What to Do Immediately After Winning a Government Contract: A Comprehensive Guide
Winning a government contract is an exciting milestone for any business. It’s a significant achievement that can lead to long-term growth and new opportunities in the government marketplace. However, securing the contract is just the beginning. The real work starts now. To ensure sustained success and build a strong reputation within the government contracting space, it’s crucial to manage the post-award phase strategically and effectively.
This guide walks you through the key steps to take after winning a government contract, including managing subcontractors, paperwork, communication, compliance, and more. By following these best practices, you can set your business up for continued success.
Organize Your Paperwork
Once you win a government contract, the first thing you should focus on is ensuring all necessary paperwork is in order. This includes contracts, legal documents, and financial arrangements. The government operates with high levels of scrutiny, and missing documentation or administrative oversights can cause delays or even jeopardize your contract.
Here’s a breakdown of the essential paperwork to handle right away:
- Non-Disclosure Agreements (NDAs): If you’re working with subcontractors, employees, or any external partners, make sure you have NDAs in place to protect sensitive information. These can be drafted by an attorney or found online. Use platforms like DocuSign or Adobe for easy electronic signatures.
- W-9 Forms: For tax purposes, ensure you have a W-9 form from every subcontractor you work with. If they’re a corporation, you won’t need to issue them a 1099, but it’s better to have everything on file upfront.
- Contract Agreement: Ensure both parties—your business and the subcontractor—are clear on the deliverables, timelines, payment terms, and reporting structures. If a dispute arises, having a clear contract in place will save time and reduce complications.
Maintaining thorough and organized documentation from the start will help you stay compliant with government regulations and avoid penalties down the line.
Define Clear Expectations for Subcontractors
Working with subcontractors can be a great way to expand your capacity and meet the specific needs of a government contract. However, to ensure quality and smooth collaboration, it’s essential to set clear expectations from the outset.
- Work Hours and Attire: Clearly outline when and where work will take place, and specify any required attire. For instance, if a contract requires work at a government facility, there may be specific guidelines for dress or behavior.
- Reporting Structure: If the contract involves staffing, it’s important to clarify that subcontractors report to you, not directly to government employees. This ensures that your business maintains control of the project and can resolve issues before they escalate.
- Delivery Standards: Clearly communicate what constitutes an acceptable deliverable. Whether it’s a physical product or a service, you need to ensure that your subcontractor understands the quality standards expected by the government.
Document everything in writing and review it with your subcontractors to ensure everyone is on the same page. A written agreement helps to eliminate misunderstandings and can be referenced if any disputes arise.
Handle Payment Arrangements Professionally
One of the most important steps in maintaining a positive relationship with your subcontractors and team is ensuring payment arrangements are clearly defined and timely. The government may have lengthy payment processes, so it’s crucial to manage cash flow effectively.
Here are some key points to address:
- How Much and When: Specify how much your subcontractors will be paid, when they can expect payment, and the method of payment (e.g., ACH, check, QuickBooks, etc.). Avoid using consumer payment apps like Venmo or Cash App for professional transactions.
- Purchase Orders: Use systems like QuickBooks to generate and track purchase orders. This makes it easy to document every payment and ensures clarity regarding what services or products have been delivered.
- Payment Delays: Inform subcontractors upfront if there’s a likelihood of payment delays, particularly when waiting for government payments to be processed. Transparency will help avoid misunderstandings and maintain trust.
Prompt and transparent communication about payments fosters positive relationships, which can lead to better performance and long-term partnerships.
Establish a Clear Line of Communication
Effective communication is the key to keeping a project on track, especially when working on government contracts that require precise coordination and timely completion. Set up a preferred communication method that works for both you and your subcontractors.
Some common tools include:
- Text or WhatsApp: For quick, informal updates.
- Email: For formal documentation of conversations or agreements.
- Slack or Teams: For larger teams working on complex projects.
Make sure that all parties involved are comfortable with the chosen communication platform. Additionally, if your subcontractors are working on-site at a government facility, plan how they will communicate any potential issues that arise during the project.
Regular check-ins and clear communication channels will keep you in the loop and prevent minor issues from escalating into major problems.
Compliance and Security
Government contracts often involve strict compliance requirements, especially when the work takes place in government facilities or involves sensitive information. Failing to follow these regulations can result in penalties, loss of contract, or legal consequences.
Here are a few compliance areas to focus on:
- Access to Facilities: Ensure that subcontractors or employees have the proper clearance to enter government facilities. Federal buildings have stringent security protocols, so make sure all team members are aware of what they can and cannot bring to the site. For instance, firearms or certain restricted items might be prohibited, even in states with relaxed laws.
- Background Checks: Some contracts may require background checks for employees or subcontractors. Make sure that no one with an outstanding warrant or felony is part of the team heading to a government site.
- Secure Deliveries: If the contract involves delivering goods, ensure that the delivery process adheres to any government regulations regarding security and documentation.
Proactive communication about compliance can prevent last-minute disruptions and maintain a good standing with the contracting agency.
Ensure You Can Deliver What Was Promised
It’s common for businesses to win a government contract, only to realize they cannot meet the contract’s demands. Avoid this pitfall by thoroughly assessing your capabilities before starting the work.
Key areas to evaluate:
- Supplies and Inventory: If the contract requires specific products (e.g., 50 units of a custom item), double-check that your supplier can provide exactly what is needed within the specified timeframe.
- Labor and Expertise: Make sure you have enough skilled workers or subcontractors to complete the project. If your team lacks the expertise, consider outsourcing to reliable partners who specialize in those areas.
- Backup Plans: Have contingency plans in place in case something goes wrong. For example, if a key subcontractor becomes unavailable, you should have another resource ready to step in.
By conducting a realistic assessment of your business’s capacity, you’ll avoid costly mistakes and maintain your reputation as a reliable contractor.
Stay Involved Throughout the Project
Winning the contract doesn’t mean you can step back from managing the project. On the contrary, you must stay actively involved in overseeing both the project and contract management to ensure everything stays on track.
Some key responsibilities to focus on:
- Project Management: Assign a dedicated project manager to track progress, coordinate between subcontractors, and handle any issues that arise.
- Contract Compliance: Ensure that all work being performed adheres to the terms outlined in the contract. This includes timelines, deliverables, and any regulatory requirements.
- Client Satisfaction: Stay in regular communication with the contracting officer or government agency to ensure they are satisfied with the work being done. Address any concerns early to avoid disputes.
Your ongoing involvement ensures that the project is completed successfully, which can lead to future contract awards.
Show Appreciation to Your Team
Maintaining good relationships with your subcontractors, employees, and partners is essential for long-term success. A happy, motivated team is more likely to go above and beyond to ensure the project is completed to a high standard.
Here are a few simple ways to show appreciation:
- Bonuses: If the project is completed ahead of schedule or the government client is particularly happy, consider offering a bonus. This doesn’t always have to be monetary—it could be a gift card, a public shout-out, or even a handwritten thank-you note.
- Feedback and Recognition: Give positive feedback regularly and recognize when someone goes the extra mile. This fosters a positive work environment and encourages everyone to put in their best effort.
Your subcontractors and employees represent your business. When they feel valued, they’re more likely to contribute to the overall success of the project.
Conclusion: Sustaining Long-Term Success in Government Contracting
Winning a government contract is an incredible achievement, but it’s only the first step toward long-term success. By organizing your paperwork, setting clear expectations, handling payments professionally, communicating effectively, staying compliant, ensuring you can deliver, and staying involved, you set your business up for ongoing success.
If you need help in the government marketplace, FedBiz Access is the leading government contracting business development and marketing firm that offers research and engagement strategy coaching, registrations, certifications, and GSA Schedules, as well as marketing packages to target buyers at the federal level. We have over 23 years of experience working with thousands of small and medium sized businesses, helping them win over $35.7 billion in awards. From registration to award, FedBiz helps businesses succeed in the government marketplace. 🦅
If you’re ready to take your government contracting to the next level, schedule a complimentary consultation with a FedBiz Access specialist today.