Advantages of a Government Contract

Warning: Parameter 1 to plgContentComments::onAfterDisplayTitle() expected to be a reference, value given in /var/www/sabretom/data/www/sabrect.com/libraries/joomla/event/event.php on line 67

When you look at the differences between private-sector contracts and government contracts, you’ll start to realize that there are many advantages to a government contract.

Advantage #1: Opportunity
The U.S. Government expends more than $150 billion annually to procure goods and services from private businesses. In addition, state and local governments together also spend approximately the same amount as the federal government. Government contracts can range from a few thousand to a billion or more.

Advantage #2: Clarity
Government contracts are very precise, unlike some private-sector contracts. They cover exactly what goods or services the government needs, as well as the exact terms of payment. A contract for less than $25,000, for instance, is issued through a purchase order and is easier to apply for than a large contract.

Advantage #3: Principles
Believe it or not, even the government has to obey the laws; especially with government procurement. Government contracts are open to all qualified bidders and no favoritism is allowed. The government is also required to set aside contracts for small, disadvantaged businesses.

Advantage #4: Stability
The lowest bidder is usually awarded the contract, so most businesses don’t look toward the government due to low profit margins. However, stability and reliability are two more advantages of a government contract. You will always be paid, though it may take up to a month to receive the payment.

Advantage #5: Stacking the Deck
Some of these contracts may be small, meaning under $100,000. However, you can often pick up many smaller contracts to stack on top of that $100,000; these smaller contracts don’t require the full bidding process. In addition, if you develop patents or copyrighted materials, you’ll probably be able to keep the intellectual property rights as well.

Keep in mind that the government buys the same things that everyone else buys – in huge quantities. While private-sector contracts may sometimes seem more lucrative, government contracts do have their advantages.

20 Votes

0 Comments

Add Comment

Ressources

Warning: Parameter 1 to modMainMenuHelper::buildXML() expected to be a reference, value given in /var/www/sabretom/data/www/sabrect.com/libraries/joomla/cache/handler/callback.php on line 99

About Company

“Sabre Consulting & Training provides consulting, training, integration, management, engineering and logistical support to industry and government clients around the world. The members of Sabre Consutling & Training are highly respected and credentialed professionals with a vast portfolio of experience and relationships extending throughout the United States and internationally.”

Deprecated: Function eregi() is deprecated in /var/www/sabretom/data/www/sabrect.com/modules/mod_random_image/helper.php on line 84

Deprecated: Function eregi() is deprecated in /var/www/sabretom/data/www/sabrect.com/modules/mod_random_image/helper.php on line 84

Deprecated: Function eregi() is deprecated in /var/www/sabretom/data/www/sabrect.com/modules/mod_random_image/helper.php on line 84

Deprecated: Function eregi() is deprecated in /var/www/sabretom/data/www/sabrect.com/modules/mod_random_image/helper.php on line 84