Key Concerns for Government Contractors

Government contracting is often a great way to win work in your field. If you provide a valuable service, there are big payoffs available if you decide to form partnerships with government agencies. However, government contracting isn’t without its challenges and concerns. There are various difficulties and complications that you need to pay attention to if you want to make the most of acting as a federal contractor. Being aware of these concerns both before and during working as a contractor will help anyone to be prepared for this sometimes uncertain and volatile path. Here are some of the top concerns for government contractors.

Accounting Issues

Accounting presents several challenges for government contractors, who need to balance their accounting methodologies with the requirements of the government and the commercial market. One of the major challenges is keeping up with the federal requirements, which often change. Contractors also need to secure approval from the Defense Contract Audit Agency (DCAA) for their accounting systems.

Another tough challenge is that government contractors need to be prepared for surprise audits at any moment. These accounting concerns and more make it tricky for contractors to fulfill their obligations and ensure their accounting systems are up to scratch.

Keeping Compliant

Compliance is a major issue for any government contractor. There are many different compliance concerns to consider, including data security. Keeping sensitive data secure is a key concern and requires contractors to follow the requirements set out by the relevant institution. Solutions like the Microsoft GCC High Cloud platform offer options for running a business that complies with government security requirements but still allows contractors to continue with commercial clients. These solutions both offer protection from cyber threats and provide the necessary tools for running an efficient business. Compliance is much easier to manage with the right help.

Competition

Government contractors often face tough competition. While the contracts may be lucrative, you need to be able to show that you’re the right contractor for the job. One of the issues faced by many is that of bid protests. After putting in the time and effort to prepare and submit a bid, it could be protested by a competing contractor. Competitors can protest based on a number of different reasons, and the protests happen frequently. It’s important for contractors to be prepared to defend themselves when this occurs to avoid the risk of losing the contract.

Unpredictability and Uncertainty

There is a lot of unpredictability and uncertainty surrounding being a government contractor. Government agencies sometimes decide to use in-house resources rather than outsource to save money, and government spending changes mean that guaranteeing work isn’t easy. Things can change quickly, and contracts can often be terminated with no notice if it’s necessary. If funding for a program runs out, it could leave a contractor with no contract and no more money coming in. Nothing is guaranteed, so it’s vital to be prepared for sudden changes.

Being a government contractor has many potential payoffs, but there are things to be concerned about too. Any contractor should know what awaits them if they’re considering bidding for government contracts.

This is a contributed post.