Even in today’s difficult economic climate, the federal government is planning, funding and building projects. This may appeal to otherwise private commercial contractors and subcontractors seeking to fill the void left by the recession. Contracting with the federal government can be profitable, but it can also be dangerous for those new to the process. The following are just a few examples of complex federal contracting laws to consider and should be fully understood by before entering the world of federal contracting.
Authority Structure The authority structure of the federal government is rigid and must be respected. Different government personnel have different roles and authorities, and contractors should make sure the person with whom they are dealing has the authority to bind the government. That person is usually the contracting officer. Federal Acquisition Regulation (or FAR) states that only the contracting officer acting within the scope of the contract has the authority to bind the government with regard to contract modifications. But that authority is not unlimited. For example, FAR prohibits the contracting officer from executing a contract modification without first obtaining a certificate of funds availability.