Avoid Costly Proposal Mistakes

By: Theodore Watson, Esq.: Federal Government contracts are a very lucrative business. However, learning how to acquire projects takes time, effort and investment. Proposal writing for government contracts is by no means a simple process. However, if you attempt to respond to the agency’s Request for Proposal (RFP), you will have to bring more to the table than just having a good technical writer. The reality is that the “status quo” no longer gets the win. You have to do more than the basic RFP requirements.

Agencies are now leaning towards trade-offs to justify their best value determinations. Lowest price does not necessarily get the award. As former government contracting officials and members of source selection teams, we have actually reviewed eloquent proposals and perfected efforts by technical writers – we know firsthand that only the proposals that have substance and give the government added value and what source-selection officials want to know actually win the contract. The agency wants to feel like it is getting a good deal – not just reviewing a proposal with the basic solicitation criteria.

Reasons Why Government Proposals Fail:   The first thing to consider when responding to a multi-million dollar proposal is whether you have the budget to do what it takes to win. Successful companies spend anywhere from $13K to $20K for proposal writing services for a contract valued anywhere from $1M-5M. Never just cut and paste old proposals for an upcoming project. Agencies spot templated responses from a mile away and automatically put the proposal to the bottom of the pile.

When responding to a government Request for Proposal, we have found that the following summarizes why proposal fail.

1. The response is not specific and to the point. Government proposal writing requires the bidder to articulate the key areas to the solicitation. Never try to write a book and expect the agency to understand what you are trying to say. Proposal writers must be very specific and to the point.

2. Too much focus on “we can do the work” instead of “how we are going to do the work.” When grading proposals, the government places a significant emphasis and weight on the bidder’s technical approach. You have to spell out HOW you actually perform each phase of the Statement of Work. Summarizing will not help you.

3. No emphasis on your risk management and quality assurance. One of the fatal mistakes in government contract proposal writing is that bidders miserably fail to address and highlight their risk management and quality assurance. The government is not going to award a contract worth millions and never pay attention to the risk involved.  Each proposal writer that understands government contracting must include risk management into the response to the solicitation. If you don’t, then your competition certainly will.

4. Failure to understand best value considerations. In federal contracts, price alone is not the criteria for award and neither is past performance. Sometimes, agencies will consider a price/ past performance trade-off when considering awards. However, effective proposal writing includes more than just these factors. Congress has suggested that taxpayers’ money should get the “best bang”. Since the government generally buys commercial services and products, bidding on government contracts should incorporate factors commonly used in the commercial industry. This includes warranties, discounts for volume, accelerated schedules etc. At Watson & Associates, our success stems from the ability to help you to see the big picture in federal procurement and educate the agency when writing government proposals.

5. Relying too heavily on teaming partners and subcontractors. Failure to understand that teaming rule can be the kiss of death in government proposal writing. Many companies that offer proposal writing services do not understand how to avoid this commonly-made mistake. Although FAR 9.6 allows for teaming and subcontracting, there are also limitations on subcontracting. When proposing a subcontractor or teaming partner, you have to understand the legal limitations. Failure to correctly propose your team can subject you to a bid protest based upon affiliation. Bidding on government contracts means that the prime contractor (you) must perform the required percentage of labor costs and not pass through the critical aspects of the project. This is yet another reason why our experience as bid protest and government contract attorneys adds value to our proposal writing services.

As a general rule, there are ten basic principles that will put you on the right track to success in government RFP and proposal writing

1. Always learn, learn and learn again the nature of the government’s problem. If you cannot understand and respond to the agency’s problem, you simply will end up with an eloquently written document with no substance and lacking depth. The federal government publicizes its opportunities in a series of solicitations. As an effective proposal writer, you have to read, reread and understand the solicitation.   For example, average responses to a Request for Proposal (for medical supplies) simply inject paragraphs of how committed to customer service the bidder maybe; then, the bidder simply submits its pricing and past performance. The winning proposal uses a different strategy. Instead of drowning the RFP response with ‘fluff’, the experienced proposal consultant will advise his client to first discuss the industry and problems associated with this particular industry including problems experienced by other customers – this sets the stage for letting the government know that you are ahead of the competition. You then describe how you can prevent these problems and describe what if anything you will do to minimize risk (this substantiates cost and shows additional value to the government.)

2. Never think that the government has no idea of what your service or product costs. Successful bidders understand the theory of the independent government estimate. The procurement rules require the government to establish some sort of estimate. Most agencies do their homework. However, some still use the outdated methodology that puts potential bidders at risk. Caution: The method arriving at the government estimate does not always work in your favor – the agency should conduct research in the commercial sector to see what similar products and services cost. Unfortunately, many agencies simply rely on other agency pricing to come up with the government estimate.

3. Always focus on beating your competitor. This is a mindset that swallows up inexperienced proposal writing staff. Many simply focus on responding to ‘only what the solicitation calls for’ and nothing more. At best, this line of thinking will get you within the competitive range but not win the award.

Our proposal writing consultants teach our successful clients to focus on beating the competitor while still addressing the government’s need – nothing else matters. Yes, you always have to respond to the criteria accurately as set forth in the solicitation. However, this sets the stage (and a common trap) for only the basic requirements. Be mindful that your competition is also responding to the same RFP. You have to outperform them to get the award.

As you respond to each section of the RFP, always ask yourself, “what is your adversary going to write?”  If you don’t ask this question, you will undoubtedly find out during a debriefing of notice of non-selection for the bid.

4. For successful government proposal writing, you must have a thorough understanding of the procurement rules. To say otherwise is analogous to applying for a job at a large corporation without knowing anything about the company. Many companies hire proposal writers who have no clue, or even a basic understanding of the rules involved with procurement.

For example, many government contract proposals require you to discuss your teaming partners and subcontractors. More specifically, to discuss the roles and percentages of the contract. Many companies dive into this head-on without knowing the rules and laws of teaming and subcontracting.  The result is that many companies subject themselves to losing a bid protest for violation of the NAICS standards.

A second example is failure to understand the trade-off process. The contracting officer and the agency have wide discretion when determining what is a good deal for the government. When you fail to add more best-value considerations, you typically hand more discretion for trade-off determinations. If you don’t give the agency something to consider, over and beyond price and past performance, your proposal will fail.

5. Unrealistic Proposal Pricing – Always be modest on profit. The old saying that you can price yourself out of business applies to government contracting.  As experienced proposal writing consultants, we advise our clients to stay within certain allowable percentages depending on the industry. However, a good proposal writing strategy is to substantiate your pricing proposal by explaining critical processes and the costs associated with them. Assert common industry practice and justify your prices. Never allow the government to guess at why your pricing is high or low. If you can compete with an extra low price, your proposal response should explain why your company can perform at such low prices. The solicitation may expressly state that too low of a price may indicate that you do not understand the proposal requirements. Do not give the government contracting department this luxury.

6. You must describe the ‘horsepower’ behind your company – Aka, Management Approach. This is a critical part of the proposal writing process. Successful bidders learn to how to write effective resumes specifically for federal RFPs.  Simply put, traditional resumes don’t lead to awards. The government wants in-depth information about the ‘top brass’ in your organization. Remember, technical proposals are weighted heavily when bidding on government contracts. Always talk about your key personnel, their experience and how they will participate in this government project.

7. In Government Proposal Writing never discuss your weaknesses. This is one of the most common traps in government contract proposal writing. When you see language in the solicitation that asks you to describe past problems and how you handled them – warning, tread lightly.

For example, if you missed project schedules in a previous construction project, you may simply want to use another project for past performance and discuss it. The government does not want to award a construction project to a company that has a history (even if only once) of missing deadlines.

The better proposal writing approach is to discuss potential problems in this specific project and then discuss how you intend to overcome them.

8. Never expect to get a million dollar contract for pennies. As mentioned proposal writing and development for a multi-million dollar contract is based upon a convincing RFP response. Bluntly put, a degree in English will not get you a multi-million dollar contract. You have to realistically budget for success. Although the skill of a technical writer is critical to the federal proposal writing process, there is a huge difference – experience and knowledge of the rules.

9. Secure proposal writers that understand the procurement rules and the source selection process. This is a distinguishing factor when looking to hire a proposal development outsourcing staff.

10. Learn how to pick qualified proposal writers.  The Internet is swamped with proposal writers for government contracts. However, picking the most qualified ones is the tricky part. Many shoppers typically want to know how many proposals a person has written in that specific industry; or what is their success rate.

 To be frank – proposal writers do not have to be technically experienced in your industry. There are regulated rules in the bidding process. Understand those rules, trade-off strategies and how to present your package in a convincing manner are the cornerstones of bidding on federal government contracts.

When you are looking for QUALIFIED PROPOSAL WRITER OR CONSULTANT, here are relevant points to consider:

• Level of experience in federal government contracting
• Have them describe important issues when writing about best value
• The level of experience they have in responding to government RFPs that involve teaming partners or subcontractors
• Ask what does the government need to know about a prospective bidder to set a high impression

Understand that prior win rates do not guarantee a win in this effort. Most businesses seek proposal writers based on their win rates – only to lose in this particular effort. As government contract lawyers, we also get the same question – what is your win rate? Not only is this misleading but the analysis and inference of prior win rates can be negative. The question to ask is how would you guide my company into possibly winning this project?

Each RFP is unique and the focus must be specific to the proposal at hand – how are you going to attack the solicitation and submit a winning proposal on THIS project?

• Point – agencies look for different things in their solicitations
• Point – Not all agencies follow the FAR (See FDIC)
• Point – Rating criteria is different in virtually all RFPs
• Point – Lowest price (alone) is not the statutory requirement for award in federal contracts

High- Caliber Advice Sets You Apart from Your Competitors

As you venture into the market for a government contract proposal writing consultant, you are investing in someone that can convince the government that you are the best candidate for award. This is a skill that goes over and beyond proofreading and editing.  Proposal writers must understand and have experience in the actual rules of engagement and the pitfalls associated with losing an award on a bid protest. This foresight sets you apart from your competitors and automatically increases your caliber and probabilities of being successful.

Contact Us

If you are in the market for in-depth advice and guidance in federal government contract proposal writing, contact  Watson & Associates, LLC today at 1.866.601.5518 for a free initial consultation.

Avoiding Government Bid Protests

By Theodore Watson, Esq. A bid protest can be filed against the government in opposition to a contract solicitation, award (actual or anticipated), or other action where the protestor has an economic interest.

There are general four forums where you can file a protest: the agency itself, GAO, the US Court of Federal Claims, and the Small Business Administration (Size Standard Protest).

As the offeror to a government proposal, there are certain things you can do to minimize the risk of losing the award to a bid protest. For example, a bidder can get professional guidance on the correct use of teaming agreements and subcontracts; be aware of the limitation on subcontracting – never subcontractor away the critical parts of the contract; ensure that your technical proposal meets and exceeds the basic requirements of the proposal; ensure that ORCA representations are accurate and truthful; do not engage in sideline discussions with the contracting officer or anyone that is part of source selection.

Applying Bid Protest Analysis to Proposal Writing

Bidding on a government contract requires more than just responding to the RFP. Avoiding a bid protest should be part of your analysis when submitting a bid to the federal government. The last thing a bidder wants is to win the award and then lose it just as quickly in a bid protest.

When the stakes are high, successful bidders and proposal writers typically have an attorney become part of their team for legal oversight and to look at the proposal with an eye towards a possible bid protest. Some common fertile areas include:

• Utilizing teaming agreements with small businesses
• Consideration of using the incumbent as a subcontractor
• Failure to use a teaming partner when you have little past performance
• 8a Firms using large businesses as subcontractors or teaming partners

Bid Protest and Teaming Agreements with Small Businesses

There is no question that government agencies take small business set asides seriously. In fact a substantial amount of government opportunities are set aside for small businesses under FAR Part 19.

This tends to cause friction because large contractors are excluded from bidding. As a result, they seek out small businesses to serve as teaming partners. A bid protest is imminent when a small business unduly relies on a larger contractor to perform the contract. For example:

A large contractor seeks out an 8a firm to act as a prime on a new bid. However, the large business executes a separate agreement that essentially gives the large business control over the project.

A SBA bid protest may succeed if the protestor can show that the 8a firm could not complete the project without the help of the large business. A more critical issue occurs when the 8a prime hires the large contractor’s personnel to perform the critical parts of the contract.

Bid Protest Alleging Technical Deficiencies

Having no past performance can become problematic in a bid protest. A successful protestor may challenge the technical capability of the awardee. Although the agency has wide latitude to accept certain risks and trade-offs, the reality is that sometimes that government contracting agency forgets the criteria as set forth in the solicitation and relies solely on the proposal writing skills of the offeror.

A skilled GAO bid protest attorney may prevail on a bid protest because of the costly mistake. To overcome this fatal result, businesses that lack relevant past performance may want to consider using a reputable and experienced teaming partner or subcontractor.

The Federal Acquisition Regulations allow the contracting officer to consider a subcontractors past performance. However, you must still avoid the traps discussed above.

As you respond to a government RFP, you should seriously consider having federal procurement attorney review the proposal for technical acceptability and bid protest avoidance. As mentioned above, if you are hiring a large subcontractor, you must make all efforts to discuss the roles played and articulate that the small (8a) prime is responsible for the key components of the bid if awarded – go into detail.

For additional information or help, contact the bid protest attorneys at Watson & Associates, LLC at 720.941.7200 or Toll Free at 1-866-601-5518.

8a Terminations

Watson & Associates are government contract attorneys that have a unique understanding of the SBA 8a Program. Our lawyers assist small business across the country from the early stages of termination proceedings all the way to appeal. Our services include:

• Responding to SBA letters of intent to terminate
• Reconsiderations of termination
• Preserving your rights on the record for appeal (very important)
• Appeals for 8a terminations

We also help you to:

• Respond with legal authority to support your position
• Provide appropriate documentation to support your position
• Address excessive withdrawals
• Dispute allegations of improper control
• Overcome issues in your participation agreement
• Appeal SBA termination decisions

Many government contractors have taken advantage of the SBA 8a Business Development Program due to the ability for sole source awards and other benefits. However, there is an increase in early graduation and terminations from the program. Understanding the process and how to reply to the SBA is key to your survival in the 8a Program.

SBA has Discretion to Terminate a Participant

The SBA, at its own discretion, can recommend a small business for 8a termination for various reasons. However, its actions are not exempt for checks and balances. Small businesses sometimes are surprised at such a recommendation. However, you simply have to deal with it or risk guaranteed termination. This is where the help of an experienced 8a termination attorney can be of benefit.

Proper Early Response is Critical

When the SBA sends you an initial termination recommendation letter, you must exercise great caution in how you respond. Your response MUST be timely and sufficient. Of importance is that the SBA is not required to keep asking you for information. Failure to respond within the 30 days can be itself a reason for actual termination. Although you might have a valid excuse, chances are that you will not prevail on appeal.

Reasons for the SBA 8a termination 

(a) SBA may terminate the participation of a concern in the 8(a) BD program prior to the expiration of the concern’s Program Term for good cause. Examples of good cause include, but are not limited to, the following:

(1) Submission of false information in the concern’s 8(a) BD application, regardless of whether correct information would have caused the concern to be denied admission to the program, and regardless of whether correct information was given to SBA in accompanying documents or by other means.

(2) Failure by the concern to maintain its eligibility for program participation.

(3) Failure by the concern for any reason, including the death of an individual upon whom eligibility was based, to maintain ownership, full-time day-to-day management, and control by disadvantaged individuals.

(4) Failure by the concern to obtain prior written approval from SBA for any changes in ownership or business structure, management or control pursuant to §§124.105 and 124.106.

(5) Failure by the concern to disclose to SBA the extent to which non-disadvantaged persons or firms participate in the management of the Participant business concern.

(6) Failure by the concern or one or more of the concern’s principals to maintain good character.

(7) A pattern of failure to make required submissions or responses to SBA in a timely manner, including a failure to provide required financial statements, requested tax returns, reports, updated business plans, information requested by SBA’s Office of Inspector General, or other requested information or data within 30 days of the date of request.

(8) Cessation of business operations by the concern.

(9) Failure by the concern to pursue competitive and commercial business in accordance with its business plan, or failure in other ways to make reasonable efforts to develop and achieve competitive viability.

(10) A pattern of inadequate performance by the concern of awarded section 8(a) contracts.

(11) Failure by the concern to pay or repay significant financial obligations owed to the Federal Government.

(12) Failure by the concern to obtain and keep current any and all required permits, licenses, and charters, including suspension or revocation of any professional license required to operate the business.

(13) Excessive withdrawals, including transfers of funds or other business assets, from the concern for the personal benefit of any of its owners or any person or entity affiliated with the owners that hinder the development of the concern ( see §124.112(d).

(14) Unauthorized use of SBA direct or guaranteed loan proceeds or violation of an SBA loan agreement.

(15) Submission by or on behalf of a Participant of false information to SBA, including false certification of compliance with non-8(a) business activity targets under §124.507 or failure to report changes that adversely affect the program eligibility of an applicant or program participant under §124.204 and §124.112, where responsible officials of the 8(a) BD Participant knew or should have known the submission to be false.

The SBA 8a Termination Letter

If you receive notice of SBA recommendation for an 8a termination or for early graduation, you must act quickly and concisely. You must respond within 30 days of receipt of the letter.

A key aspect of the 30-day response is that you must respond with a thorough explanation to support your position. In addition, you must support your position with enclosed documentation. A simple and unsupported explanation will not suffice.

To protect your rights you should consider:

• Consider retaining an attorney
• Ensure that you respond with a detailed response (short letters will not suffice)
• Provide as much documentation to support your response
• Provide copies of checks, tax records, letters from your CPA (if applicable)
• You can also request reconsideration in addition to the above points

If you fail to provide a detailed and supported response, you can lose your 8a termination appeal very easily. This can result in actual termination. Alternatively, the SBA has an implied duty to act reasonably. The congressional intent of the SBA is to assist and help small businesses to succeed and not engage in arbitrary and capricious decisions.

In a perfect world the SBA should request additional information if your response to the termination letter lacks information. However, the case law suggest otherwise.

The bottom line is to “get it right the first time.” Consult with an experienced 8a termination lawyer to protect your rights.

Legal Authority is Key to an 8a Termination Challenge

The SBA does have the ability to make a ‘business judgment’ decision in the best interest of the public. It has a lot of latitude to take adverse actions. It is important to know that the standard on appeal is not to substitute the decision. Instead, an appellate court is charged to decide only if the SBA abused its discretion or acted contrary to law. The benefit of having experienced counsel cannot be overemphasized.

The 8a Termination Process

After you respond to the 30-day recommendation letter, the SBA may choose to move forward with its recommendation to Washington D.C.  At the headquarters level, a final agency decision will be in the form of a termination letter from Washington D.C.

After receipt, you then can appeal the decision. Time is of the essence.  Many businesses take on this complex task on their own only to find out that there also is a legal analysis that could save the day. Failure to strengthen your appeal with legal analysis can be disastrous.

If you are subject to early graduation or actual 8a termination from the SBA 8a certification program, seek help from a government contract law attorney quickly.

For more information, contact Watson & Associates, LLC at 720.941.7200 or Toll Free at 1-866-601-5518 for immediate assistance.

Position Your Business to Get Federal Government Contracts

 By: Theodore Watson,

Government Contract Attorney & Consultant

I have seen many articles suggesting that getting government contracts is easy. See for example “how to get government contracts the easy way.” The truth is that government contract award takes some work and is probable.

Make no mistake about it; nothing is “easy” about federal contracting. You must plan effectively and get expert help. Large contractors are seeing a slight decline in federal contracts. However, they are currently wondering why.

The answer is two- fold:

• Most large contractors can afford to pay a staff of Request for Proposals (RFP) writers to crank out canned responses from RFP writing programs. The government is getting smarter and is looking for better value and more competitive response. Do large contractors understand how to accomplish this?
• Large businesses do not create genuine relationships with small businesses. Many times, a contractor will normally wait until an opportunity is posted, then scramble to find a small teaming partner or subcontractor. Again, agencies are becoming smarter at this and tend to shy away from large businesses that try to ‘pull a fast one.’

Getting Federal Contracts; How to Start on the Right Path

Government Contracting is a special ‘animal’ that requires study and dedication. The only legal requirement for how to get federal contracts is to be registered in the Central Contractor registration website (CCR). So many companies automatically start the road to the government in the same fashion as they would market in the commercial sector. This not only incurs unnecessary costs but at the end of the day, the probability of award does not increase.

• Just like any business venture, you must know the market before you start on a wild goose chase
• You have to know what agency has bought, and will be buying, your service or product
• Only after acquiring the above information has your path to success began

Federal Small Business Goals

Federal small business goals do not mandate an award to your company. As compared to state and county contracts, the Congress has tasked DOD to reach certain small business goals when awarding government contracts. For example, agencies have a 23% goal for contract awards to just small businesses. The following categories also have goals:

• Service Disabled Veteran-Owned Small Businesses (SDVOSB)
• Small Disadvantage Business (SDB)
• HUBZOne ( Historically Underutilized Business Zone
• Veteran-Owned
• Woman Owned

However, depending on who is speaking, there is a big misunderstanding of goals versus law. The government very seldom meets certain goal categories (namely HUBZOne and Service Disabled Veteran Companies.) Does this mean that the government has broken the law? Of course not!

The point here is that never want to assume that simply because your business has a certain status that you will get government contracts. As mentioned before, the key to  how to get federal contracts contracts is:

• Knowing the market and who are your targeted customers
• Building relationships within the agency

Positioning Yourself to Get Government Contracts

You must align yourself with the right companies and be able to solve the government’s problem. So many contractors (large and small) simply think that if they have the end user ‘in their pocket,’ that contracts will just flow to them. Realistically, this sort of thing does in fact happen.

However, the successful contractors follow a different road map. After market research is accomplished, you should accomplish the following things:

• If you are small business, then find a reputable teaming partner for any potential contracts
• You must identify any potential problem the agency has
• Develop your marketing materials to communicate a solution
• If you are selling a product, develop you marketing materials or presentations in a way that distinguishes your product AND how it will benefit the agency

The government wants to know two main things:

• Can you solve its problem
• Can you solve the problem with minimal risk and at a fair and reasonable price

As government contract consultants, we frequently get calls from businesses that expect to acquire a federal contract in 30 days. This is not only unrealistic but it tells me that contractors (large and small) really need more training on how to get government contracts. There are no get-rich-quick schemes in federal contracting.

You Must Know How to Write Effective Government Responses to RFPs

As a government contractor, you will more than likely have to bid for a federal contract. Opportunities are posted on www.fbo.gov. The agency will post its requirements and solicit responses. You must get up to speed on how to write effective and competitive proposals. Remember, the government wants to know whether or not you can solve its problem, and can you solve it with minimal risks and at a fair and reasonable price. This a critical part of leraning how to get federal government contracts. Most advocates miss this part of their advice simply because you have to effectively understand more than just registration and where to find the upcoming contracts. Proposal writing is even an uphill battle for current contractors. You have to learn this aspect of the procurement game or get someone on board that can advise you.

Learn How to Communicate Your Past Performance to the Government

Learning how to get government contracts means telling the agency who you are and what you’ve done. That’s all that matters. The government is not moved by high-branded names as may be the case in the commercial sector.

Many contractors incorrectly believe that if they have performed no government contracts, then their chances of getting an award in minimal. This is far from the truth. The problem is that you must learn how to communicate your past commercial experience and why it is relevant to a particular solicitation. Keep in the mind the following factors:

• The law requires the agency to give you at least a neutral rating if you have absolutely NO past performance
• Past performance must within the past 3 years AND relevant
• Remember that the government purchases commercial services and products

Our government contract consultants find common mistakes when a business bids on a federal contract. They include:

• Companies cannot write a proposal that separates them from the competition
• They cannot effectively tell the government about its problem and how the contractors knowledge and experience can solve the problem
• Many responses to solicitations attempt to capture unreasonable profits. Thus, the contractor looses the bid

Although the government is the largest customer for commercial supplies and services, you should not look at the agency as a “cash cow.” Agency’s typically already have a government estimate in place before the solicitation hits the street. With that said, the government often tends to have unrealistic estimates. This is a result on terrible market research habits.

The burden is up to you to communicate in your proposal that you have done your homework and that your prices are fair and reasonable when compared to the commercial market.

Getting Government Contracts on GSA Schedules

GSA is a quasi -government agency that creates a simple procurement mechanism for the agency to buy commercial services and products. However, getting on a GSA schedule is only but one way to position you to get government contracts. Successful government contractors also scout the market to see whether the agency does in fact use the GSA schedule to purchase their particular service or product. Anything else is guess work! If approached correctly, you can get additional revenues by applying to get on schedule.

Look for Subcontracting Opportunities in in Getting Government Contracts

Another way to get government contract dollars is to seek out subcontracting opportunities. The Federal Acquisition Regulation (FAR) requires that large businesses that are awarded government projects over $500,000 develop and solicit subcontracting opportunities to small businesses. This includes, HUBZOne, Service Disabled Veteran-Owned, Woman owned and Small Disadvantaged Business entities.

However, unless approached correctly, you may run into some problems such as:

• Large businesses giving the canned approach – “we don’t have any opportunities
• Your are told that “we have our own preferred subcontractors
• Your are told “there are no subcontracting opportunities

There ways to deal with these approaches. It is well know across the country that the government does not aggressively oversee large business subcontracting plans. As federal contracting consultants and former government contracting executives, we know this to be a reality. 

Large Business Success

As a large federal contractor, there are always ways to improve your current strategy in getting government contracts. If you are a new contractor, you can invest in a well-versed and experienced government contract consultant on your team. Your focus should include:

• How to develop relationships with small businesses
• Learn how to better market your company
• Learn the best approach to events to get the best bang for your buck
• How to write more competitive responses to RFP’s 

Small Business Success

As a small business, you must develop a plan of action that sets you on the right path to success. You should set aside a budget to get professional help on your team. If you are new to government contracting, getting the help you need can bring returns and improve your bottom line – more revenue. You must focus on:

• Market Research
• Developing Relationships with agencies
• Knowing the federal procurement rules 

Summary

The government is the largest customer of commercial services and products. You learn how to effectively pursue the government market by getting experienced help. If you retain a consultant, ensure that they understand both the federal procurement rules and act on solid market data. Anything else is guesswork.  Both large and small contractors are experiencing difficulty in getting government contractors. There is a reason why.

For more information or additional help, call Theodore Watson at 720.941.7200 or 1-866-601-5518.

Learn How To Comply With SBA 8a Joint Venture Agreements

By: Theodore Watson, Attorney and Consultant

Once you have fulfilled the SBA certification requirements  and gone through the 8a application process, most small businesses look to adopt joint venture agreements with other small or large businesses. Special care must be taken before you proceed.

The Small Business Administration (SBA) 8a Program allows small business to form a joint venture (JV) with other small companies. This is allowable when the 8a cannot complete the federal contract by itself. The guidelines for operating under a joint venture should not be overlooked. When relationships go sour, the 8a company should be concerned about such problems as termination (if it cannot finish the project).

The SBA must approve the Joint Venture (and the Joint Venture Agreement). If the project is for a total small business set aside the SBA does not have to approve the JV simply because an 8a company is involved. Furthermore, any amendments to the agreement must also be approved by the SBA. However, it is wise to always inform the SBA about the joint venture and see if that particular regional office wishes to approve the joint venture agreement. Under the 8a participation agreement, you always have to inform the SBA about all relationships that could possibly impact you in the 8a program.

Key points for approval include:

• Substantial benefit to the 8a company
• The 8a company must manage and be responsible for the contract
• The agreement must be fair and equitable
• For a size standard based upon employees, the procurement must exceed $10 Million
• For size standards based upon revenues, the project must be over one half the size standard amount

Good Business Judgment When Entering into a Joint Venture Contract

Choosing a JV partner needs careful consideration and due diligence. Given the tough economy, government contracts are becoming more competitive. As a result small businesses are seeking creative ways to acquire federal projects. Large businesses are also seeking out small businesses as joint venture partners. If you choose to pursue a JV partner, you should consider the following.

• Ensure that you have someone on your team that understands the ins and outs of JVs
• Have a government contract attorney review or draft your joint venture agreement
• Thoroughly perform your due diligence on the potential JV partner (past performance, financial strength etc.)
• Ensure that the responsibility of each joint venture partner is clearly spelled out
• Ensure that you have a well thought out quality assurance plan to minimize risk of nonperformance

If you are not familiar with this aspect of federal procurement, you should consider hiring an experienced government contract consultant or government contract lawyer.

8a Joint Venture Approval From the SBA

The SBA must only approve a JV agreement if there is an 8a set aside. Oftentimes contractors wait until the government advertises a contract to then find a JV partner. This sometimes is too late and the SBA has no responsibility to ‘speed things up’ for you. This creates problems for proposal submission. You simply cannot get around SBA approval for 8a companies. However, the SBA is ONLY required to approve agreements for 8a set asides. The Office of Hearing and Appeals made this clear in Size Appeal Diversified Global Partners JV LLC, SBA No. SIZ-4967 (2008). The following are some of the key points for JV approval:

• SBA must approve a joint venture agreement prior to the award of an 8(a) contract on behalf of the joint venture
• Contract execution. Where SBA has approved a joint venture, the procuring activity will execute an 8(a) contract in the name of the joint venture entity
• Amendments to joint venture agreement. All amendments to the joint venture agreement must be approved by SBA
• Inspection of records. SBA may inspect the records of the joint venture without notice at any time deemed necessary

In one case OHA ruled that neither SBA area offices nor OHA have authority to review mentor/protégé eligibility issues, including mentor/protégé and joint venture agreements. The Court analyzed a recent decision, Size Appeal of White Hawk/Todd, A Joint Venture, SBA No. SIZ-4950 (2008),which held that only SBA’s Office of Business Development has authority to review a mentor-protégé agreement. Thus, concerns regarding whether a mentor/protégé relationship fully complies with the applicable regulations should be dismissed if raised in a size protest to an SBA area office or on appeal to OHA.

Contents of the Joint Venture Agreement

It is common for contractors to copy JV templates from the Internet, rather than having a government contract attorney to draft a solid document. Choosing such shortcuts can be costly in the end. You must remember that SBA templates may contain the minimum requirements for SBA approval. This has nothing to do with issues that may arise during litigation of the JV relationship. Every joint venture agreement to perform an 8(a) contract, including those between mentors and protégés authorized by Sec. 124.520, must contain a provision:

Setting forth the purpose of the joint venture

Designating an 8(a) Participant as the managing venturer of the joint venture, and an employee of the managing venturer as the project manager responsible for performance of the 8(a) contract

Stating that not less than 51 percent of the net profits earned by the joint venture will be distributed to the 8(a) Participant(s)

Providing for the establishment and administration of a special bank account in the name of the joint venture. This account must require the signature of all parties to the joint venture or designees for withdrawal purposes. All payments due on joint venture contract for performance on an 8(a) contract will be deposited in the special account

• all expenses incurred under the contract will be paid from the account as well
• Itemizing all major equipment, facilities, and other resources to be furnished by each party to the joint venture, with a detailed schedule of cost or value of each
• Specifying the responsibilities of the parties with regard to contract performance, source of labor and negotiation of the 8(a) contract
• Obligating all parties to the joint venture to ensure performance of the 8(a) contract and to complete performance despite the withdrawal of any member
• Designating that accounting and other administrative records relating to the joint venture be kept in the office of the managing venturer, unless approval to keep them elsewhere is granted by the District Director or his/her designee upon written request
• Requiring that the final original records be retained by the managing venturer upon completion of the contract
• Stating that quarterly financial statements showing cumulative contract receipts and expenditures (including salaries of the joint venture’s principals) must be submitted to SBA not later than 45 days after each operating quarter of the joint venture AND
• Stating that a project-end profit and loss statement, including a statement of final profit distribution, must be submitted to SBA no later than 90 days after completion of the contract

Joint Venture Performance

For any SBA 8a Joint Venture Contract, including those between mentors and protégés authorized by 13 C.F.R. Sec. 124.520,  the joint venture must perform the applicable percentage of work required by Sec. 124.510, and the 8(a) partner(s) to the joint venture must perform a significant portion of the contract. Your 8a certification requirements strictly adopt this policy.

Problems During Contract Performance

Oftentimes, the joint venture partners will encounter disputes during the performance period.  The managing partner must be very cautious in this scenario because he controls the venture. Sound decisions must be made simply because liability may arise for nonperformance. Common disputes can include:

• The non-managing joint venture partner wants to control the project
• The partners do not agree upon how a specific part of the contract should be performed
• One of the partners wants to amend the terms of the joint venture agreement

The key to resolving disputes in a joint venture relationship is to know who is in control. The 8a firm must be in control of the joint venture relationship. Many companies believe that after the initial agreement is approved, then it is not important what happens afterwards. Nothing can be far from the truth. This is where having an experienced government contract attorney can help. He or she should be able to advise you when problems of control arise.

Arbitration Clauses

A highly complex situation arises when arbitration clauses are involved. It is important that the arbitration clause in a joint venture agreement is intended to resolve disputes during contract performance.

For example, an arbitrator may step in to assign duties and responsibilities with a focus on getting the contract performed while the dispute is settled.

However, the arbitrator does not have jurisdiction to amend the joint venture agreement. Under 13 C.F.R 124.513 (g), ONLY the SBA can approve an amendment to a joint venture agreement. The legal analysis here is that this section provides exclusive jurisdiction to the SBA.

Therefore, any arbitrator decisions that amends the terms and conditions of the original joint venture agreement must be struck as void. A decision that allows the non 8a company to make controlling decisions arguable changes the terms and conditions of the original agreement.

Government contract attorneys should be aware of this subtle but concise rule of law. It is important to note that the SBA approved Joint Venture Agreement contemplates that partnerships may dissolve or end for whatever reason. For example, the rules address wing up of the JV and what should happen to accounting information etc. If another authority besides the SBA attempts to amend or change the rules, an argument for lack of subject matter jurisdiction should arise. 

Avoid Fraud

As previously mentioned, the 8a firm must be in control and derive a substantial benefit from the contract. In the event that either party (or both) submits a proposed agreement  and with the intent of later  allowing the non-8a firm to control  the contract, then each may be subject to fraud claims from the government. This is particularly common when large businesses enter into a JV agreement with a small business. The most prevalent industry is in construction where the large business brings bonding to the table.

The congressional intent as set forth in the law is to create “substantial benefit to the 8a certified firm, and to have the 8a company control the project.

If you seek a government contract lawyer to help with JV agreements or to review or draft your joint venture agreement, contact     Watson & Associates, LLC at 720.941.7200.

By: Theodore P. Watson, Government Contract Attorney and Consultant

After 911, access to the federal government has become very limited. Contractors now have to create new and innovative ways to market to the agency to sell their services and products. As many successful contractors know, building relationships with the government is one of the critical aspects of marketing to the government.

• There are over 80,000 agencies
• There is no bigger business than selling to government
• Marketing to the government takes time and is definitely not a simple task

There are no short cuts to acquiring government contracts. Many companies incorrectly believe that marketing to the federal government is done in the same manner as in the commercial sector. As a result, they spend thousands of dollars hiring employees with inflated resumes, going to events that don’t get results or simply not spending to the time to develop relationships with the agency decision-maker.

Analysis of Marketing to the Federal Government

Most companies will start the process in federal procurement as a subcontractor. This is especially true with construction contracts. However, given the push for more awards to small businesses, you can be successful with the right approach. For example, teaming arrangements.

As a product vendor, you should simultaneously start to acquire leverage in the commercial market. The government wants to know your performance in the commercial sector in order to weigh its risk when you first come to the federal marketplace.

• Building a reputation in the commercial sector is critical to your performance ratings in federal contracts
• Having your marketing staff keep statistical data on the success of your commercial efforts. This is an important piece when writing responses to solicitations and RFPs.

Know the Landscape of the Federal Market. Many companies quickly jump into the government contracting arena without knowing the ‘turf’. When our marking consultants assist clients with marketing to the federal government, we first gather data on the agency buying habits. This is critical.

• Understanding the government’s buying habits is key to a successful marketing campaign
• There are over 80,000 agencies. Scouting the market narrows your focus
• You must know which agency buys your product or service
• Knowing the market saves money and effort
• You must also know your competitors and who is also selling to the agency
• Market research and target specific agencies
• You should target emerging contractual vehicles ( service disabled, 8a, HUBZone and GSA)

Developing and Proving the Caliber of Your Service or Product is Critical. As a former government contracting official, I’ve seen many businesses present themselves both on paper and by in-person briefings. The results were sometimes damaging to the contractor.

Marketing to the government takes effort, skill and patience. You cannot simply think that procurement personnel are sold by sending them a one-page document that has your company name and address on it.  Nor does a simple brochure that tells them your product or service is the best thing on the earth sell them either.

• You must know the agency’s problem and be able to let them know you can fix it
• Quick delivery and turnaround time is an essential element of selling a product
• The government demands quality and innovative ways to solve problems
• Your reputation is also critical when marketing to the federal government

Marketing to the government is not easy but the return can make it worth your while. As mentioned earlier, there are no get-rich schemes to acquiring government contracts. As federal marketing consultants, our firm focuses on developing solid marketing materials that talk about:

• Solving the agency’s problems
• Quality and reputation
• Cost-effectiveness
• Additional value concerns to the government
• Who you are and what you have done
• Showing that you know Industry and any future developments

Marketing materials that contain anything else will not be taken seriously. The government simply wants to know “what do you bring to the table and how can you solve its problems?”

Using Corporate Ad Agencies Does Not Help

Using a corporate ad agency to market to the federal government does not help. As mentioned before, building relationships with the agency calls for a different skill set that normally required in the commercial market place. Although one or two of the marketing companies may have a track record, the others tend not to grasp the procurement rules and regulations.

GSA Schedules – Good or Bad?

As government contract attorneys and marketing consultants, we often advise our clients to never fall for the old saying “get a GSA schedule and just wait for the phones to ring.” Marketing to the government just doesn’t magically get you millions. About 3-5% of GSA contractors control most of government dollars.

To successfully capture dollars on a GSA schedule you must also:

• Understand whether the government buys your service or product on GSA schedule
• The geography of what agencies and where are your targeted market agencies
• Remember that getting on GSA schedule should only be part of your entire marketing strategy and not the end

Should Branding and name recognition be the forefront when marketing to the government? Shockingly, the answer is a big “NO.” Except for computers, where DELL controls the government market, the government wants to know the bottom line; can you solve their problem AND what do you bring to the table?

• Commercial branding  does not guaranty you government contracts
• You simply should not market to the government in the same fashion as in the commercial sector – this is the biggest and most expensive mistake made by new federal contractors.

Trade Shows

Many small companies cannot afford to attend trade shows. The question is whether they are really effective when marketing to the federal government. A few points should be made:

• Tradeshows eat up big bucks
• Don’t expect miracles to happen at an event
• You must strategically select which trade shows to attend
• When picked carefully, trade shows bring great success for government contract marketing
• Prepare you materials to send a particular message (You can solve an agency problem or to demonstrate the benefit of your product)
• Go to smaller trade shows where decision makers tend to be
• Segment the market and focus and sizing up opportunities

Hiring Your Marketing Team

Many government contractors seek to hire former government personnel in hope of landing big contracts. Yes, it looks good on paper but hiring the wrong person can also be disastrous. Watson & Associates, LLC have former contracting offices and small business personnel on staff. However, our consulting strategy is based on a more focused approach instead of hope and guess work.

• Never believe that the only way to market is to hire a person in Washington, D.C. This guarantees you nothing.
• Learning  the market and learning to build relationships can be done from anywhere in the country
• Watch for spam e-mails professing to get government contracts

Searching for capable teaming partners can be very effective

As government contract and marketing consultants, we often advise our clients to seek out capable teaming partners. It is no big secret that small companies lose out on opportunities that may be too large for one company to handle. Thus, the only capable contractor would be the larger businesses.

In fact, larger businesses are seeking teaming arrangements with select small business such as service disabled veterans and 8a companies.

• Get advice on selecting a teaming partner
• You can now ,market you teaming partner’s capability along with your own

Key Marketing Tips

• Trade Shows (when carefully selected) can bring big dividends
• Following up on contacts from trade shows is the biggest mistake made
• Remember that building relationships is the key to success
• People ( the government is comprised of people) like to buy from people they meet face to face
• Marketing to the government is based on problem solving and desire to serve
• Do not hire commercial marketing companies that guaranty results
• If you are going to retain a government contract consultant, then ensure that they understand the rules and the market
• Government contract marketing must focus on how the government sees your company ; whether you can solve its problems; who you are and what have you done
• Get the right marketing consultants on board
• Know how to demonstrate your product or service; highlight the benefits or value to the government
• Your marketing strategy must be consistent

If you are seeking competent government contract consultants, feel free to contact Watson & Associates, LLC at 720.941.7200

Avoid Mistakes in Government Contract Bid Proposals

By: Theodore P. Watson, Esq

It is no secret that government contracting is a lucrative business venture. Given the current state of the economy, many small and medium sized businesses are now moving to federal contracts to get increased revenues. The commercial economy is definitely a tough market. Therefore, the ability to survive dramatically increases daily.

As more contractors turn to bidding on government contracts, they not only find a series of complex rules and regulations, but they also find that it is totally different than commercial bidding. Business lack the know-how and internal experience for effective proposal writing. As a result, they simply take chances in hope of landing more projects. What is the result? Very few awards.

When bidding on government contracts,RFPs and solicitations, you must first know the ground rules to play the game. Anything else is gambling and guess work.  Unlike the commercial sector, the government procurement process creates virtually different challenges. So what really is different? Why are businesses moving to the government market place if bidding is just as difficult?

The following points are indisputable:

• The federal government (DOD) is the largest customer of commercial supplies and services.
• Bidding on government contracts can potential guaranty you income for at least one year (many bid awards are generally for 1 base year and 3 option years).
• Registration and qualification standards to do business with the government are very easy
• State contract awards oftentimes are lower in amounts than federal contracts
• Small business programs in the federal market are taken more seriously that state contracting

The difference between government and commercial proposals is substantial

For example:

• Federal procurement is governed and regulated by regulations and statutes
• A contractor does have some legal recourse in federal contracting as compared to the commercial sector
• Subcontractors in government contracting have more of a right to subcontracting opportunities than in the commercial and state sectors

Are attorneys necessary in federal contracting?

This depends on your idea of smart business. As mentioned before, federal contracting, although very lucrative, is regulated by a myriad of regulations. When bidding on government contracts, you must be familiar with all of the FAR clauses and complex regulations that bind you. Even if you are fortunate to land a government contract, the risk of noncompliance is high. The consequences are also stiff.

When bids are award, the contract also contains numerous clauses for which you have the obligation to know and comply. Most successful federal contractors have government contract attorneys either on staff or on retainer.  This can be a wise decision when certain issues arise.

For example:

• Bid protests
• Allegations of fraud
• Ethical matters
• Contract termination
• 8a or HUBZone matters
• Teaming agreements or Joint venture matters

The penalty for failure on a government project can immensely cripple your business. The decision whether or not to retain outside attorneys or not is simply a decision that you must make.

How to Position Yourself to Take on Larger Government Contract Proposals

Many contractors across the country grapple with this question. There are concerns about bundling which the SBA is supposed to be monitoring. Small businesses should seriously assess their strength and capabilities when bidding on government proposals. To simply hope that the agency does not recognize weak technical capability and lack of resources is simply realistic. When contracts are too large for one business to handle, the best approach to bidding on proposals include:

• Consider entering into a teaming agreement with a reputable firm
• Joint Ventures
• Subcontracting to a larger firm that has the requisite past performance
• At last resort, seek the larger contract awards and pursue subcontracting opportunities

Our staff of government contract lawyers is frequently called upon to draft teaming agreements for businesses that are looking to join forces for the larger projects. There are some very important rules that will apply to such teaming arrangements and joint ventures.

These include:

• If you are a small business, ensure that you are performing at least 51% of labor costs (there are some exceptions to this rule depending upon you NAICs code)
• Ensure that the awardee (8a, HUBZone or Service Disabled Veteran Owned Business) does the critical parts of the project
• Do not rely on a large subcontractor’s employees
• The smaller prime must have overall responsibility for the project
• The small business (prime) must demonstrate that it has marketed and pursued the contract

When you are bidding on government contracts, you must be familiar with the various teaming rules. Failure to abide by these basic regulations can cost you the bid award in a protest to the SBA.

Mistakes in Proposal Writing & Bidding Process

When contractors bid on government proposals, they often scan the solicitation and statement of work to quickly decide that “we can do this work.” In addition to reaching this conclusion, they should also seriously question HOW they will do it. The agency will certainly assess it.

When the RFP is announced on FBO you must read entire solicitation very carefully. The agencies are generally very specific about that they want to see in your bid. Many federal contractors also know that you must provide exactly what the government wants in the solicitation.

This is true. However, successful competitors know that you must just do more than the minimum to prevail in the award.  Bidding with the bare bones of the solicitation may only get you into the competitive range (final pick for consideration).

Notice that the competitive range has the keyword “competitive” in the phrase! This is a mistake that ‘flies’ over most bidders for a government contract.

• You must add competition and value when bidding on government contracts
• Do not be afraid to use commercial past performance in your response
• Don’t forget to also add the past performance of you subcontractors
• Focus on beating your competitor by adding value to the solicitation requirements

As government contract consultants, we rarely just write an RFP that merely includes the bare bones requirements because the probability of you winning the contract is greatly minimized.

The bottom line is that you must faithfully read the RFP, think about how you can compete against your competitor and add value for the government. For additional help, contact our office at 720.941.7200

Understanding Your Rights Under the FAR Default Clauses

The right of the federal government to terminate a federal government contract for default lies within the Federal Acquisition Regulations (the “F.A.R.”) which mandates that nearly all federal government contracts include a Default clause. See Adrian L. Bastianelli III et al., Federal Government Construction Contracts 337 (2003). Default clauses can be traced as far back as the Civil War, and as government contracting has evolved over time so has the language typically found in a Default clause. Id.

While the precise contractual language found in a Default clause is dependent on the type of government contract, more often than not, the federal government’s right to terminate a federal government contract for default is exercised due to a contractor’s failure to complete the contract by the mandated contract completion date or failure to make satisfactory progress gauged by percentage of contract completion. Id. at 344-46. For example, F.A.R. 52.249-9, which governs Default clauses for fixed-price research and development contracts, states that the federal government may terminate the contract for defaultif the contractor fails to “(i) [p]erform the work under the contract within the time specified in [the] contract or any extension; (ii) [p]rosecutethe work so as to endanger performance of [the] contract…; or (iii) [p]erform any of the other provisions of [the] contract….” F.A.R. 52.249-9(a)(1). Federal government contract attorneys, Theodore P. Watson & Associates, LLC, advise clients to pay very close attention to the language of a Default clause. Failure to reach contract milestones can lead to the government contract being terminated for default and the government contractor liable for damages such as excess reprocurement costs and even liquidated damages.

Three important notes on default terminations and government contracts

First, the federal government’s right to terminate a contract for default is discretionary, meaning that upon a finding of default a contracting officer is not required to automatically terminate the contract. Bastianelli III at 339. In fact, the F.A.R. enumerates seven factors to be used by a contracting officer as a guide in determining whether to terminate a contract for default. Id. at 340. See F.A.R. 49.402-3(f). Second, as with all contractual agreements, upon notice of default, the contractor may assert defenses in an attempt to justify a failure to timely perform or a failure to make satisfactory progress. Bastianelli III at 344-50. A contractor charged with failure to timely perform the contract may argue substantial performance, excusable delay or government waiver of completion date as defenses to a termination for default. Id. at 344. Likewise, a contractor charged with failure to make satisfactory progress may argue similar defenses. Third, where a contracting officer terminates a government contract for defaultbased on the contractor’s failure to make satisfactory progress gauged by percentage of completion, the federal government must justify its termination by proving with “clear and convincing evidence” the inadaquecy of the contractor’s progress and the high improbaility that the contract will be completed by the completion date. Bastianelli III at 351. The federal government contract attorneys at Theodore P. Watson & Associates, LLC emphasize to clients the importance of knowing your rights and available defenses upon the termination of a federal government contract for default.

Legal Decisions

In a recent decision, the Armed Services Board of Contract Appeals (hereinafter “Armed Services”) upheld the termination for default of a federal government contractor awarded a contract by the Army Corps of Engineers, Europe District. Appeals of FFR-Bauelemente + Bausanierung GmbH, ASBCA Nos. 52152, 54563, 54808, 54809, 55017 (July 6, 2007). Appellant was originally awarded a fixed-price construction contract for the restoration of building 8246, Smith Barracks, Baumholder Germany. Id.at 1. The completiton date was 290 days, approximately nine months, following the date of the contract award. Id. at 20. After 113 days, approximately four months after the date of the contract award, the contracting officer concluded that appellant could not reasonably complete the contract by the contract completion date since virtually no work had been accomplished. Id. The contracting officer issued requests for proposals and awarded the remainder of the contract to another federal government contractor 60 days after appellant’s termination for default. Id. at 36.

Armed Services began its analysis by stating that a termination for default is a drastic sanction. Id. at 32. They stated further that a termination for default requires the existence of a reasonable belief on the part of the contracting officer that the contractor could not perform the the entire contract effort within the remaining time for contract performance. Id. Armed Services held that the contracting officer had acted reasonably in determining that appellant could not complete the remainder of the contract by the contract completion date. They held further that the contracting officer had acted reasonably to minimize excess costs, obtain a reasonable price and mitigate its losses. Id.For that reason, appellant was held liable for the excess costs of reprocurement. Id. at 37. In addition, because the contracting officer was justified in terminating appellant’s contract for default, Armed Services held that the Army Corps of Engineers was also entitled to liquidated damages. Id. at 38. At Theodore P. Watson & Associates, LLC our federal government contract attorneysand consultants understand that a termination for default is not something to be taken lightly by a federalgovernment contractor. Fighting the federal government and avoiding excess repocurment costs and liquidated damages may not be an easy task, but it can be done, so long as you know your rights and have the proper legal guidance.

For further information regarding this legal topic or any other aspect of federal government contract law, please feel free to call Theodore Watson Esq.  (720) 941.7200 at Theodore P. Watson & Associates, LLC. Or contact us online.

Watson and Associates, Serving government contractors facing termination for default  in Colorado, Wyoming, New Mexico, Kansas and Nebraska, New York, Los Angeles, San Francisco, Chicago, Illinois, Michigan, Pennsylvania, Virginia, North Carolina, South Carolina, Arkansas, Denver, Colorado Springs, Utah, California, Oklahoma, Ohio, Maine, Florida, Texas, Nevada, Las Vegas, Georgia, Hawaii, Alaska, Washington D.C., West Virginia, Florida, Indiana, Washington, Mississippi, Tennessee, Miami, Virgin Islands, Rhode Island, Vermont, Wisconsin, Minnesota, Missouri, Virgina, Delaware, Connecticut, Arizona, New Hampshire, Massachusetts, Montana.

Moving Into Government Contracts

By: Theodore P. Watson, Esq. Government Contract Attorney

As the economy becomes tougher, more and more businesses are seeking to venture into government contracts as a way of sustaining long-term income. This is a very lucrative business venture. However, contractors must also be aware of the federal procurement rules

If you are a new business, or even an existing business, becoming a contractor with the federal government is pretty easy. Unlike state government contracting programs, the federal government has a virtually free process. The Federal Acquisition Regulation (FAR) only requires a business to be registered at www.ccr.gov.

The government generally advertises contracts over $2500,000. www.fbo.gov is the focal point for all government agencies to advertise government contracting requirements.

Q: Do I need a business plan or other documents to be a government contractor?

No. Government contracting, unlike most state programs is a relatively easy process you do not need a business plan or tax filings to become a federal contractor.

Q: After I register, what else do I need to do to become effective at government contracting?

After registration, the key is developing simple marketing material and a strong capability statement. You must be able to articulate to the government contracting officer what services or products you offer. Have a separate page with your NAICs codes. This series of six numbers spells out the industry for which you offer services or products.

Q. Can only small businesses perform government contracts?

No. However, the Small Business Act suggests that the government contracting agencies offer contracting opportunities to small businesses if there is reasonable expectation that two or more small businesses will submit an offer.

There are some industries where statistics show that large businesses can perform more effectively For example garbage services are generally open to large government contractors to bid. This is called “full and open competition.”

Q: What if I have no previous experience; can I become a government contractor?

Yes. Congress receives the majority of taxes from small business. Thus, it would be counter-intuitive for it to only require small businesses that have previous past performance to qualify to become a government contractor.

Government contracting law states that if a bidder submits a bid but has no past performance, the contracting officer shall give you a neutral rating. In other words, you cannot be given a negative rating.

Q: How do I overcome a lack of previous experience when bidding on government contracts?

Government contract law allows businesses to team with other companies and create joint ventures in order to perform government contracts. You should seek out qualified businesses that have the past performance, equipment or other resources that you can compliment each other on.

Q: Do I need to acquire professional consultants to become a government contractor?

This answer depends on your business goals, budget and contract initiatives. If you have a budget, it may be wise to secure a professional government contracting consultant that understands the process. For example our firm offers training for large corporations. However, we also consult with smaller businesses that don’t have large budgets but still need to be pointed in the right direction.

Do I need to hire an attorney if I choose to go into government contracting?

Government contract law has many winding rules. However, it is not necessary to hire a government contract attorney right away. As you learn the process for an experience federal consultant, you may want to retain outside counsel in order to have questions answered as they arise.

During public speaking engagements and government contract training seminars, our lawyers typically suggest that when you are awarded a government contract, you should at a minimum consult with an attorney to understand what contractual obligations you have to fulfill.

What are the chances of me getting a government contract?

Although nothing is guaranteed, you can increase your chances but having experienced government contracting persons on your team. There are numerous statistics that show first timers are awarded government contracts. The government contracting rules even allow for an emerging small business category. Here, the contracting officer can award projects at $25,000 or less without consideration of past performance. I would say that your chances (given that you have strong advisors) can range from 50-60% Knowing how to market to the government is the first priority. Learning how to be competitive and present your business to the agency is also paramount.

For instance, our team has actually assisted clients that have never been engaged in government contracts in awards. Therefore, it is not impossible to do. Knowing how the game is played is critical. Remember, a contractor should not market to the federal government in the same manner as in the commercial sector.

For additional questions feel free to contact our office at 720.941.7200 or visit our main government contracting website

To file for a divorce in Colorado you must have resided in the state for at least 90 days prior to the filing of your case. As grounds for your case you must allege that the marriage is irretrievably broken. This means that there is no way that you all will get back together. Watson & Associates educates family law clients on what to expect when you file for a Colorado divorce.

What happens after the action is filed?

Colorado divorce law implements an automatic restraining order. Good divorce attorneys will instruct you not to close bank accounts, sell property or move the children out of state. The penalties can be pretty stiff and it will harm the result of your case. If you know that is occurring you should bring this to the attention of your attorney immediately.

The divorce process. How long does it take?

A Colorado divorce court will not grant a divorce until at least 90 days after filing. Having said this, the may be various contested matters such as child custody, marital property or other family law disputes. This just increased the wait time.

You should find an attorney that can help you minimize divorce disputes. This reduces the time that the court has to get involved.

What happens when you can’t agree on terms?

The answer is simple. The court does it for you. During a divorce proceeding, your divorce attorney should focus on resolving matters. Sometimes, you the client may have to compromise. Why? The court may solve the problem in a fashion that you may not like. Remember, comprise means that someone has to give up something and not all or nothing. Contact one of our Denver divorce lawyers today for immediate help or call 720.941.7200.