Government Contract Terms
After the government has selected a bid on a project, a contract will be formed. This agreement contains terms that dictate if and who the contractor can subcontract to, the quality of the requested service or product, and more. When the whole process is finalized, the authorities receives the good or service in an ideal condition and at the best value.
Commitment terms allow the government to clearly define what they want from the company and any limitations on the contractor. In addition to ensuring it gets the best deal on services, these terms are also used to promote policy objectives such as supporting veteran and minority-owned businesses.
Contract terms often increase the cost for the contractor to complete the job. In cases of fraud, an unscrupulous company will sometimes make decisions to increase their profits by choosing cheaper methods to complete the assignment. This can lead to the finished service or product not meeting the terms they have agreed on.