Government Contracting

Government Contracting

Introduction

A contract is any legal relationship or a mutually bond that obligates the seller to furnish the services or supplies and the buyer to pay for them. Government contracts include all type of commitments that obligate the government to an expenditure of appropriated funds that are in writing and that except as otherwise authorized. Government contracting and private parties contracting have the same elements of contracting. These elements may include: a lawful purpose, an offer and an acceptance of the offer, competent contracting parties, mutuality of obligation and consideration.

Discussion

The expenditure of the public funds is involved in Government contracting. A great deal of accountability and transparency is required by the government contracting. The authority is in the hands of the federal government through constitution which has the authority to allow the contractors to enter into contract. Legislation is passed by the congress to provide the funds that defines the process and additional legislation.

Federal common law is governing the Government contracts. Federal common law is different and distinct from the body of law familiar to businesses. The Uniform Commercial Code and the general law of contracts might be included as a part of this. Legislation can modify these common laws and can diverge between the states. Federal common law governs the prime contractors. Contract law governs the prime contractors and its sub contractors. The prime contractor can therefore be squeezed sometimes from the differences in the laws.

A broad range of contract terms are much freer to establish by mutual consent among private parties entering into a contract; than the parties entering into contract with the federal government. The interests are represented by each private party and they can obligate them in any lawful manner they need. Government contracting allows the creation of the most of contracts among the parties through mutual consent. However, some other federal contracts are controlled by law in commercial contracting. In such contracts use of prescribed provisions and clauses is legal. Government agents require a specific regulatory authority to enter a contract in government contracting. Statutes and regulations control agent's bargaining authority. A warrant or public document is required as an authority for the government contracting agent which should be reviewed by the person dealing with the agent. The government contracting agent has no authority to violate the warrant and deviate from the laws and regulations that controlled by the federal government contracts. The limitations of government contracting agent must be known to a private contracting party. The parties making the contracts have a great freedom towards the contracting agent who is responsible to manage the contract under the laws and regulations among the actual authority and party executing the contract.

There are some effective steps to run through government contracting. The past performance and knowledge is really important to government about the parties entering into contract. The parties entering into contract should be in business and familiar with the industry in order to achieve the capital and bonding through the ...