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The Hidden Costs Killing GovCon Profitability
(and How CVRD Fixes It)

When an employee complains that their health plan sucks, it shouldn’t be annoying. As a person in HR, it should be music to your ears. And it feels infuriating…sure. But it’s a clue, not a total failure. Each frustration people experience (a denied claim, a surprise bill, a premium increase) is just a symptom of deeper structural flaws in our healthcare system.

So…how did we get here? Slowly. And with plenty of misplaced trust. We let misaligned incentives and complacency boil the proverbial frog, creating today’s health insurance chaos.
By
CVRD Health Team

Profit Loss Isn’t Always Loud

Most GovCons focus on rates, headcount, and delivery — but forget to track what eats margin from the inside: their fringe. CVRD was built to fix that blind spot.

“Fringe mismanagement isn’t just a finance issue. It’s the silent threat to every GovCon’s bottom line.”

The Problem No One Talks About in GovCon

GovCon projects operate on razor-thin margins. But while most contractors obsess over labor rates, they miss the silent killer: unpredictable fringe costs.Group health plans look simple on paper. In reality, they turn every paycheck into a gamble. One wrong renewal, one bad class setup, and you’ve lost your margin.

The Problem No One Talks About in GovCon

CVRD isn’t just a benefits platform. It’s a full fringe optimization system built for federal contractors.
You get:

  • Predictable costs that protect your profit
  • Real employee choice (without overwhelming them)
  • Full compliance with DOL and ACA requirements
  • Real-time tracking and audit-ready reporting

Instead of juggling spreadsheets, guesswork, and manual tracking, CVRD gives you control.

The Problem No One Talks About in GovCon

We call it the CVRD method. Here’s the breakdown:

1. Model

We forecast group vs. ICHRA costs and build ACA-compliant employee classes.

2. Enroll

Employees choose the best plan for them, with human advocates guiding the way.

3. Fund

CVRD handles the payments, tracks excess, and monitors fringe in real time.

4. Comply

You get monthly DOL reporting, full audit prep, and peace of mind.

Why Your Employees Will Actually Like This

Most benefits systems confuse and frustrate employees. CVRD flips the experience:

  • No surprise paycheck deductions
  • Clear control over their health plan
  • Full-service guidance and support
  • Automatic 401k funding with unused fringe

Bottom Line: CVRD Makes GovCon Work Better

You didn’t get into government contracting to babysit benefits plans. With CVRD, you get a system built to serve both your P&L and your people.

Educate & Engage

Employee education and engagement is at the core of our founding beliefs. Our platform is uniquely designed to guide and educate employees through their choices and empower them to spend wisely - for happier, healthier employees all year long.
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