Once your company has won a federal government contract, the real work begins. If you're contracting with an agency for the first time, research its history of dealing with federal government contractors and see if you can find contractors willing to talk about their experiences.
Before you start work, check your contract carefully for unexpected or unusual requirements. Does it forbid overtime? Restrict subcontractors? Include security restrictions? Be sure you understand these issues at the outset. You may want to have lawyers or consultants look over the contract. Find out what government quality assurance structure is in place for your project. Does the agency want to send a representative for an on-site visit? Are regular progress reports expected? Should a prototype be submitted for inspection?
The person in charge of the contract for your company must be able to understand the project and its requirements, then translate them in a way your employees can understand. Project managers of federal contracts must oversee quality control, delegation of tasks, and management of that all-important delivery date.
Also, put everything in writing and archive it all: memos, time sheets, cost reports, and anything else related to the job. Transcribe oral instructions and record any modification to the official plan. Good records can be a lifesaver if a dispute arises on federal government contracts.
And make sure you know which office is responsible for all your contract — it may not be the same office that issued the contract. The Department of Defense, for example, uses Contract Administration Offices to oversee contractors.
Some additional things to be aware of as you begin work:
- Changes: The agency is allowed to alter contracts, but the contractor is supposed to receive fair compensation. For example, if the agency doubles its initial product order, the contractor must submit documentation of the cost involved in extra production and negotiate a new price for the work.
- Contract disputes: If you have a question about contract terms, first call the agency or administrator and try to resolve the issue. If that doesn't work, you must submit concerns in writing to the contracting officer. If the problem continues, your last hope before filing a lawsuit is to approach an agency appeal board.
- Termination: The agency can end a contract regardless of whether the contender is at fault. If the contractor didn't abide by the terms of the contract, the cancellation is called a Termination by Default and the contractor is paid only for the work the agency accepted. If the agency simply decides to cease work on a project, the stoppage becomes a Termination by Convenience, which means the contractor can submit settlement claims.
- Missed deadline: You will have a slim chance of getting paid for late work. Make sure your project plan is calibrated for delivery on the due date. Find out from the agency what circumstances would warrant an extension of your deadlines.
- Deliverables: You fought for the contract and succeeded in meeting its requirements. Now make sure the product reflects your hard work. Proper packing, shipping, labeling and branding will enhance the impact of the final deliverable.
- The Prompt Payment Act: This law is designed to make sure that federal agencies pay their bills within 30 days of receiving an invoice on federal government contracts. If they don't, they must add interest to their payment.
