“Partnership” and “dialogue” are just two words industry and government like to use to describe how contractors support government missions.  To be sure, government agencies rely on contractors for critical functions.  No company should ever be deceived, though, that theirs is an equal partnership.  Here are some examples of this reality that every contractor needs to keep in mind:

1. No one is entitled to a government contract. Companies are entitled to compete for contracts, but no company is entitled to perpetual status as a government contractor.  The government has the last word on whether they believe you qualify.  If the government decides “no”, they may not even have to tell you why they arrived at that decision.
2. The government decides if your prices or costs are fair and reasonable. Companies provide the data, and whoa be it to any company that does not execute this correctly, but the government ultimately decides whether those prices or costs are reasonable.  If not, your company may not get a contract (see #1).
3. Your contract can be terminated for convenience. Even if you make it to contract award, the government can typically end your contract if doing so is in its best interest.  While convenience terminations can’t be capricious, the government agency usually gets the benefit of the doubt in any uncertain situation.  You don’t have to lower your price, but they don’t have to continue your contract.
4. The government decides if you (both individuals and companies) are suspended or debarred. Fail to perform on contracts?  Get accused of bribing a government official?  Commit fraud?  These are just three examples of actions that can end up placing both people and companies in front of suspension or debarment officials.  If the government decides you’re in “time out”, that’s where you are.

While day-to-day government business may run smoothly, it always pays to know what party has the upper hand.  It’s not industry.