Winning a Government Contract Is Just the Beginning
Winning a government contract is a major achievement, but the real work begins once the contract is awarded. At this stage, it’s crucial to ensure compliance, establish the right financial systems, and prepare your team to deliver results. By taking the right steps early, you can avoid common pitfalls and set your business up for long-term success.
Review Your Contract Thoroughly
Before moving forward, take the time to read your contract in full detail. Understanding key aspects such as performance timelines, payment terms, compliance requirements, and reporting obligations is essential. Also, be aware of any penalties for non-compliance. If you find sections that are unclear or overly complex, don’t hesitate to consult a government contracting expert or legal advisor. Additional guidance is available through SAM.gov to help you interpret federal contract compliance.
Register in Government Payment Systems
To receive payments, your business must be properly set up within government payment systems. First, confirm that your registration in the System for Award Management (SAM) is active and accurate. You may also be required to submit invoices through platforms such as Wide Area Workflow (WAWF), IPP, or Tungsten, depending on the agency. Finally, make sure your DUNS or UEI number is current, as this is necessary for identifying your business in federal systems.
Establish Financial Processes to Support Performance
Managing cash flow is one of the biggest challenges when working with government contracts. Government payment cycles are often long, so it’s important to be prepared. Understand your contract’s payment schedule and consider opening a separate bank account to track funds associated with the contract. Many businesses also benefit from setting up a line of credit or exploring funding solutions to bridge the gap while awaiting government payments.
Assign Clear Responsibilities to Your Team
Successful contract execution depends on having the right team in place. Start by appointing a project manager to oversee all aspects of contract performance and ensure deliverables are met on time. Assign someone to monitor compliance, making sure all reporting and regulatory requirements are followed. Lastly, designate a person to manage billing, invoicing, and financial tracking to ensure accurate documentation and alignment with federal standards.
Stay on Top of Compliance and Reporting
Government contracts come with strict compliance requirements, and meeting them is not optional. You’ll need to submit regular performance reports and keep detailed financial records throughout the project. Be proactive in tracking expenses and documenting deliverables. In many cases—especially in defense-related contracts—you must also follow cybersecurity protocols like the CMMC certification. Staying organized from day one can help you avoid compliance issues down the line.
Keep Communication Flowing with Your Government Contact
Strong communication with your government point of contact (POC) can make or break your contract performance. Make it a habit to check in regularly, provide status updates, and clarify any uncertainties early on. This not only helps resolve issues before they become problems but also demonstrates professionalism and reliability—both of which are important in building long-term relationships