Government Contracts
The federal government and state governments across the U.S. must have contracts to operate. They need to secure coffee beans for soldiers, get paving services for federal highways, and countless other things. The federal government is one of the largest contractors in the world. It is also one of the most selective because the businesses are highly vetted. Contracting with the government is competitive, time-consuming, and administratively burdensome. It can also be very lucrative.
This article provides an overview of government contracts for small business owners. If you are considering government contract opportunities, contact an experienced government contracts lawyer. An experienced government contracts lawyer will be familiar with the process and guide you through every step.
Government Contracts, Acquisitions, and Procurements
The U.S. government and federal agencies need goods and services. To get this, they contract with small and large businesses. There are special rules and regulations when a business works with the government. These rules make up government contract law.
Several statutes and regulations govern federal contracting. These laws generally encourage competition, achieve socioeconomic goals, and spend taxpayer money appropriately. They also allow the government powers to alter or terminate contracts that regular businesses may not have.
Doing business with the federal government can be lucrative but may require extra preparation. The federal government may require background checks for you, your employees, and subcontractors. They may also require:
- Upgrading cybersecurity efforts
- Customer vetting
- Procurement data
- Market research
- Pricing data
Additionally, because the government is a sovereign entity, there are laws for uniform legal procedures when it comes to litigation and negotiating contracts.
Federal Acquisition Regulation
The Federal Acquisition Regulation (FAR) applies to many government contracts. This includes executive agency acquisitions, mandatory contract clauses, exceptions, and competition requirements. These regulations create uniform procedures for acquisition.
The regulations within the FAR involve statutes like the Competition in Contracting Act. Most government agencies have to comply with the FAR. But some agencies are exempt. This includes the U.S. Mint and the Federal Aviation Administration.
Competition in Contracting Act
Passed in 1984, the Competition in Contracting Act (CICA) was a way to reduce costs and encourage competition. This would also allow small businesses to secure contracts with the government. It also provides a more transparent system for award management. Each government agency must select an advocate to review contracts. This advocate may challenge contracts that could potentially limit competition.
Under the CICA, any qualified company can submit an offer to the government. Procurements of all contracts must be “full and open.” If a government agency intends to procure a service or goods valued at over $25,000, it must first advertise the contract for at least 15 days. This way, multiple companies can bid for the federal contract.
Federal Acquisition Streamlining Act
The Federal Acquisition Streamlining Act aimed to simplify the procedures for government contracting. This law changed the strategy for government contracts. After the changes, the government should seek the bid with the best value. Additionally, it eliminated many oversight mechanisms.
U.S. Government Accountability Office (GAO)
The Budget and Accounting Act of 1921 established the Government Accountability Office (GAO). The GAO is often called the congressional watchdog for federal government contracts. They monitor the spending of taxpayer money and report the findings to Congress.
This includes auditing agency operations and investigating allegations involving unethical activities. The GAO also analyzes policies and rules on bid protest rulings.
Contract Disputes Act
The Contract Disputes Act (CDA) regulates litigation for government contract disputes. Congress passed the CDA in 1978. As part of the CDA, the government and the contractor can deal with the dispute at the lowest level possible.
To file a claim, you have to submit written complaints to the government’s contracting officer within six years of the incident. For claims by contractors that are worth no more than $100,000, a decision can generally happen within 60 days. Claims by contractors for more than that amount require multiple certifications.
A contractor unhappy with the decision on its claim may file an appeal within 90 days. Alternatively, filing a lawsuit in the U.S. Court of Federal Claims requires a year.
How Can a Government Contract Lawyer Help?
The United States government seeks to encourage business development. It can prioritize small disadvantaged businesses, veteran-owned businesses, and women-owned businesses. The government can also provide other business opportunities and initiatives for small business owners.
A government contract lawyer can also identify potential ways to advantage your business to become a government contractor. A lawyer will be aware of these and know how to identify things in your business that make you more appealing. If you want the government to consider you and your business, contact an experienced government contracts lawyer to help you.