How to Manage Federal Contracts
If you are tasked with the responsibility of managing a federal government contract, the good news is that the federal government had the highest confidence in your company's bid and services to award it the federal contract. Now you must back up the federal government's faith in your organization by properly managing that contract.
Managing a federal government contract requires networking, knowledge of your field and of the contract, qualified personnel to execute the contract and strong organizational skills.
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Instructions
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Contact other government contractors (especially those that have been awarded a contract by the same agency) once the contract has been awarded to your company and speak to them about their experience. This information will help you to identify and anticipate problems and to craft solutions before they occur during the management phase.
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Read and review the contract thoroughly. Identify all of your obligations under the contract and any limitations on how you may fulfill those responsibilities. For example, the contract may restrict your ability to subcontract work or require you to employ pre-approved subcontractors. Determine how your company is accountable to the federal government and factor this into your organization's practice and policies. If, for instance, you are required to file progress reports with the awarding agency, determine how your company will gather and compile reporting information prior to the report's due date.
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Designate a federal contracts manager within your organization. Federal contract management is a speciality field, with many institutions of higher education offering degrees in the field. Hiring a professional or certified federal contracts manager ensures that your company staff's personnel are well-versed in contract management within a federal environment, but also provides your organization with a resource for other employees who may need guidance in carrying out their duties under the contract.
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Document all phases of the administration of the contract and file all documentation regarding the contract at the company's principal place of business. Having a paper trail of all items relating to the federal government contract is vital to proper contract management because federal contract agreements are subject to audits. Furthermore, proper filing allows you to maximize any monies owed to you under the law. The Prompt Payment Act requires the federal government to pay interest on any contractor invoice outstanding after 30 days. As such, it is important to keep copies and records of all invoices and when they were forwarded to the agency for payment.
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