What Is Government Contracting?
Government contracting is when specific government agencies contract with private companies for particular goods or services. The agencies usually put out a contract or often a request for proposal (RFP), and various companies can place bids for the project. Once an agency selects a particular business, a contract is signed, and that business is now considered a government contractor.
What Do You do If The Government Makes A Decision You Disagree With Regarding a Contract?
A small business has several remedies ranging from filing an essential protest to taking the government to court.
First, it is essential to understand the basic terminology to understand the options available to a company.
What Is The Difference Between A Protest vs. A Dispute?
A protest involves a defective bid or awarding a contract to a different bidder. In contrast, a dispute consists of an issue with the contracting officer that arises after you have been awarded the government contract.
The following are the three Federal Bid protest Levels:
- Judicial action was brought to the United States Court of Federal Claims (COFC).
- Protest filed with the (GAO) Government Accountability Office.
- An agency-Level objection was filed with the agency conducting the procurement.
It is important to note that a protest must be filed within ten days after the basis of the rally is known or should be known. Any objections that exceed this 10-day limit will automatically be thrown out. If you want to go forward, you will have to go to a higher level like the United States Court of Federal Claims.
Protesting A Bid Or Award
You must be an interested party, which means a prospective bidder who will be affected by the award economically. This usually means receiving the prize if your protests are sustained.
One such challenge would be that the bid was defective. A defective proposal can include the following:
- The omission of a required provision
- The ambiguity of Important facts
- Indefinite evaluation factors.
Decision To Protest
If you do decide to protest, it is in your best interest to call counsel as soon as possible. Contract law can be very complicated, and it would be an excellent idea to consult with your legal counsel.
If you decide to protest, you have avenues that can guide you through the process. You can go to your local PTAC to get started in the process and seek legal counsel. You also should familiarize yourself with Part 33.1 of the FAR. This will help you understand the requirements and your rights.
Disputes
A dispute is when a government contractor has issues or material disagreements related to the contract itself and therefore files a claim.
A claim is defined as a demand by one of the contracting parties seeking, as a matter of right, the payment of money; the adjustment or interpretation of contract terms, including the time of performance. This also includes other relief under or relating to the contract.”
The Government Would Like to Keep Contract Conflicts Out of Court
All contractors have the right to dispute and appeal. However, the government prefers to resolve all contractual issues in controversy by mutual agreement at the contracting officer’s level. The government expects you to use reasonable efforts to resolving disagreements before the submission of a dispute.
Remember To Be Reasonable
When an unfair decision is put forth, it definitely should be protested with voracity. However, you should be reasonable in your claims. The federal government is a very lucrative customer, and you do not want to harm this relationship for unnecessary reasons.
What Do You Do If The Government Makes A Decision You Disagree With Regarding a Contract?
A small business has several remedies ranging from filing an essential protest to taking the government to court.
Disputes Are Only For The Contractor
Only a contractor is allowed to file a dispute claim. This means that subcontractors can not enter into the federal dispute process. This is because the contractor is an original party to the contract.
Typical Contractor Disputes
Some common contractor disputes are as follows:
- Defective specifications
- Changing delivery dates
- Failure of the government to supply a contractor with what they need to fulfill the requirements of the contract properly
- Any other “event” that would keep a contractor from completing the contract or from being able to perform the contract.
The dispute is triggered when one of these events occurs and all informal attempts to resolve the issue fail.
Procedures for Disputes
For a dispute, a contractor must submit the claim in writing to the contracting officer.
The contractor should describe the following in the claim:
- Situation
- State
- What action the suit is asking for
- Request a final decision.
The contracting officer will have 60 days to respond after receiving the written notice. If the contractor has not heard from the contracting officer in this period, the request is considered denied.
If the claim is denied, the contractor can file a written “Notice of Appeal” with the Contracts Appeals Board and send a copy to the contracting officer. The contractor must do this within 90 days of the denial.
How Do You Get Started Working With The Government?
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. The government will not hire any type of business that has not been written in the SAM directory.
We have an article on our site, Everything You Need to Know About SAM for Small Businesses, that gives you essential information about this process.
Sam Directory Can Help
Again the first step to obtaining lucrative government contracts is making sure that your business is registered with SAM. Let us take this complicated process off your hands so you can focus on winning some of these valuable proposals. We can make your life easier and get you in the door to a very profitable new revenue stream with the government. As a visionary entrepreneur, you understand how using our site to register in the SAM directory is the first step to lucrative government contracts. Congratulations on taking this critical first step to becoming a government contractor.