If you’re reading this, the chances are good that you’re either considering pursuing, or have recently entered into a government contract. If that’s true, then it’s easy to understand why. In 2017 alone, the Department of Defense spent approximately $294 billion on goods and services. With about half of those supplies being non-combat related, a wide array of companies from different industries have taken on government contracts. If this is your first contract, you should know that government work is unlike any other. While steady and profitable if done correctly, there are many pitfalls to government contracting that could potentially jeopardize your margins if not successfully navigated.
Below are several lessons you should learn before entering into that first government contract.
There are many rules.
The DoD has standards governing almost every aspect of the business you have been contracted to complete. There are specific, multiple and disconnected systems (DIBBS, VSM, iRAPT/ WAWF) that suppliers are required to use for bidding, invoicing and asset tracking. And every step in the process introduces the potential for human error, which could negate your hard work.
Maintaining compliance is a big deal.
Following every standard down to the letter is the key to a successful government contract. Suppliers who fail to meet a standard can be issued a Corrective Action Request (CAR), with four levels of CARs depending on the severity of the infraction. High level CARs require corrective actions that can result in reductions of payments, cost disallowances or even suspension of payments. Combine these with other consequences of noncompliance, such as rejected shipments or potential penalties, and it is easy to see why nonconformities can be so dangerous to your bottom line.
Technology offers a solution.
There is software available today, developed specifically for government contractors and approved by the DoD, that allows you to take the guesswork out of maintaining compliance and focus on the work at hand. This software reduces requirements for manual data entry (and the accompanying chances for human error), integrates data from DIBBS, VSM and iRAPT/ WAWF, reduces liability in the labeling process, and even alerts you of new contract awards so you can begin working on fulfillment.
Besides supplying the technology, Odyssey’s experience can help you stay ahead of the constantly changing government compliance standards so you can execute your contracts efficiently.
Contact Odyssey today to learn more about how our technology can assure your government contract work goes smoothly.