Government Contracting Officers are required to make a determination that a contractor is “responsible” before awarding a contract. Part of this determination requires a review of the contractor’s financial capability. (FAR 9.104(a))
Kevin and Paul discuss why it is important for Government Contracting Officers to carefully review their bidder’s financial capabilities (especially for small businesses) and be cognizant of when an acquisition strategy may encourage companies to bid above their weight class. (which introduces risk). Industry should also understand how the Government evaluates financial responsibility and how to be prepared to pass this test.