Dealing with Issues that Come with Government Contracts

by Kevin 6 months ago in advice

They are great contracts, but there are some things to consider.

Dealing with Issues that Come with Government Contracts

No matter what type of business you have, you could see having long-term contracts like those with the government as lucrative since you're going to be able to see a constant flow of income. However, you're going to want to make sure that you can deal with the difficulties that come with government contracts since any issues could cost you that contract for the life of your business. Take all of this information into consideration before you sign on a government contract.


If you've ever dealt with working with other businesses before, you know that you have certain rights when a contract is signed that a business can't break unless they want to be potentially sued. The government has exclusive rights though that businesses don't have since they are seen as a leading power. First, the government is allowed to revise any contract with you as much as they please, along with being able to cancel it at will. This doesn't mean that you are going to get ripped off though, since the government is required to either refund you or adjust the amount of money they are giving you due to changes or cancellation. You also need to know who you are going to deal with from the government when it comes to these contracts. You'll be contacted by contracting officers which are known as the PCO, ACO, and TCO. The PCO stands for the Procurement Contracting Officer, who is responsible for placing the contracts and handling any terminations of contracts when the contractor has any issues. The ACO stands for Administrative Contracting Officer, who is responsible for administering the contracts. Finally, the TCO stands for the Termination Contracting Officer, who is responsible for terminating contracts whenever the government needs to. It's important that you fully understand what goes into these contracts before you decide to rely on them for your business.


The government tends to make sure that whatever they are buying is of the quality they expect and isn't being tampered with. This is why companies that sign government contracts can be put under requirements that make them watched during the period in which they are producing for the government. For example, many companies in recent years have had to deal with data security issues in that they have had their databases leaked with customer information, confidential products in development, and more, which is why those under government contracts are under what is called DFARS compliance requirements. Under these requirements, you must meet the main goals of providing adequate security and to report any cyber incidents as quickly as possible to the Department of Defense. These goals go more in-depth once you get into all of the guidelines which include Access Control, Incident Response, Physical Protection, Risk Assessment, and more. Ensure that you have skilled employees working for you that can properly deal with all of these requirements so your government contract doesn't get canceled.


No matter how much business you are going to be doing with the government, dealing with government contracts can be stressful since you are dealing with so many restrictions that can completely cut off your income if you mess up one of them. If you see yourself having a contract that will last a long time, think about hiring professionals that have experience navigating the field of government contracts so you don't necessarily have to worry about the hard work that comes with it. You should be able to handle government contracts just fine once you're done with your first one.

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