
A GovCon company typically needs a fractional CFO when it crosses $15M to $25M in revenue, when it is preparing for a DCAA audit or pre-award survey, when indirect rate structure has not been reviewed in more than two years, when the founder is thinking about an exit or recapitalization in the next 18 to 36 months, or when the finance function is running at controller capacity but the business needs CFO-level strategic guidance.
What is DCAA compliance and why does it matter?
DCAA stands for Defense Contract Audit Agency — the federal agency that audits government contractors' accounting systems, cost claims, and financial practices. DCAA compliance means your timekeeping system, cost accounting practices, indirect rate pools, and incurred cost submissions meet the standards required for cost-type contracts. A GovCon fractional CFO ensures DCAA adequacy, manages audit exposure, and structures the finance function to withstand scrutiny — which directly affects contract award eligibility and enterprise value.
What is indirect rate structure in government contracting?
Indirect rate structure in government contracting is the methodology by which a contractor allocates shared costs — fringe benefits, overhead, G&A, and bid and proposal costs — across individual contracts. The structure determines how much cost is recoverable on cost-type contracts, how competitive the company can price on fixed-price bids, and whether the accounting system will survive a DCAA audit. Most GovCon founders build their indirect rate structure by accident. A GovCon CFO reviews and optimizes it for both DCAA defensibility and competitive pricing.
How does a fractional CFO help a GovCon company prepare for an exit?
A fractional CFO prepares a GovCon company for exit by building a defensible EBITDA normalization bridge, ensuring three years of audited or reviewed financial statements exist, organizing a virtual data room, documenting backlog quality (funded vs. unfunded, recompete exposure), cleaning up indirect rate compliance, and mitigating key person dependency. In GovCon exit preparation engagements, disciplined EBITDA normalization and stronger financial packaging can support meaningful EBITDA growth and multiple expansion over a typical 24 to 36 month runway. Actual results vary by company, contract base, and market conditions.
Who leads the Sync CFO GovCon practice?
The GovCon CFO practice is led by Steve Radanovic, a corporate finance executive with 27 years of success across PE-backed and founder-owned government contracting businesses, including multiple successful exits. Steve specializes in DCAA compliance, indirect rate architecture, contract economics, backlog quality, and exit readiness. Contact Steve at stever@sync-exec.com.

Ready to talk to a GovCon CFO?

Start with the GovCon CFO Readiness Diagnostic — a 15-minute scored assessment across 6 domains that shows exactly where your finance function is exposed. Or reach Steve Radanovic directly.

Take the Diagnostic → Email Steve Radanovic

Related

GovCon CFO Readiness Diagnostic → Sync-to-Sale: Exit-Ready Financials → Interim CFO Services → Meet Steve Radanovic → GovCon M&A Insights →

Related

Fractional CFO for PE Portfolio Companies · DCAA Compliance · GovCon Indirect Rates