Federal Contract Law Firm Assists Clients with Progress Payments and Delivery Benchmarking
Government Contract Lawyers Focus on Government Contract Awards
Progress payments are a form of contract financing that are used with fixed price contracts when acquiring non-commercial items. Progress payments are typically included when the contract requirement includes significant time between award and delivery.
Market research is a key factor in the Contracting Officer’s determination if progress payments are appropriate for the subject requirement, and may be in the government’s best interest when the benefits include lower prices, or non-price contract terms and conditions.
Benchmarking
Benchmarking of providers is the practice of making comparisons between providers with the goal of:
- Ensuring continuing value for the money
- Getting better performance
- Improving business practices
A key point to benchmarking is that business risk can never be transferred to the provider. Although the provider failed to deliver, the ultimate responsibility for fulfillment remains with the department.
Benchmarking may involve measuring the provider against the best in their industry, making comparisons between similar processes and comparing prices for similar services. In a long- term service arrangement, benchmarking providers helps to offset the risk of underlying pricing and tariffs getting more and more out of line with market or industry norms. It also helps to identify and prioritize areas for improvement, and some organizations encourage (or even require) prime-contractor providers to benchmark the companies they use as subcontractors.
Contact Our Washington, D.C. Government Contract Law Firm Today
Do you need legal advice regarding progress payments and delivery benchmarking on government contract awards? Contact the Whay Law Firm online or call (202) 448-9677 to schedule your initial consultation with an experienced government contract attorney today.
