Bidding Process on a Federal Government Contract

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When a company has a product or service to sell, the owner may consider contracting with the United States government or a federal agency. When this process is possible, there are various steps the owner of the business should understand and research before bidding starts.

The understanding of contracts with the federal government is often lacking with owners of businesses that engage in these arrangements until after the paperwork has been signed. The administrative and regulatory processes involved may not become clear until the business manager or owner must apply certain rules to acquiring materials and resources. The bidding for a contract should be fully understood long before it is finalized. For this to be accomplished, a lawyer should be hired to assist with the legal matters. Other experts such as a tax consultant and accountant may be necessary for the numbers.

Many government contracts require the Federal Acquisition Regulation system to be utilized during a government business agreement. This enforces certain rules when hiring employees, buying or acquiring materials, secrecy and confidentiality requirements and similar concerns that limit various business activities. The owner of the company must comply with these regulations and could be fined or penalized if he or she violates the agreement. When contracting with the federal government, there is the possibility of losing other clients and associations during the contracted time. However, the revenue accrued with governmental deals often outweighs any other restrictions or limiting factors.

The Government Market

Based on the specifics of the FAR, the company may be restricted from various activities and clients’ business. However, there is a larger market open to the business for products and services. When contracted with the federal government, it may be possible to increase revenue greatly. However, it is important to know how to bid on these contracts to progress to the revenue process. The first step is to plan and research the contract that appears attractive. The large or small bid and what is being offered may entail a different process to follow. For a smaller company, a single contract could lead to bigger and more opportunities.

The business readiness for selling to the federal government may determine to attempt a large or small bid. The service record and performance of the past could lead to a successful contract. Other procedures to include employee assistance must be considered, and marketing to the government must be applied appropriately. After a bid has been discovered, the process may begin with responding to a request for services or products from the government. The response is for a Request for Proposals, Quote and Invitation to Bid which may all require online access. Found through a website, the company owner may proceed to the next step.

Bid Submission Explained

Planning, research and understanding possible clients with government contract agreements assist in knowing the market for services or products. The information garnered through these processes helps to create the bid for a government contract. The lowest price is not necessarily best in these situations. Experience, performance and company stability often outrank less money expended. The possibility that the job will be completed is generally more sought after then saving money for the agency. This makes crafting the bid rely more on the business data and how well the owner is able to properly complete client relationships and projects.

The process to submit to an agency continues on after the bid has been crafted. More information may be requested. This could require an oral presentation for the bid itself. The need for this process may arise when there are multiple bidders considered for the contract. The details of the bid and how work is accomplished may be requested. When a Request for Proposal is part of the procedure, an oral presentation is more likely, but any of these bids could lead to this. The contact may be awarded next, or more data could be asked for by the agency. Continued communication is considered interest in the company, and the project may become realized shortly.

Continued Steps for Bidding

After all processes have been exhausted, there should be open and regular communication, meetings, deadlines for certain items and additional details to finalize the processes. It is important to hire a lawyer before the contract is signed to ensure it is beneficial for the company. Unexpected or negative features of the project could result in complications or difficulty in completing processes and creating the product. The legal representative may assist in reducing concerns.


Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer.

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