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Page 32 — COLORADO REAL ESTATE JOURNAL — March 18-March 31, 2015
REAL ESTATE TAX EXPERTISE
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Law & Accounting
T he federal government
spends trillions of dol-
lars annually for a wide
range of goods and services to
meet mission needs. Current
events indicate that one poten-
tial factor in the recovering
economy will include stable or
increasing government procure-
ment budgets. Construction and
construction-related activity is a
very large part of the govern-
ment’s budget and recovery
plans, including here in Colo-
rado. In addition, along with the
current depletion of the spare
parts inventory for the mili-
tary, technology advancements
require up-to-date development
programs and a consistent focus
on maintaining our lead in state-
of-the-art equipment. Finally, the
government must/has become
increasingly reliant on industry
and the commercial markets to
provide the technical expertise
to advance the infrastructure
and the required solutions for
mission success.
While many of the largest
defense companies and govern-
ment contractors have an opera-
tion presence in Colorado, the
majority of existing defense/
government construction proj-
ects, contracting and research-
development opportunities
remain untapped by Colorado
businesses. The doors are open-
ing, particularly in the area of
construction project, remodel-
ing and refurbishment. High-
technology practice areas in
Colorado include, but are not
limited to, energy and construc-
tion, nanotechnology, space and
software development. Colo-
rado businesses, as well as the
state Legislature, are realizing
the vast potential in the gov-
ernment marketplace and the
unique position Colorado has
in becoming a primary state to
provide the government mar-
ketplace with the supplies and
services needed to successfully
accomplish its mission.
Doing business in the fed-
eral or state marketplace has
changed over the years. Past dif-
ficulties have been eliminated
with the new focus on the com-
mercial contractor and smaller
businesses. Please consider the
following FAQs to better under-
stand the current opportunities.
n If a business entity was
considering entering the gov-
e r n m e n t
marketplace
and you
could give
it just one
piece of advice, what would
it be? Do it right. The concept
is simple but the execution can
be more complex if a company
attempts to perform in the gov-
ernment marketplace without
the experience or advice neces-
sary to succeed. Unique skills
are needed because the govern-
ment marketplace is a different
forum than the commercial mar-
ket. A company must recognize,
understand and prepare for
the differences. In order to take
advantage of the many oppor-
tunities when dealing with the
government, the company must
be prepared to understand there
are differences, those differences
can be “handled” and the poten-
tial is worth the focus. In that
regard, it is crucial to have expe-
rienced, qualified professionals
advising you about those unique
requirements when dealing with
the government-contract admin-
istrators, accountants, quality
andmarketing experts, and legal
professionals. It’s not neces-
sary to hire people experienced
in these areas but a company
should have such advisers avail-
able as needed. A government
contract is not just a contract.
In addition, it is important to
look to organizations like the
U.S. Small Business Adminis-
tration and the Department of
Defense’s Procurement Techni-
cal Assistance Centers for help
and guidance on the proper pro-
active approach to government
contracting.
n Once a company wins
a government contract or is
awarded an order, what focus
should it have in completing
its obligation? It’s important
to remember that a company’s
“past performance” is not just a
concept but rather an important
element of success. While there
is no such thing as a perfect
contract, careful administration,
timely performance, quality
work and accurate accounting
are essential to securing an out-
standing performance evalua-
tion. The manner in which a
company performs and how its
contracts are administered is a
primary factor the government
considers when awarding new
opportunities. Exercising sound
business judgment, even on
those occasions when the com-
pany must seek an equitable
adjustment or relief from the
contracting officer, is important
in avoiding and/or resolving
disputes over the performance
of the contract. Remember, the
government has responsibili-
ties under the contract as well
and must be held accountable.
If approached in a businesslike
manner and supported by the
guiding principles in the reg-
ulations, executive orders and
statutes, the government gener-
ally appreciates an attempt to
resolve issues at the lowest level
and in the quickest amount of
time.
n Is it important to under-
stand the commercial-item
procurement initiative when
dealing with the government?
Federal Acquisition Regulation
Part 12 provides guidelines for
the purchase of “commercial”
supplies and services. Briefly,
the regulation states a prefer-
ence for the acquisition of com-
mercial items and that commer-
cial items shall be acquired to
meet the needs of the agency
whenever they are available. In
addition, the regulation requires
prime contractors and subcon-
tractors at all tiers to incorpo-
rate, to the maximum extent
practicable, commercial items as
components of items supplied
to the government agency. This
initiative is very important for
any business participating in or
considering entering the gov-
ernment marketplace. Having a
product or service designated
as “commercial” affects intellec-
tual property rights, accounting
audits, quality programs, socio-
economic requirements and the
imposition of most of the nor-
mally required terms and condi-
tions.
n Obviously contract terms
and conditions are important,
but how closely should con-
tracts be reviewed? As with all
legal documents, it is important
to understand the terms you are
committing to and your respon-
sibilities under the contract. The
government has responsibilities
also. In addition, over-incorpo-
ration of clauses only creates
opportunity for increased spend-
Richard F. Busch
II, Esq.
Busch Law Firm LLC,
Littleton
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