Legal and Accounting Issues for Federal Procurement

While acquisition streamlining has in some ways resulted in a more business-like federal procurement process, federal procurement is still subject to the FAR and (for defense procurement) DFARS. For this reason, it is recommended to have a contract attorney that specializes in government contracts review your contracts and advise you on any special requirements and obligations you may have. Legal and other government contracting experts can help you in the following ways:

  • Prepare, negotiate and review contracts and teaming agreements
  • Assist you in qualifying for and obtaining government contracting vehicles such as the GSA Schedule
  • Perform claims analyses and prepare claim submissions
  • Evaluate and protect intellectual property rights relating to government contracts
  • Assist you in addressing and evaluating the various ethical and procurement integrity issues that arise in the course of doing business with a government agency, including evaluating whistle-blower claims and representing companies facing suspension or debarment
  • Assist you in complying with various social and economic policies that apply to government contractors such as Buy American laws, and minimum wage requirements for certain employees working on government contracts
  • Review, identify and negotiate contract changes and terminations
  • Assist you in determining whether certain types of costs incurred in performing government contract are allowable under the applicable and special cost principles that apply to government contractors
  • Prepare and litigate bid protests
  • Handle claims under the Contract Disputes Act before boards of appeal and the Court of Federal Claims.

The government has an open process for small business to engage in awards, review the process, question performance issues, and provide remedies if needed. The process and guidelines are different from commercial transactions and, as with any business venture, understanding the rules of the game can help you better manage the process.


A government contract may also impose certain record-keeping and financial accountability requirements on you. Some contracts allow the government to audit your records and you may be required to meet certain solvency or bonding requirements both before the contract is awarded and during performance.



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