Federal Procurement Skills for SMB's - Part 1

FAR and CAS Guidelines

Federal Acquisition Regulation (FAR) and Cost Accounting Standards (CAS) are the rulebooks that govern our every move. Establishing a rock-solid accounting system that plays by the rules isn’t just about staying out of trouble; it’s about setting ourselves up for success.

Proper Classification

Proper classification procedures are the bread and butter of government financial accounting. By mastering direct and indirect costs, ensuring the allowability of expenses, and setting up an appropriate billing system, we’re not just following the rules—we’re setting ourselves up for success.

Auditing

First off, you’ve gotta keep your financial records tidy. That means documenting every transaction, expense, and bit of revenue tied to those government contracts. Clear, organized records aren’t just for show—they’re your secret weapon for sailing through the audit process with ease.

Next up, make sure your accounting system is singing in harmony with the Federal Acquisition Regulation (FAR) and Cost Accounting Standards (CAS). These regulations are like the rulebooks for government contracts, and you’ve gotta play by the rules if you wanna stay in the game. Checking that your accounting system ticks all the right boxes can help nip any audit-related headaches in the bud.

Pricing Strategy

Understanding the Bidding Process

Request for Proposal (RFP) or Invitation for Bid (IFB): This is where things get official. The agency rolls out a document outlining every little detail about the project, from specs to terms to evaluation criteria.

Now, onto the Public Advertisement phase. Some agencies like to throw a Pre-Bid Conference into the mix. It’s like a sneak peek behind the curtain, where potential bidders get the inside scoop on the project and a chance to ask all their burning questions.

Next up: Submission of Bids. This is where the magic happens, folks. Suppliers and contractors roll up their sleeves and put together their best offers, complete with pricing, technical know-how, and all the bells and whistles.

Now, onto the Bid Evaluation phase. The government agency puts on their detective hat and starts sleuthing through all the bids, looking for the cream of the crop. Price, technical chops, past performance matter.

After much deliberation, it’s time to select the winners. But winning the bid is just the beginning. Now comes the Contract Award phase. It’s like sealing the deal with a firm handshake and a contract signing ceremony. Negotiations may ensue, but in the end, it’s all about making it official!

Last but not least, we’ve got Contract Performance and Administration. It’s like keeping a watchful eye on your prize to make sure everything goes off without a hitch. From progress reports to quality checks, it’s all about making sure everyone plays by the rules and delivers on their promises.

This summarizes how the government collects bids for projects.

In the next newsletter: we'll continue with Pricing Strategies.

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