Army Contracting Guide:

Don’t Bid if You Can’t Perform

A no brainer right.  I know lots of businesses would like to win government contracts.  But if you bid please make sure you can do the job.  A quick story: 

                End of the fiscal year is a hectic time.  Contracting Specialists are processing numerous contracts from about August through September.  Among all those contracts I received a purchase request for office furniture.  Now these contacts are painful to begin with.  Getting the color right, quality issues and so on.  In addition the furniture was for a VIP office.  But all is good it’s awarded, customer is happy, and delivery scheduled.  Then it goes bad.  The contractor who wins the bid is having business issues.  Ok, no problem I contact the next contactor who bid and we are off.  A week later it’s delivery time.  The contractor delivers the wrong color.  Should be no big deal, just deliver the correct color.  But oh no…the other color is more expensive, and the contractor wants more money.  That’s a no go, the contract was signed the specs were clear about the color, DK cherry, not brown walnut.  The solicitation even had color photos.  Oh and by the way there is no more money.  The contract used FY09 that money is gone back to treasury.  So what to do?  The VIP wants his furniture, the contractor is negotiating.  What’s the call?  FAR 49.4 Termination for Default.  A contractor defaults on delivery we have no choice but to process a T4D or termination for default.  This can be rather painful for the company.  Re-procurement costs, lost revenue, end up on the bad boy list.  Not good.  So in the end the contractor delivers.  He claims at a loss but probably at less of a long term cost to himself.

                The bottom line, read the contract carefully.  Don’t bid unless you know you can perform the contract.  The government keeps a list of contractors including the names of officers that have defaulted, defrauded or in some way not performed on a contract.  In my office we are required to check this list prior to making a decision on award.   Being on this list does not automatically negate your company from getting a contract, but if all things are equal….

                The story described above, though true, is an anomaly.  Most government contractors do their best to perform.  And believe it or not the government will work with contractors, within limits, to help contractors deal with business issues.  The end goal is a win-win.  The customer gets what they need and the contractor realizes a profit.

Seriously I am really back

It’s been months since my last post and most would think this blog defunct. But I am back. It’s been very hectic, between moving, training, and continuing my education I did not have time to post anything of substance. However things in my personal life are under control and I want to get this blog into high gear.

My posting schedule will be twice per week. I’m aiming for Wednesdays for a tool or short post and Sundays for a main post. Come back often because as I discover new things I will post as soon as I can.

I am Looking forward to continue interfacing with other contracting professionals, industry and international partners.

Ill be Back Soon

Hey I know its been awhile but i’ve been in school. I will return with new posts next week.