So as a Veteran Owned Business you’ve landed your first government contract. (Now your first real introduction in doing business with the Federal Government is about to begin!)
Everyone in your company is excited as this could easily be the largest contract in your company’s history, but just a couple of mis-steps can bring a small business to its financial knees.
These tips can help you get paid and get paid on time.
Tip # 1 – Progress Payment Terms
After you have won the bid, look to see if any activity you will be performing can trigger any type of progress payments. There are so many factors in the complicated world of federal contracting that can delay payment, it is best to negotiate getting paid step by step as you sign the contract or task order.
Examples of this include physical delivery of parts, conclusion of the project management phase of the project, training completed, etc. Serious thought needs to be placed on how your contract can be performed in sections.
Tip # 2 – Up Front Organization
Any information your company needs prior to beginning your task, absolutely must be obtained before you begin. Usually small businesses get anxious about starting their contract and just want to get on-site and go, but discipline must be present as this approach brings with it predictable delays in a federal installation which is bound by several regulations.
Examples of required information could be confirmed access to certain areas or personnel and data sheets that must be filled out to programming a system. If you have a standard process that works, slow down, be disciplined and stick with it.
Tip # 3 – Document-Document-Document
Everyone realizes that documenting your activity on a federal job site is sound business practice, but for a small business it is mission critical. You cannot get bored with it and must continuing to do so through final completion.
Signed ‘Final Acceptance’ documentation such as a DD250 can save you a whole lot of grief in getting paid.
These tips can save you literally hundreds of hours of grief – get paid as you go, do not begin until the federal site has done their part to be ready and document everything that happens in writing.
Bonus Tip – There is nothing stronger in building your federal client base than give your word and keep your word.
Semper Fi.
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