Securing a federal government contract is indeed a huge win for a small business. But negotiating terms and conditions of the business can prove to be a daunting task. Underestimating this process can make you doubt the worth of the deal you just won.
At times, these contracts feel complex and non-negotiable. And the businesses are usually asked to agree to them even if they don’t make sense. So, most companies wonder if they can influence federal government contract terms. Are you also one of them?
Stay with us to know more about the federal contract terms that apply to commercial contracts and what requirements and rights businesses are likely to have.
Changes in the Federal Government Contract Terms
The federal government permits agencies to change existing government contracts’ terms and conditions. This alteration can be done under the “Change Clause.” However, it can happen only when the contracting officer has the authority to make directive changes. He will issue a formal public declaration mentioning the nature of the change.
Please note that this clause cannot directly mention constructive changes. Moreover, they are recognized as effective ways to overcome inappropriate specifications hindering the project’s progress.
Process of Initiating an Alteration in Government Contract
- The federal government issues a contract.
- A business wins the contract, unaware of its defects and errors.
- The contractor starts the work and realizes that some terms and conditions are inappropriate and hard to accomplish.
- The federal government later identifies the contract’s errors and shortcomings.
- In consultation with the business, the contracting officer raises a query under the change clause of the government contracting.
- After a thorough investigation, the authorities can approve or dismiss the proposed government contract changes.
Tips on Influencing Federal Contract Terms
Here are some useful tips to influence federal contract terms and conditions:
Hire an Expert
According to the experts of the biggest government contracting companies in the USA, businesses should consider hiring a market expert who can help them in understanding the scope of positive outcomes here. Remember, your motive here is mutually change the federal contract terms and not get it terminated.
Secondly, make sure you have all the things in writing. For instance, if you feel that a certain clause can hamper the quality of your final products and services, then you should have ample proof for it. Moreover, you should also have scientific logics and reasons to ask for a change in the contract.
Another crucial aspect to consider here is how you will cope up with the new changes in the contract. You need to formulate effective strategies to handle the amendments and deliver the project on the predetermined deadline.
So, it was all about influencing the federal contract terms and conditions. You can initiate this process with a handful of wise and thoughtful ideas. However, ensure you have valid reasons in hand while filing for these changes. In the meanwhile, budding businesses can refer to an updated guide to start a government contracting business in 2022 to make the most of it.
Linda Rawson, who is the founder of DynaGrace Enterprises (dynagrace.com), an 8(a) graduate and EDWOSB, contributed to the content of this blog. She is the founder of GovCon-Biz. For further information, please connect with Linda on LinkedIn, or contact her at (800) 676-0058 ext 101.
Please reach out to us at GovCon-Biz should you have any questions.