Being a government contractor can be extremely lucrative. However, you should have a strong understanding of government procedures and processes. We will name some things that all contractors should be aware of in order to be successful.
Contracting Officers
The Federal Government always conducts any kind of procurement business through contracting officers. These contracting officers have the authority to bind the government to a contract unless it is otherwise stated in writing. Make sure that the person you are dealing with is the contracting officer who is authorized to represent the agency or office that is going to award the contract.
Procurement
Government procurement has always been a part of advancing many national, economic, and social objectives. Government contractors must comply with the rules and regulations of labor standard statutes. This will include the Service Contract Act, Contract Work Hours and Safety Standards Act, and other statutory requirements that further socio-economic objectives, except for certain contracts where such legislation is specifically stated as non-applicable.
Kick Backs
You should be very careful not to do anything that might violate the integrity of the government process. These provisions include the “officials not to benefit” clause, the “anti-kickback” provisions, the “gratuities” clause, etc.
Disputes
There is always the possibility that you might have a dispute with the contracting officer. Many Federal contracts have clauses specifically setting forth provisions on how to resolve disputes. If you are unsatisfied with a decision made by the contracting officer you must be aware of the time limits on appeals before the decision is final. Appeals are heard by the Board of Contracts Appeal.
Follow Specifications
Contracting with the Federal government is not the proper moment to reinvent the wheel. Follow all specifications and measurements that were originally agreed upon in the contract. If you do something different, it may be too big or too heavy or may not fit and the government will not accept it. Simply comply with the contract terms, particularly the specifications.
Productions Schedules
In a production contract with the government, make sure that a production control schedule is established quite early. This will make sure that you always have the right materials in-house in order to meet delivery deadlines.
Subcontractors
If you are dealing with subcontractors, make sure that communications are clear and that they are prepared to perform or deliver on time. If there is an issue, notify the contracting officer as soon as possible to obtain some assistance. You do not want to miss your deadlines which will result in the government canceling your contract.
Be Savvy In E-Commerce and Marketing
Make sure you are up to date on all the latest technologies and software. For certain government agencies, you must be able to invoice and receive payments electronically. Also, make sure that you register on SBA’s PRO-Net database and contact the agency’s office of small and disadvantaged business utilization (OSDBU). This will give you an advantage when trying to market your business to the Federal Government.
Have A Clear Understanding Of The Government’s Accounting Requirements
The Financial Accounting Standards Board (FASB) states that contractors must comply with the following in order to work with the government:
- Federal Acquisition Regulations (FAR)
- Cost Accounting Standards
- FAR agency supplements
Understanding Audits
Your company should be clear on what the DCAA considers the responsibilities of federal contract actors. They include the following:
- timeliness of payments to subcontractors
- documentation of contractor oversight of subcontractors
- documentation of enforcement of flow downs
- documentation of support for subcontractor billings
- documentation of subcontractor reviews
Understand That Change Is Constant
Agencies are only allotted a certain amount of money through government funding. Changes in the administration can bring a total overhaul in what is a priority in comparison to previous years.
Many people think that governments are slow to change. However, as the world becomes more complex, a contractor needs to keep pace with the changing federal marketplace. It is extremely important for agencies to be transparent about their finances. Contractors must be strategic in anticipating and implementing modifications to any policies, procedures, and systems that support compliance, in order to maintain pace with changing requirements for their companies in regards to being a federal contractor.
The Key To Winning A Government Contract Is To Pay Attention To Guidelines
It is very important that you read closely what the request for proposals or RFPs wants in your bid. Make sure that you are aware of deadlines and who is handling the requests. Usually, small businesses have 6 to 8 weeks to submit a bid but this can vary, depending on the agency.
Make Sure You Have Your CAGE Code (Commercial and Government Entity)
This code is five characters and unique to your business. It’s basically your ID code, and government agencies will identify your business using this code. It is a bit like a social security number for your business. If your business includes more than one facility, then you will need multiple CAGE codes. Each location must have its own unique code, and each location must be registered separately with SAM.
Never Underestimate The Power Of Research.
Do your research. Make sure you understand what agencies will benefit most from your business. Make sure that you read our blog on how to put together a well thought out proposal when you bid for government contracts. The government can be a great source of revenue and security for any small business and we would love to help you succeed down this very lucrative path to prosperity.
How Do You Get Started Working With The Government?
SAM stands for System Award Management.
In order to do any business with the federal government, you must register your business in the System for Award Management. The government will not hire any type of business that has not registered in the SAM directory.
We have an article on our site, Everything You Need to Know About SAM for Small Businesses, that gives you important information about this process.
As a smart entrepreneur, you have already used our site to register in the SAM directory. Congratulations on taking this important first step to become a government contractor.