The government is moving to a new provider to validate and track its business with contractors and other parties.
For government contracting success, it is vital to understand the roles, responsibilities and authorities for the principal personnel with whom the contractor must do business.
The execution of your contract (signing by both parties) is a key benchmark in government contracting. It triggers several events such as the start of the period of performance and the delivery schedule time period. Execution begins a billing period start date, and contractual obligations by the government and the contractor.
Because the world has become tightly wired technologically and the current economic situation ties us inexorably to foreign economies, it is likely small business will encounter the import/export process either on the selling or the buying end of federal government contracts involving foreign countries. This is particularly true with Foreign Military Sales (FMS) contracts through DOD and services contracts with civilian agencies such as USAID.
The Federal Acquisition Regulation (FAR) 15-204-1 specifies a uniform contract format for federal government contracts. You have encountered this format during the RFP stage of your procurement since the government is required to utilize it in structuring the request for proposal (RFP), leaving blank those items, which are subject to negotiation such as final contract pricing. Your contract is divided into four parts, with various sections within each part. Prime contractors issue subcontracts flowing down terms and conditions, pricing and other topics in an identical format.
Source: SMALL BUSINESS FEDERAL GOVERNMENT CONTRACTING (“Smalltofeds”): FEDERAL GOVERNMENT CONTRACT FORMAT
In contracting for supplies and services the federal government utilizes several different contract types. The nature of these contract vehicles has evolved over a period of years based on the government’s experience in the acquisition types.
Source: SMALL BUSINESS FEDERAL GOVERNMENT CONTRACTING (“Smalltofeds”): FEDERAL GOVERNMENT CONTRACT TYPES
In small business government service contracting, it is necessary to establish a written policy and procedure disclosing time keeping practices to government auditors and fact-finding teams. Included must be the company process for both pricing and accounting for overtime. In doing so, topics such as compensated and uncompensated time must be addressed.
Service contracting to the federal government is a natural venue for small business. It does not require a product with a niche market or capital intensive manufacturing facilities.
An option to recruit prospective employees and associates who have previously worked in businesses that have contracted with the government is by utilizing contingent hire agreements. Such individuals prospectively bring expertise and qualifications with them and lend credibility to your enterprise proposals.
Some contractors choose to operate on “risk,” continuing to perform on a contract while exceeding the incremental funding in booked cost and obligations. The government is under no obligation to reimburse the contractor for amounts exceeding incremental funding.