Editor’s Note: This article is reprinted with permission courtesy of Richard F. Busch, II, www.rbuschlaw.com. All rights reserved.
By Richard F. Busch, II, Esq.
Why should an otherwise commercial company consider entering the Government market place as a prime contractor, vendor, or subcontractor at any level, especially if you can qualify for a preferred status (Veterans, SDVOSB, or Women Owned Small Business?
Due to the growth in technology, the Government has determined that the commercial business sector must be the primary force to develop and provide the products and services they need to achieve society’s goals. Consequently, the Federal Acquisition Regulation (“FAR”) and the individual agency supplements have been revised to become much more “commercial” friendly in most situations. If the potential contractor is a “commercial” business engaged in supplying commercial products or services, many of the complex requirements simply do not apply. Except for a very limited number of government unique provisions, most clauses are negotiable. In addition, there are award goals set by Federal statute that define prime contracting goals for small businesses, veteran owned small businesses, women-owned small business, Service Disable Veteran Owned Small Businesses, and more.
The following are some general points a commercial/preference business should consider:
- Just over $573B DoD 2016 proposed spending plan and an additional $163 B for Veterans Affairs programs (total government budgets much bigger)
- Limited government audit rights for commercial companies with commercial products
- Terms and conditions more conducive to commercial application (subject to the unique mission of the government)
- Over 11 Million commercial supplies (products) and services at volume discounts offered on GSA Schedule contracts
- Favorable research and development terms if negotiated correctly
- Commercial pricing based on the market—(Government does request the best commercial prices under like terms and conditions)
- Electronic Payment with automatic interest on due and payable amounts for late payments
- Joint venture, teaming arrangements, and subcontract opportunities in addition to prime status purchases
The government market sector has vast potential for a company that has the resources and products/services to benefit the goals of the government. If a company is considering doing business with the government, the effort must be based on one simple principle—DO IT RIGHT!
© Busch Law Firm LLC (2016)