Winning a contract is just the first step. Here are more things you must do to meet customer expectations and maximize the opportunity of winning a government contract.
The recent limitation imposed on the Defense Contract Audit Agency to perform audits means private sector accounting firms now have the opportunity to work more closely with federal agencies to help assess proposals, indirect rates, and business systems of qualifying government contractors.
This change has elevated the need for accountants specializing in government contracting who fully understand the criteria federal agencies use to select and retain contractors.
Compliance and efficiency are paramount to not only achieving the government’s goals, but also for contractors to maximize their own opportunities afforded by a federal contract. With that in mind, we’ve identified the top areas government contractors need to shore up to ensure their services are efficient and profitable.
1. Policies and Procedures
The first step in making sure your business is set up to successfully maintain a government contract is through compliance. Working for the government is a privilege. The government not only expects to see excellent work as a return on dollars spent, but also expects a fair and reasonable price. Government contractors are held to a higher standard because of the complexity of the compliance needed to ensure taxpayer dollars are being used appropriately.
Contracts offer an opportunity to develop ideas and efficiencies the government may not achieve or implement on its own. Your work for the federal government comes with great responsibility. Therefore, once your organization wins a contract, compliance sets in. Winning the contract is only the beginning of a commitment to a higher standard of rules and regulations.
To capitalize on the opportunity afforded by a contract win, contractors must create clear policies and procedures that will govern how their work will be managed and executed. Government agencies—and their auditors—love to see that contractors have well-established processes for accounting and timekeeping, and how they will handle modifications to the contract. There should also be policies for at-risk work, employee travel and training, and bids and proposals.
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