Federal Contracting
I have been in my federal contractor role now for nearly 18 months. I want to share a few things that you will want to ask when interviewing:
- Is this a firm-fixed price or time and materials contract?
- How much longer do you have this contract?
- How do you treat overtime/extra hours requests from your client?
- As a contractor am I 1099 or W-2 status?
The Federal Acquisitions Regulation (FAR) is the policy for Federal Contracts. The two roles that have oversight for an awarded contract are the Contracting Officer (CO) and the CO Representative.
Smaller companies will often allow small abuses of the FAR creep into a relationship to stay on good terms and keep the money rolling. Here are some answers that should give you pause in onboarding:
Time and Materials - the FAR stipulates this is not a good contract for the government and generally applies to short-term work.
We are in our 3rd option period - means the contract may only have one more year before up for rebid.
Extra hours must be approved in advance - if you are salary W-2, your employer may bill the client and pass nothing to you.
1099 when working with the fed is highly suspect. Your state labor commission will have IRS guidelines, but do not settle for 1099 unless you really know what that means for you. No benefits. No Vacation/Sick. No paid holidays.
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Hey Cavett Ishihara , good to see you back in the community! Thanks for sharing this information. Hope all is well.
There is no place in Federal Contracting for 1099's. Why, who is going to be responsible for performance and fiscal obligations? If someone offer a job as a 1099 for the position they will collect the money and leave you holding bag. I assume it is Set Aside for Small Business! The best thing to do is make an appointment with you locale SBA office with a Small Business rep. Bring the contract with you. If it's real they will help you to get the contract for yourself and assist you to get it funded. Be your own boss! It favors you. They pay their bills every 21 days. So you will have the funds to pay back an SBA loan.
Small businesses usually do not have to follow the FAR or CAS, mostly large businesses has to follow them. It depends on the FAR and the size of the contract.
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Hi Cavett! I am so glad that you shared this! What wonderful information for those interested in that role and how to prepare for their interview. : )
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