Posted: February 18th, 2022

What prospects to government contracts

What prospects to government contracts should know

Dealing with the government as a contractor can be profitable and provide a consistent source of revenue. On the other hand, government contracting can be extremely difficult. It can also present a range of problems, including establishing the contract, Negotiating contract terms and conditions, Compliance with state and federal contracting requirements, Federal contract laws and processes, Government investigations, claims, and disputes, among many others. While some challenges are simple to overcome, others may result in more complicated situations involving investigations and lawsuits. Working with the government as a contractor can be very cumbersome. To navigate some of those challenges, they need to work hand in hand with a business law attorney to handle most of the process and help them understand to ease the process. 

Who is a government contractor?

Today let’s understand who the government contractors are. A government contractor is a private corporation that manufactures and provides goods and services for government entities. The government hires contractors when they win contracts put up to bid—government contractors get contracts by responding to proposals with the lowest cost bid required by law. Government contractors, like government agencies, come in a variety of sizes. While the federal government awards some contracts to large corporations, it also reserves some for small firms. The DOD (Department of Defense) and DOJ (Department of Justice) are there to aid and maximize small businesses in the United States, especially once run by women, service-disabled veterans, HUBZone certified enterprises, and small disadvantaged businesses toseek contracts.

What prospectives to government contracts should know

Here are a few guidelines to follow to win any government contracts. The federal government is quite picky about the items and services it buys. Its goal is to ensure that competition is fair and open, that prices are competitive, that consumers get what they pay for, and that they follow the law. Different sorts of federal purchases are subject to various rules and restrictions. Most federal agencies are governed by the Federal Acquisition Regulation or the Defense Federal Acquisition Regulation Supplement, so applying for any contract is essential. Individual companies have their own set of guidelines as follows.

  • The size of the business.
  • Limits to what they can subcontract.
  • Report and document any business activities.
  • The least amount to be spent.
  • Purchasing restrictions.

What prospectives to government contracts should know

After the contractors adhered to the said guidelines, we discussed the next stage is, the evaluation process in the previous post. The process of examining a contract submitted by a possible contracting partner to check whether the contract’s terms fit the criteria set forth and whether the contract’s terms are acceptable or will need to be amended to be okay. The bid evaluation process has four major stages, which include:

§ Preliminary Exams for Responsiveness to Formal Qualification Requirements: what happens in this stage is that the eligibility of the companies and all the requirements are met.

§ Compliance with Technical Requirements Evaluation: The panel assesses compliance with quality standards (specifications) example is bidders experience, delivery schedule etc

§ Prices Evaluation: the panel checks the offered price for computational errors

§ Due diligence, the lowest responsive bidder is verified to ensure that the bidder still meets the prequalification conditions.

What prospectives to government contracts should know

Key issues are affecting government contractors. Many contractors have faced legal challenges from the government for the following issues:

§ Government requirements: Contractors must adhere to specified rules or risk losing their contracts or, worse, facing a lawsuit. 

§ Government contracts investigation: Government entities conduct government contractors’ inquiries. Due to increased scrutiny from the public, public committees, and legislatures, the agencies focus on government contracting abuse, waste, and fraud.

§ Litigations, disputes, and claims: While some claims are resolved outside of the courtroom, others may go to trial. In this situation, you’ll need an attorney with experience litigating government contracting issues which can represent you in state courts. 

What prospectives to government contracts should know

There are various reasons a contractor may rub shoulders with the government. Let us look at some of the reasons why the government may want to sue a contractor, including Payment and billing disputes, Lawsuits under the False Claims Act, Contract termination, Payment and billing disputes, and claims for breach of contract. We can help you deal with the stress of having the government as a customer at Michael B. Schulman & Associates. Winning a federal government contract can transform your company’s financial situation. Still, we are here to ease the process. We represent interests in various legal issues, including business law, foreclosure defence, trademark law, family law, and government contracting, and have been doing so for over 40 years.


What prospectives to government contracts should know

There are several steps to follow to qualify for any government contract. Today let us walk through the whole process;

§ Get a Data Universal Numbering System(DUNS): The federal government uses this unique 9-digit number to identify the businesses with which it does business.

§ Register for the System of Awards Management: They will need to fill out four questionnaires here.

§ Assign themselves a North American Industry Classification System: Find the numbering system that best describes their company and assign it to the business.

§ Familiarize themselves with the contracting regulations: This is something that their lawyer can assist them to walk through. However, depending on the federal agency with which they wish to conduct business, they need to understand the law.




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