So, you are interested in bidding on a federal construction project, but are you ready to?
There is no shortage of federal construction and other projects to pursue via the SAM.gov Contract Opportunities web page.
Bidding on any federal project is time-consuming, and a lot of time can be wasted on a rejected bid if you aren’t prepared with all the documentation and other required information.
Our team compiled a list of ten essential things that must be in place for a federal construction project bid.
1. Understand the bid requirements
Thoroughly review the solicitation documentation to understand all the components required to submit a complete bid package. Typical requests include the Past Performance Questionnaire, Teaming Agreements, bid formatting, and more.
2. Insurance and bonding requirements
What kind of insurance do you need, and how much?
What are the bonding requirements?
3. Do you understand the contractor and deliverables?
Doing business with the federal government can be quite lucrative but also very challenging. Submitting a bid on a project you don’t fully understand will start you and your team off on the wrong foot. Also, if you do not have the capability or experience to meet deliverable deadlines or quality standards, it can create very difficult circumstances for an organization and the people within.
4. Can you meet the Administrative Requirements of the project?
The Administrative Requirements of a federal construction project can be overwhelming to an inexperienced team, and even to an experienced team that doesn’t fully understand them. For example, you can’t mobilize or get your first progress payment with many projects until critical submittals are approved.
5. Do you have the Right People on Your Team?
Some federal construction projects have specific roles and org chart requirements for a project. Knowing key personnel, government personnel involvement, subcontract personnel, and their duties and lines of authority is a must.
6. Safety, Quality, and Environmental Requirements
There are seemingly endless inspections, reporting formats, miscellaneous requirements, and required software related to safety, quality, and environmental concerns. The right people, processes, and systems must be in place to accurately produce, manage, and submit these projects in a timely manner for a federal construction project.
7. Schedule Maintenance and Delay Analysis
The government wants projects completed on time. If a project is delayed, they want to know why and schedule adjustments promptly. Do you know all the reports required within each schedule update?
8. RFIs, Modifications, and Time Extensions
Challenges will arise. Is your team ready to handle them, communicate effectively with the governing authorities, and have the resources to work through the delays?
9. Project Cash Flow
Federal construction projects can be quite enticing with their big budgets, but it is important to understand that big budgets come with strings attached.
As with any project, it is imperative that you know your numbers and build in enough margin to account for inflation, supply chain issues, weather, and other known, and unknown impacts that may negatively impact the project budget.
10. Know when and how to request a REA (Request for Equitable Adjustment)
A Request for Equitable Adjustment (REA) is an official request from a contractor requesting an equitable change to the contract price based on a change to the contract requirements. In many cases, this happens when an unanticipated issue arises during the contract negotiation process.
Knowing what can be included in a REA and when to present it is crucial if you want a positive outcome.
You Can Proceed With Confidence
Bidding on a federal construction project is a difficult, time-consuming process.
Our experienced team of construction experts and consultants have logged thousands of hours working with clients to help them earn and deliver federal construction projects successfully.
ACE can help you navigate the process of bidding on a federal project and work alongside you to deliver it profitably and with excellence.
Contact us today to learn more about how we can help you bid on and manage federal construction projects.