Economic Hardship Often Spurs Innovation
A great number of amazing companies like Uber, Square, and Instagram were birthed in the last recession. Hardship often leads to amazing innovation. It will not be surprising if we see many innovative companies coming out on the heels of this pandemic. Think about how many talented people have been furloughed and now have the time to devote their energies elsewhere. Millennials and Gen Z have shown that they are generations that embrace the challenges of being an entrepreneur.
Take Hold Of Your Destiny
Some people are scared of the stress that often comes along with managing a business. They think that will not be able to handle keeping up with the ever-changing marketplace. What they often do not take into account is that day-to-day jobs can be just as stressful. Often, employees have to live up to the unrealistic expectations of several managers. Being an entrepreneur gives you more control over your destiny, rather than have your fate be in the hands of other people. This way you can shape your life according to your needs.
The Federal Government Offers Great Opportunities For Many Types Of Businesses
The government designates a portion of the contracts for women-owned small businesses, small disadvantaged businesses, companies within historically underutilized business zones (HUBZone), and service-disabled, veteran-owned small organizations. This allows underserved groups to have a real chance to get awarded lucrative government contracts.
Government Contracts Offer Security In These Uncertain Times.
Covid-19 has halted a lot of different industries. However, the government must continue to move forward for the health and welfare of its people. Government contracting can be a shining light in the pandemic darkness and provide a lifeline to many struggling businesses who are trying to survive this unprecedented situation.
You should remember that government agencies need goods and services in a year-round capacity. This makes them one of the few consumers that are recession-proof and a great source of steady reliable income.
The Federal Government is Sympathetic to the Situation
The government understands that many contractors are in precarious situations. Right now more than ever government agencies are emphasizing how important it is to communicate and document issues in scheduling and performance for potential relief in the future.
The Office of Management and Budget issued the following statement to the various government agencies:
“be flexible in providing extensions to performance dates if telework or other flexible work solutions, such as virtual work environments, are not possible, or if a contractor is unable to perform promptly due to quarantining social distancing, or other COVID-19 related interruptions.”
Government contractors may be entitled to relief for the following reasons:
- Delays caused by Covid-19
- Increased performance costs due to Covid-19
- Costs from government-initiated contract terminations caused by COVID 19
- Performance issued that are the result of complications to mitigate damagesGovernment due to COVID 19
Cost Recoveries
Most government contracts operate under the “four corners of the document rule” This means that you must look into the terms and conditions of the contract itself to understand what can be utilized to protect your interests. An example is if a contracting officer failed to cooperate with the terms of the contract.
Public Law 85-804, the President may “authorize any department or agency … to enter into contracts or into amendments or modifications of contracts … whenever he deems that such action would facilitate the national defense.” This allows for relief under extraordinary circumstances, which could include situations such as those that arise under this unexpected pandemic.
Working With The Government Is Great For Marketing
The government is one of the most powerful consumers in the world. Being a government contractor is a wonderful way for any business to grow its reputation in the digital marketplace as well as other forms of advertising. It is a fantastic way to build a strong reputation in a relatively short amount of time.
Work Stoppages
In government contracts, a stop-work order can be issued for 90 days or more depending on the agreement. After this period is over, usually the contractor must resume the work or the contracting officer terminates the contract. The government contractor must assert entitlements to an adjustment within 30 days after the period ends to collect a recovery. This usually consists of equitable adjustment plus profit or extension of billing schedule or both.
This remedy is available to only involuntary work stoppages. A voluntary work stoppage would consist of people not coming to work by their own decisions, due to the need to self-quarantine during the pandemic. This would excuse performance but would not be considered a contestable delay.
With any delay, contact the contracting officer, document the delay, and that it was due to a government act, and document the cost impact of the delay.
This Pandemic Will Not Last Forever
The Federal government will soon be back on track and in much need of goods and services provided by small businesses. Many agencies, such as the Department of Defense, are fully funded for the year. and will be moving forward with their contracts immediately.
To do any business with the federal government, you must register your business in the System for Award Management directory. The government will not hire any type of business (large or small) that has not registered in the SAM directory.
SAM Directory Can Help
SAM stands for System Award Management.
To do any business with the federal government, you must register your business in the System for Award Management directory. The government will not hire any type of business (large or small) that has not registered in the SAM directory.
Remember, registering for the SAM directory gives a business automatic entry into the extremely lucrative marketplace of the federal government. It is also a crucial step for applying for rewarding government grants that can help your business reach its full potential. Let us, the professionals at SAM Directory, make sure that you do all that is needed to not miss out on this important opportunity. We will make certain that your application is processed quickly and efficiently so you can start being a federal contractor as soon as possible. We remove this hassle so you can go about the important mission of running your company.