{"id":358009,"date":"2016-04-04T10:46:18","date_gmt":"2016-04-04T15:46:18","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/hirealawyer\/choosing-the-right-lawyer\/government-contracts-law.html"},"modified":"2024-04-10T07:59:10","modified_gmt":"2024-04-10T12:59:10","slug":"government-contracts-law","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/government-contracts-law.html","title":{"rendered":"How an Attorney Can Help Your Business Win Government Contracts"},"content":{"rendered":"\n<div class=\"wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n<div class=\"fl-page-articles fl-section-main fl-section-main-full-width\"><h1 class=\"fl-no-margin-top\">How an Attorney Can Help Your Business Win Government Contracts<\/h1>\n\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/susan-buckner-j-d\/\">Susan Buckner, J.D.<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/melissa-bender-esq\/\">Melissa Bender, Esq.<\/a>\n                | Last updated\n        <time>\n                            April 10, 2024\n                    <\/time>\n    <\/div>\n\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n    <div class=\"fl-callout-text article-blockquote\">\n        <div>\n<div id=\"joEPyAJHHANVeuvd2nTwr-content-0\">\n<p>Government contracts law governs how federal agencies buy goods and services and ensures the process is fair, competitive, and compliant with strict regulations. Businesses often work with government contract attorneys to navigate these regulations, bid on contracts, and resolve issues that arise during the contracting process.<\/p>\n<\/div>\n<\/div>\n\n    <\/div>\n\n\n\n<p>The U.S. Government is the world&#8217;s largest consumer. It buys and sells everything from everyone. Because it is a government agency, there are laws about how it must do business with other government agencies and businesses.<\/p>\n<p>Government contracts law ensures that the government, companies, and other agencies comply with specific laws, such as the <a href=\"https:\/\/www.congress.gov\/bill\/103rd-congress\/senate-bill\/1587\/text\" target=\"_blank\" rel=\"noopener\">Federal Acquisition Streamlining Act<\/a> (FASA), which encourages the government to buy existing products. The <a href=\"https:\/\/www.sba.gov\/business-guide\/grow-your-business\/become-federal-contractor\" target=\"_blank\" rel=\"noopener\">U.S. Small Business Administration<\/a>\u00a0(SBA) helps small companies become federal contractors.<\/p>\n<p>Becoming a government contractor can be profitable for large and small businesses. But dealing with the regulations is difficult. This is\u00a0because federal contracting comes with strict rules, detailed bidding requirements, and complex compliance obligations that businesses must follow to win and keep government work.<\/p>\n<p>This article explains the rules government contractors must follow and the types of contracts federal agencies use. You&#8217;ll also learn how a <a href=\"https:\/\/lawyers.findlaw.com\/government-contracts\/\" target=\"_blank\" rel=\"noopener\">government contracts attorney<\/a> can help your business prepare and win competitive bids.<\/p>\n<h2>Government Procurement Laws<\/h2>\n<p>Government procurement laws limit the government&#8217;s ability to procure goods and services in ways that benefit American companies. <a href=\"https:\/\/www.gao.gov\/products\/105519\" target=\"_blank\" rel=\"noopener\">The Buy American Act of 1921<\/a> requires that materials bought within the U.S. be manufactured within the U.S. from U.S. raw materials. Later laws added to the Buy American Act. The most recent Build America Buy America Act of 2021 adds construction materials to the products.<\/p>\n<p>The procurement process involves a competitive bidding process designed to avoid favoritism and nepotism and ensure fairness to all bidders. A company must register as a federal contractor before it can bid on a contract. This is when you may need a <a href=\"https:\/\/lawyers.findlaw.com\/government-contracts\/\" target=\"_blank\" rel=\"noopener\">government contracts attorney<\/a>.<\/p>\n<h3>Prime Contractors and Subcontractors<\/h3>\n<p>Because government contracts are often large and complex, big companies or agencies bid on and win the contracts. These are prime contractors or general contractors. Smaller companies provide specialized services or products to the contract as subcontractors. Subcontracting can be equally lucrative and as demanding as prime contracting.<\/p>\n<p>All contractors must follow federal regulations when doing business with the government. These rules can include:<\/p>\n<ul>\n<li><strong>Size limits<\/strong> for &#8220;small businesses&#8221; and who may bid on those contracts<\/li>\n<li><b>Sourcing rules<\/b> to avoid self-dealing and conflicts of interest<\/li>\n<li><b>Limits on subcontracting<\/b> and what companies and agencies can subcontract<\/li>\n<li><b>Compliance with international trade agreements,<\/b> including\u00a0<a href=\"https:\/\/www.trade.gov\/north-american-free-trade-agreement-nafta\" target=\"_blank\" rel=\"noopener\">NAFTA<\/a><\/li>\n<\/ul>\n<p>Private businesses contracting with the U.S. government must also follow <a href=\"https:\/\/www.findlaw.com\/employment\/wages-and-benefits\/wage-and-hour-laws.html\">federal labor laws<\/a> and state guidelines. If you contract through a federal agency, it may have other requirements. With all these restrictions, a government contract lawyer is essential.<\/p>\n<h2>Types of Government Contracts<\/h2>\n<p>The government regulates bids through the Federal Acquisition Regulation (FAR), a department of the <a href=\"https:\/\/www.gsa.gov\/\" target=\"_blank\" rel=\"noopener\">General Services Administration<\/a>. Once you are a federally registered contractor, you will go here to learn what each department wants for its bid packages.<\/p>\n<p>There are many kinds of contracts, depending on what the government needs and how soon it needs the products. An incentive contract encourages contractors to complete long-term projects on time or under budget. Governments use incentive contracts in large, complex projects with extended deadlines.<\/p>\n<p>Most contracts in the private sector fall into four categories:<\/p>\n<ul>\n<li><strong>Fixed-price contracts<\/strong>\u00a0have a set dollar amount that the contractor cannot exceed. When the contractor knows the scope of work ahead of time, they can sign fixed-price contracts. The contract may contain a clause for payment if there is a cost overrun.<\/li>\n<li><strong>Cost reimbursement contracts<\/strong> are often used in research and development projects. The government pays the contractor a fee and reimburses the contractor for extra expenses.<\/li>\n<li><strong>Time and materials contracts<\/strong>\u00a0are used when the end cost is unclear and the scope of the work is difficult to define. The contractor must provide regular invoicing for hours and materials during the project.<\/li>\n<li><strong>IDIQ<\/strong> or &#8220;indefinite delivery\/indefinite quantity&#8221; contracts\u00a0are the reverse of requirements contracts common in manufacturing. In an IDIQ, the government knows it will need a certain product at some time, but not when or how much. The contract informs the contractor that the government will ask for the product at some point and expect the contractor to deliver.<\/li>\n<\/ul>\n<h3>How Does Competitive Bidding Work?<\/h3>\n<p>To get these and other contracts, companies must engage in competitive bidding. This eliminates <a href=\"https:\/\/www.findlaw.com\/civilrights\/discrimination.html\">favoritism and discrimination<\/a> in contract awarding. The procedure differs slightly from ordinary bidding competitions in government contracts.<\/p>\n<p>The federal government maintains a list of qualified bidders. It\u00a0<a href=\"https:\/\/www.sba.gov\/partners\/contracting-officials\/small-business-procurement\" target=\"_blank\" rel=\"noopener\">must include women-owned<\/a>, minority-owned, disabled-veteran-owned, and\u00a0<a href=\"https:\/\/www.sba.gov\/federal-contracting\/contracting-assistance-programs\/hubzone-program\" target=\"_blank\" rel=\"noopener\">HUBzone<\/a>\u00a0(historically underutilized business zones) businesses by law. Only qualified government contractors can bid on contracts.<\/p>\n<p>The government sends all qualified contractors a Request For Proposal (RFP). Government requirements for RFPs are strict. If you have never completed a government RFP, you should not try to learn on the fly. <a href=\"https:\/\/lawyers.findlaw.com\/government-contracts\/\" target=\"_blank\" rel=\"noopener\">Get legal advice<\/a> before submitting your proposal. Your attorney can also ensure your RFP is sealed and submitted by the deadline.<\/p>\n<p>The Government Accountability Office (GAO) has the final say over contract claims or disputes. Bids or awards violating federal law are subject to review by the GAO.<\/p>\n<h2>Contract Dispute Resolution<\/h2>\n<p>The\u00a0<a href=\"https:\/\/www.justice.gov\/civil\/false-claims-act\" target=\"_blank\" rel=\"noopener\">False Claims Act<\/a>\u00a0allows the government to sue fraudulent contractors for three times their damages plus a fine. The FCA also allows private people to sue on behalf of the government (<a href=\"https:\/\/www.findlaw.com\/employment\/whistleblowers\/qui-tam-actions-overview.html\">a qui tam action<\/a>) and collect part of the settlement.<\/p>\n<p>Unfortunately, fraud against the government is a profitable occupation. It was widespread during the Iraq and Afghanistan conflicts. The <a href=\"https:\/\/www.justice.gov\/\" target=\"_blank\" rel=\"noopener\">U.S. Department of Justice<\/a> (DOJ) handles false claims cases in Federal Circuit Court.<\/p>\n<p>The\u00a0<a href=\"https:\/\/www.justice.gov\/jm\/civil-resource-manual-70-contract-disputes-act\" target=\"_blank\" rel=\"noopener\">Contract Disputes Act<\/a>\u00a0(CDA) is a system for resolving legal issues in all government contracts about procuring property, services, or construction. Once a party brings a request for decision to a contracting officer, the contracting officer must decide before the contractor can appeal the result to a board of contract appeals. The claimant may also present the case to the U.S. Court of Federal Claims.<\/p>\n<h2>Why You Need a Government Contract Attorney<\/h2>\n<p>Federal government contracts are a reliable source of income for many companies. Bidding on these contracts means understanding the details the government demands. If you plan to try for some of that money, it&#8217;s wise to get legal advice from a government contract lawyer\u00a0in your area.<\/p>\n<p>FindLaw&#8217;s directory of <a href=\"https:\/\/lawyers.findlaw.com\/government-contracts\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">government contract attorneys<\/a> can get you started. Because state law is relevant, your attorney should be licensed in your state. Enter your city or ZIP code to find a list of qualified legal professionals near you. Your results page will also show ratings and contact information.<\/p>\n<h2>Government Contract Terms To Know<\/h2>\n<p>The following terms are often used when discussing government contract law.<\/p>\n<ul>\n<li><b>Appropriation: <\/b>In governmental accounting, an expenditure authorized for a specified amount, purpose, and time<\/li>\n<li><b>Bid protests:<\/b>\u00a0A process to challenge the award or proposed award of a procurement contract. Contractors can also challenge the terms of the contract solicitation and the federal procurement action itself.<\/li>\n<li><b>Comptroller general:<\/b>\u00a0The <a href=\"https:\/\/www.gao.gov\/about\/comptroller-general\" target=\"_blank\" rel=\"noopener\">accounting officer<\/a> who investigates financial claims against or on behalf of the U.S. government<\/li>\n<li><b>Government Accountability Office (GAO):\u00a0<\/b>The federal government office that carries out legal, accounting, auditing, and claims settlement functions about government programs and operations. In 2014, the General Accounting Office formally became the Government Accountability Office.<\/li>\n<li><b>Mentor prot\u00e9g\u00e9:\u00a0<\/b>The <a href=\"https:\/\/certify.sba.gov\/mentor-protege-program\" target=\"_blank\" rel=\"noopener\">SBA mentor prot\u00e9g\u00e9 program<\/a> helps small businesses (&#8220;prot\u00e9g\u00e9<i>s&#8221;<\/i>) bid on government and DOD contracts with help from existing federal contractors.<\/li>\n<\/ul>\n<h2>Related Practice Areas<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/business-and-commercial-law.html\">Business and Commercial Law<\/a><\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/municipal-law.html\">State, Local, and Municipal Law<\/a><\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/administrative-law.html\">Administrative Law<\/a><\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/government-agencies-and-programs.html\">Government Agencies and Programs<\/a><\/li>\n<\/ul>\n\n\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g 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<fieldset>\n                    <legend class=\"was-this-helpful__feedback-form-title\" tabindex=\"0\">Why was this not helpful?<\/legend>\n                    <div class=\"was-this-helpful__choose-option-message\" role=\"status\">\n                        <p class=\"was-this-helpful__choose-option-message-text\"><\/p>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--missing-info\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Missing Information\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--missing-info\"\n                        >Missing the information I need<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--complicated\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Too complicated\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--complicated\"\n                        >Too complicated \/ too many steps<\/label>\n                    <\/div>\n                    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          class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Other\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--negative-other\"\n                        >Other<\/label>\n                    <\/div>\n                <\/fieldset>\n            <\/div>\n            <div class=\"was-this-helpful__form-buttons-container\">\n                <button\n                    class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--positive at-feedback-submit fl-button secondary\"\n                    type=\"submit\"\n                >\n                    <span class=\"fl-button-content\">Submit<\/span>\n                    <i\n                        class=\"fa fa-angle-right medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n                <button\n                    class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--cancel fl-button primary disabled\"\n                    type=\"reset\"\n                >\n                    <span class=\"fl-button-content\">Cancel<\/span>\n                    <i\n                        class=\"fa fa-times-circle medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n            <\/div>\n        <\/form>\n    <\/div>\n    <div class=\"was-this-helpful__thank-you-message\" role=\"status\">\n        <i class=\"was-this-helpful__thank-you-message-icon fa fa-check\"><\/i>\n        <p class=\"was-this-helpful__thank-you-message-text\" aria-live=\"polite\"><\/p>\n    <\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"fl-section-sidebar\"><div class=\"fl-editors-summary\" data-testid=\"fl-editors-summary\">\n    \n    <div class=\"fl-editors-summary-content\" data-testid=\"fl-editors-summary-content\">\n                    <h2>Can I Solve This on My Own or Do I Need an Attorney?<\/h2>\n                <div class=\"fl-editors-summary-content-main\" data-testid=\"fl-editors-summary-content-main\">\n            \n        <\/div>\n        <ul class=\"fl-list-style-none\">\n                            <li data-testid=\"fl-editors-summary-content-item\">\n                    <i class=\"fa fa-check medium fl-editors-summary-content-item-icon\" aria-hidden=\"true\"><\/i>\n                    An attorney can help businesses win and keep lucrative government contracts\n\n                <\/li>\n                            <li data-testid=\"fl-editors-summary-content-item\">\n                    <i class=\"fa fa-check medium fl-editors-summary-content-item-icon\" aria-hidden=\"true\"><\/i>\n                    An attorney can simplify the process for business contracts, estate planning, and real estate legal issues\n\n                <\/li>\n                            <li data-testid=\"fl-editors-summary-content-item\">\n                    <i class=\"fa fa-check medium fl-editors-summary-content-item-icon\" aria-hidden=\"true\"><\/i>\n                    Minor <span data-term-id=\"56393319\">legal issues<\/span>, like traffic ticket or name changes, can often be handled on your own\n<div class=\"fl-editors-summary-content-description\" data-testid=\"fl-editors-summary-content-description\">\n<div class=\"fl-editors-summary-content-description\" data-testid=\"fl-editors-summary-content-description\"><\/div>\n<\/div>\n\n                <\/li>\n                    <\/ul>\n                    <div class=\"fl-editors-summary-content-description\" data-testid=\"fl-editors-summary-content-description\">\n                <div class=\"fl-editors-summary-content-description\" data-testid=\"fl-editors-summary-content-description\">\n<div class=\"fl-editors-summary-content-description\" data-testid=\"fl-editors-summary-content-description\">\n<p>Most legal situations can benefit from an attorney\u2019s guidance. 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