How to Do Business with Treasury
Part I: Major Differences Between
Commercial and Government Practices
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Doing business in the private sector is in some
ways similar to doing business with the Department of the Treasury,
but government contracting also has some unique aspects that you should
be aware of
- The Department of the Treasury conducts its business through authorized
agents called Contracting Officers. Only Contracting Officers with
valid warrants may sign contracts and enter into binding agreements
with your company.
- Unlike your commercial customers, the Department of the Treasury,
under certain conditions, has the unilateral right to revise its contracts.
While you are entitled to equitable adjustments in price and/or delivery
time resulting from such revisions, you are committed to fulfill the
contract as changed.
- The Department of the Treasury is given extensive audit and work
surveillance rights under its contracts. You are obligated to maintain
and retain certain contract records and to submit them for audit on
demand. Should such audits reveal a failure to conform to contract
requirements, you may be subject to penalties or price adjustments.
- The Department of the Treasury uses its procurement program to attain
numerous national, social, and economic goals. If you participate
in a Department of the Treasury contract, you may have to cooperate
and comply with various programs to assist with achieving those goals.
- Certain types of contracts limit the amount of profit you can earn
and the amounts and types of costs you may recover.
- The Department of the Treasury has an absolute right to terminate
all or any part of your contract at any time either for convenience
of the government (with appropriate compensation to you) or for default
if your performance is unsatisfactory.
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Updated September 3, 2002 |
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