The first step of succeeding within the government contracting industry is for companies to identify their long-term goals. Companies should research which NAICS (industry) codes the company wants to be a part of, the services and products that you’re going to provide to the federal government, and the types of contracts they are going to go after—making sure those decisions align with long-term goals.
Past that, understand some of the legal and accounting requirements of each type of contract. Each contract is going to be written differently, so you want to ensure compliance with that contract or have the resources to be able to comply with those types of contracts. We recommend seeking advice from a government contracts attorney and/or a CPA versed in government contracting. Trying to acquire contracts with the Federal government can be costly and time consuming. Therefore, it is important to dedicate the proper resources to the areas that will align with what will ultimately be successful for the company.
It is critical for companies to remain competitive within the government contracting industry. This applies to your rates when bidding on potential government contracts and to retaining top talent within the government contracting industry. Ensuring your talent is satisfied will ultimately lead to high performance on contracts and in turn lead to achieving a good reputation with the Federal agency/department (your customer). One way to gain an advantage in retaining top talent is to properly structure your compensation packages.
In addition to remaining competitive within the industry, companies need to make the necessary investments potential impact of each decision you make on the type of accounting system, accounting expertise, and partners you have in the government contracting industry.
In summary, we recommend that you:
- Invest in an accounting system that allows you to be compliant with the Federal Acquisition Regulations (FAR) and track financial profitability at the contract/task order level specific to the government contracting industry.
- Hire the appropriate accounting expertise, either internally or outsourced, this can save you significant time and money when done up front.
- Secure the right partnerships to enhance capabilities and increase the chances of perform well on and win government contracts.
Although certain things may come easy now, it’s important to aim for success in the long run.
Next Up: GovCon FAQ #4: What are the types of contract awards that I can win?
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