Understanding how government contracts work and your responsibilities
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Understanding how government contracts work and your responsibilities

On Behalf of | May 3, 2021 | Uncategorized

It’s possible for small, medium and big businesses to go after government contracts and to have the resources needed to complete that contract on time and up to standard. That said, government contracts are not the same as others and include a Statement of Work that you need to follow.

This Statement of Work defines the government’s expectations as well as other requirements that must be met. Usually, there are regulations that apply to the job, which you may want to discuss you’re your attorney before accepting the contract.

Getting your government contract: Prepare to bid

With any government contract, you should prepare to bid. There will be several companies, if not more, aiming to get the same contract, but you shouldn’t sell yourself short. Normally, businesses bid around 15% more than the project will take to complete, so that there is a decent profit. However, you may need to be competitive to obtain the contract, so keep that number in mind.

What should you do to prepare to bid as a small business?

As a small business owner, you may want to go to the Small Business Administration’s website to learn more about government contracts and how to make your business stand out among those who apply. You will need to take steps to show why working with your company is valuable and why the government should consider your bid, even if it’s more than others’.

Is it a good idea to work as a subcontractor first?

If you really want to learn how to work with the government and can do so, being a subcontractor is a good idea. You’ll learn more about the contract and what you have to do to meet the goals of that contract by working with a larger business. This may also help your business get the experience needed to bid, and win, a contract in the future.

Your attorney can walk you through the process of applying for a contract and meeting your responsibilities if you do want to bid on a government contract. Make sure you understand that contract thoroughly before putting together a bid.