Federal laws are the binding factor behind any contract, irrespective of the size. The Government contracting rules and regulations dictate how to perform business with the government. There are also several laws that federal contractors should know at the start of the fiscal year 2023.
Mandatory Requirements For Federal Contracting
The Federal Government contracting spends hundreds of billions of dollars on contracts. It also lays specific basic regulatory tasks to ensure that the business can do business with the federal government legally and legitimately. The government requires its federal contractors to register their business with Dun and Bradstreet and the System for the management of awards.
Dun and Bradstreet make use of a nine-digit identifier code that helps manage the credit profile of the company. This ensures that the potential business partners and the lenders of the business can ascertain the company’s financial stability and reliability. The SAS (System for Award Management) is the central registration repository for all businesses. The SAM will mandate the business contractors to perform the following,
- Register the Data Universal Numbering System of the company.
- List the NAICS code applicable to the work that the contractor performs.
- Identify the contractor’scontractor’s bank account, and provide background information concerning the contractor.
- Complete representations and certifications as per the Federal Acquisition Regulation.
The information that is available with the SAM should be updated annually. Federal contractors should also be aware of the NAICS code that offers the government a uniform method of tracking the business’s spending, classifying the purchases, and the business budgeting and funding.
Things that Federal Contractor Required to Know Concerning Contracting
Federal contractors should necessarily know that all the contracts that are awarded by the federal government should first be approved by the contracting officer. The CO will approve federal projects only for responsible contractors. Also, the government will not enter contracts with any business that owes back taxes, has pending or current legal judgment with the government does not have a checking account, or is in the excluded parties list of the government.
Before proceeding with the government contractors, the potential contractors should ensure that they complete all required registrations and self-diagnostic tests to identify potential business hindrances.
Finding contracting opportunities:
The process of acquiring contracts from the federal government starts with identifying the relevant markets and potential customers who match the business capabilities. Concerning federal government contracting, numerous sources are available for federal contractors to identify potential opportunities. They are discussed as follows.
- GSA Schedule: The GSA is considered to be the acquisition arm of the government, as it connects the business with the federal agency that has a business need. Contracts should follow the GSA schedule closely, and to be eligible for the contract; the vendor should be in business for at least two years.
- GWACS: The federal government purchases software, hardware, and other related services through the GWACs or the Government-wide Acquisition Contracts.
- FreeBizOpps: This is the point of entry for businesses that wish to seek federal government contracting opportunities that have a value of over $25,000.
- Subcontracts: Federal contractors can get involved in federal government contracting by serving as a subcontractors for a company that has been awarded government contracts.
After completing the required registrations and finding the business opportunity, contracts should decide on entering either government contract bids or proposals. Bids focus on sealed bidding purchases and proposals involving contract awards made after negotiation.
Federal contractors should cross-check everything in the government bid or proposal before proceeding with the contracting process. They should make sure that they don’t overpromise on any proposal, focus on the technical specifications of the contract, and be prepared to render any follow-up information.