Bidding on and performing on government contracts can be a complicated but lucrative process. To benefit from undertaking a government contract, it’s important for companies to understand the facets of these agreements.
What to Know Before You Bid: 4 Essential Tips
Before you invest time, money and resources into bidding on a government contract:
- Determine whether submitting a bid is in your company’s best interests, and
- Position your bid for approval.
As you prepare to bid on your first government contract:
- Register your business. Your business must have a Data Universal Numbering System (DUNS) number, which you can get for free through the Dun & Bradstreet (D&B) website. You cannot submit a bid without a DUNS number.
- Understand the process. One of the best ways to do this (and gain some relevant experience) is to serve as a subcontractor for a larger company already working a government contract.
- Take advantage of your competitive edge. If you’re a small, minority-owned and/or a female-owned business, be sure to mention it. These factors can provide a competitive edge, as many government agencies are encouraged to work with these types of businesses.
- Know the bid specifications. Carefully review the requirements, including the specific information requested by the contracting officer(s), how and where to submit your bid and the deadline.
You Won! What to Know as You Proceed
As you enter into and perform on your first government contract, be aware of:
- Contract specifications. These include the scope, limits, timeline, and budget of the planned work. Keeping abreast of these means you can fully deliver what’s expected while not providing anything outside of the scope of work.
- Your company’s cash flow. This can help you determine whether you need a line of credit to fulfill the contractual obligations.
- Relationships with others on your team. If you partner with other contractors or subcontractors, start these relationships with well-written contracts in order to minimize the possibility of future problems.
These insights can certainly help your company prosper in government contracting, but there might be many more matters to consider and address. The best way to set your company up for success with government contracts is to work with an experienced lawyer.
Do you need more legal advice regarding government contracts? Call (703) 224-4436 to speak with lawyer Seth Robbins at Robbins Law Group, PLLC.
We have considerable experience partnering with all types of government contractors, from small businesses to larger companies, and helping them at every phase of the contracting process — from procurement and negotiations to compliance, dispute resolution and more.