Deltek Costpoint
The dominant ERP for US government contractors — purpose-built for DCAA/DCMA compliance, project accounting, and federal contract billing.
The reference ERP for US federal government contractors.
Deltek Costpoint is the ERP most US federal contractors run — from small defence primes to Fortune 500 GovCon firms. Its wedge is not general-purpose finance; it's the specific compliance shape federal contracting demands: DCAA-audit-ready accounting, indirect rate calculation, project cost accounting, contract billing per FAR/DFARS, and CPFF/T&M/FPI contract types.
It comes in cloud and on-prem flavours (Deltek's cloud is the strategic path). The competitive moat is compliance depth — general-purpose ERPs can be made to work for GovCon, but Costpoint is what audit-ready shops actually run. The trade-off: outside GovCon, it's overkill and less capable than peer ERPs.
Strengths & trade-offs
What buyers routinely love — and what they realise 12 months in.
Strengths
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DCAA / FAR compliance nativeIndirect rate pools, unallowable cost tracking, audit trail — all built in, not configured on top.
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Project accounting depthMulti-year, multi-fund, multi-contract project accounting is the platform's core competency.
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Federal contract billingCPFF, T&M, FPI, and hybrid contract types handled with proper indirect burden.
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GovCon community & ecosystemDeep partner base (Baker Tilly, PwC, ISBS, Aronson) and a specialist consulting community.
Trade-offs
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Not a general-purpose ERPOutside GovCon, it's overpriced and over-complex for the actual need.
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UX shows its ageModernization is underway; still not on par with cloud-native peers for day-to-day usability.
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Implementations require specialistsYou can't hire generalist ERP consultants for Costpoint. GovCon specialists cost more and are scarcer.
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TCO is highLicences + specialist implementation + ongoing compliance advisory add up. Small GovCons often feel the pinch.
What it costs
Enterprise subscription pricing by users and modules. Small GovCons often start with Deltek Vantagepoint (services) or Ajera; Costpoint is for firms with real federal contract complexity.
Cloud subscription for a small-mid GovCon. Scales with users and modules.
Traditional on-prem — declining as new sales move to cloud.
Deltek T&E is a common companion module.
Specialist GovCon partner-led. 6–18 months typical.
What ships in the box
- FinancialsGL, AP, AR, project GL
- Project AccountingMulti-contract project costs & revenue
- Contract & BillingCPFF, T&M, FPI billing
- Time & ExpenseLabor charging, timesheets
- Materials ManagementProcurement, inventory
- HR & PayrollGovCon-specific HR/payroll
- ManufacturingMRP for GovCon manufacturers
- Compliance & ReportingDCAA audit, FAR reporting
Where Costpoint is the right pick
Small-mid GovCon growth
GovCons moving from QuickBooks + spreadsheets to real compliance-ready ERP. Costpoint is the default.
Federal prime contractor
Firms bidding as primes on FAR-based contracts need Costpoint-grade compliance.
Aerospace / defence manufacturer
GovCon manufacturers where project accounting meets MRP — Costpoint handles both.
Post-M&A GovCon consolidation
Acquired firms rationalising onto one compliance-ready platform.
What it plays well with
Common systems teams connect on day one.
- Deltek Time & Expense
- Deltek Talent Management
- Salesforce
- Microsoft 365
- Concur
- ADP
- Paycom
- Coupa (procurement)
- DocuSign
- Power BI (via connector)
What to compare it against
If Costpoint isn't landing on paper, these are the platforms buyers weigh next.
| Tool | Best for | Deployment | Starts at | |
|---|---|---|---|---|
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Deltek CostpointDeltek
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US government contractors | Cloud & on-prem | $150k+/yr | — this profile — |
|
CGI MomentumCGI
|
Federal agencies | On-prem & cloud | Enterprise | Compare |
|
Unanet ERP GovConUnanet
|
Small-mid GovCons | Cloud SaaS | ~$100k+/yr | Compare |
|
Oracle Cloud ERP + PPMOracle
|
Large GovCons / federal | Cloud SaaS | Enterprise | Compare |
|
SAP S/4HANA (Public Sector)SAP
|
Large defence primes | Cloud & on-prem | Enterprise | Compare |
What we tell clients about Costpoint
For a GovCon, Costpoint isn't a preference — it's usually the answer. The interesting question is when to move to it.
For a growing federal contractor, moving to Costpoint is a maturity milestone — typically triggered by the first large FAR-based prime contract or a DCAA audit finding on a legacy stack. The migration is real work but the compliance return is immediate.
The mistake we see: waiting too long. Small GovCons that ride QuickBooks or a general ERP through their growth to $50M revenue end up doing an emergency Costpoint implementation on a compressed timeline. Plan the move before the audit forces it.
Talk to someone who's implemented it.
Skip the sales demo. Get an unfiltered read on whether Costpoint fits how you actually run — from operators who have led Costpoint programs from selection through go-live.
Book a discovery call