How To Deal With Government Contract Scammers

You are new to the government contracting industry and someone sent you an email saying they have a contract for you, what do you do? It may sound exciting but you should watch out for Government Contract Scammers.

Oftentimes, people don’t ever think this could happen to them but let me tell you this, It happened to me! Someone sent an email directly to me, claiming they have a contract to offer.

It also happened to one of our very own GovCon Giant, Dionne. Dionne Almost Got Scammed Out of $90K. That’s ninety thousand dollars! So, Yes. it’s real and it’s happening. 

This has been happening to tens of thousands of people out there, and I want to raise awareness and hopefully, save people from falling for this scam. 

HOW SCAMMERS DO IT

What usually happens is that these scammers will send you emails, presenting themselves as contracting people, offering you a contract opportunity. 

To give you a more specific example, here’s a portion of Dione’s email to me, narrating what had happened:

“I received what looked like a legit RFQ from Dr. John Farrell at the US Arctic Research Commission. Since that didn’t sound like a real agency, I looked it up. Turns out Dr. John Farrell was the Ex-Director and I placed my bid. Someone (claiming to be Dr. Farrell) called me to let me know he’d sent a PO.”

Dione actually began the process of getting $90,000+ worth of electronics together. When the first of the orders arrived at the destination specified on the PO, to Dione’s surprise, the recipient had no knowledge of the purchase.  She eventually got a call from an FBI agent saying that it was all a scam.

This is the dark side of the government contracting world that I want you to know about because no one seems to be talking about it.

HOW TO AVOID BEING SCAMMED 

If you haven’t done anything that would result in a contract offer or opportunity via email, like registered your name on a specific list, attended an industry event, and the like, you have to be very cautious.

No one is reaching out to you to give unsolicited contracts unless you’ve done something to make them do so. 

Although it could be a legitimate contract opportunity, you should treat these types of emails as a possible scam. To avoid being scammed, follow these steps:

1. Make Sure The Email Checks Out

When you click reply all, make sure the email checks out. The email contents, usually, mention the other person’s name and contact details, such as email address and contact number. So, you should double-check, whether the email address matches.

Sometimes these scammers are very wise because they follow the contracting person’s real email but add one or two symbols or numbers to it, and it could be easily overlooked. 

For example, if the legitimate email address is [email protected], the scammer will follow the email address but add 1 to it, [email protected].

Also, it’s important to note that some of these scammers claim that they are small business specialists, and you should know that small business specialists don’t email people contracts. They never do that! So, that in itself is a red flag.

2. Go To The Agency’s Website

If the email checks out, go to the agency’s official website and check whether the person’s name is found there. Also, check if the contact details on the website match what’s mentioned in the email. 

3. Call the Contact Information Found on the Agency’s Official Website

So, if you found yourself ticking all the “not a scammer” boxes, the last thing you should do to really make sure that the opportunity is legitimate is by calling or emailing the person’s contact information found on the agency’s official website.

You could skip all the steps before this one, and just contact the person immediately but to avoid bothering the busy contracting person, it would be more ideal to contact them, when you’ve double-checked everything. 

Do not use the contact information in the email provided but use the one that’s stated on the official agency website because anyone can create links, including the scammers. 

RESOURCES

If you want to learn more about Government Contracting and how to deal with scammers, then be sure to click the resources below. You can also visit the GovCon Giant website or the new GovCon Edu, where you know everything about government contracting!

Someone Sent Me a Contract Directly! How Do I bid  It?

https://www.youtube.com/watch?v=dIhIkL8z2_4&t=94s

SOURCES SOUGHT: NIH CC Sources Sought Notice – Epidemiology and Biostatistics Research Services

Responses of any form are not offers and the Government is under no obligation to award a contract as a result of this announcement. No funds are available to pay for preparation of responses to this announcement. Any information submitted by Respondents to this notice is strictly voluntary. Responses will not be returned to the Responder. Not responding to this notice does not preclude participation in any future Request for Quote (RFQ), Invitation for Bid (IFB), Request for Proposal (RFP), if any issued. If a Solicitation is released, it will be released via the Government-Wide Point of Entry (GPE). It is the responsibility of potential Offerors to monitor the GPE for additional information pertaining to this requirement.

  • Original Set Aside: 8(a) Set-Aside (FAR 19.8)
  • Product Service Code: R405 – SUPPORT- PROFESSIONAL: OPERATIONS RESEARCH/QUANTITATIVE ANALYSIS
  • NAICS Code: 541990 – All Other Professional, Scientific, and Technical Services
  • Place of Performance: Rockville , MD 20852 USA
  • Original Response Date: Apr 30, 2021 12:00 pm EDT

Full details via beta.sam.gov


govcon logo Check out our RESOURCES page for a sample letter that we use in response to government market research.

SOURCES SOUGHT: Powered and Unpowered Exoskeletons for Human Performance Augmentation During Maneuver or Logistics Support Activities

THIS IS A REQUEST FOR INFORMATION (RFI) ONLY for Powered or Unpowered exoskeletons which are capable of meeting the basic requirements described below. This is not a Request for Quotation (RFQ), Request for Proposal (RFP), or an Invitation for Bid (IFB). It is a market research tool being used to determine the availability and adequacy of potential sources for planning purposes only. Responses to this notice are not considered as offers and cannot be accepted by the Government to form a binding contract. The Government does not intend to award a contract on the basis of responses nor otherwise pay for the preparation of any information presented or the use of any such information. Any information and/or samples submitted may not be returned, and no payment will be made by the Government.

  • Original Set Aside:
  • Product Service Code: AC12 – National Defense R&D Services; Department of Defense – Military; Applied Research
  • NAICS Code: 541715 – Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
  • Place of Performance: Natick, MA 01760 USA
  • Original Response Date: Mar 12, 2021, 06:00 pm EST

Full details via beta.sam.gov


govcon giants logo Check out our RESOURCES page for a sample letter that we use in response to government market research.

Proposal writing, responding to a beta.sam RFP, RFQ

We get it! You are a small business just getting started in the federal market. And you just put up with your first gigantic proposal that is quite overwhelming especially if you’ve never seen a federal Request for Proposals (RFP) or Request for Quotes (RFQ) before.

However, you don’t have to worry as in this article. We’ll take a look at the solicitation structure and on how we can make it easier for you to navigate and determine whether or not you should proceed with pursuing the RFP/RFQ.

THE SOLICITATION STRUCTURE

Today, we’ll be breaking down the solicitation structure into four parts. However, please be advised that although this applies to the majority of solicitation, it’s not a one-size-fits-all solution. 

But with the majority of RFPs out there, especially if you go on Fedbizopps or any other bids sites that you are looking for actual solicitation. This will be an informative and helpful guide to know where to look and what each element means.

With that said, let’s start off with part one of the actual solicitation schedule. Again, the solicitation is broken into four parts.

The first part is called the Schedule. This where you’re going to have several sections that correspond to a specific element. These sections are:

 

  • Section A is the actual solicitation. 
  • Section B talks about the price and Fee Schedule.
  • Section C is the scope of work.
  • Section D packaging and marketing.
  • Section E is about inspection acceptance.
  • Section F is for deliverables or performance.
  • Section G is for your contract administration data, 
  • Section H special contract requirements.
  • Section I is for Contract Clauses
  • Section J is for List of Attachments
  • Section K is Representations, Certifications
  • Section L is Instructions, Conditions, and Notices to Offerors
  • Section M is Evaluation Factors for Award 

Don’t worry, we’re going to touch base on every single one of these sections later on. However, let’s continue with the other parts.

Part two in the solicitation is going to cover your Actual Contract Clauses. Part three is your list of documents, attachments, exhibits. And part four is about representations and certifications. 

Section A – Actual Solicitation and Contract Form

So let’s talk about part one section A, the actual solicitation and contract form. This is the very first page that you’re going to see when you pull down one of these monstrous or lengthy Requests for Proposals/RFPs.

When you look at the first page it may include the actual solicitation. It’s gonna have on it the details on whoever placed the offer up. This will include the agency’s name, their address, and contact information

If you are the one who submitted the RFP, you will find there the standard boxes that are going to ask for your information and you’re gonna have to fill those out.

It will also include the signature page where you sign the delivery location, the proposal due date, and other requirements.

Section B –  Price and Fee Schedule

Section B is typically found right after the first page. Depending on how long Section A is, what immediately follows should be the prices and fee schedule.

Most of us are familiar with Section B because we go straight away to this part as we’d want to know what the government’s price cap is. What they’d do on the government’s or on the federal side, they’d refer to these prices as CLIN or Contract Line Item Numbers.

A CLIN is a line that simply means that the lists of the services and products to be delivered must not exceed a particular price. 

Also, Section B is where you’re going to find a brief description of the actual supplies and the services along with that clin number.

And others usually tell you about the quantity in terms of units and then the price per unit they’d want. And when you add it together, it’ll give you a total and then you sum that total for a number of CLIN.

Section C – Scope of Work

Here in Section C, this where the RFP will have the scope of work description, specs, things like that. It usually fits a small section that doesn’t require an attachment. But if it’s a larger spec section let’s say 30, 40, 50, pages long.

They may take it and create a separate document and it is just referenced that they read for attachment.

To clarify, this Section C is where you’re gonna find exactly what it is that the government wants you to do. And what is it that they’re looking for.

We want to point out that Section C can be confusing. Because when you’re looking through this section, the samples you’ll find on the internet will differ from the actual words on the a proper RFP.Be mindful that sometimes it’s not going to just pop out like it’s not bold or all uppercase letters or underline the actual section header is a smaller font and it’s less. And it might be  a lot of you guys out there you may find when you’re scrolling through all this stuff you don’t notice where the sections start and end.

The sections will just kind of intertwine with previous sections and if you’re not careful you won’t even notice where they start and stop.

Section D – Packaging and Marking

This section is typically not used but that’s what it covers are special instructions for packaging and markings. There’s nothing much to discuss on this part.

Section E – Inspection Acceptance

Section E is a very important section because this part will talk about the quality requirements. Basically, this is where the government specifies what they are looking for in the materials in order to approve your payment.

Equate inspection acceptance to money. If you do meet the criteria specified in this part. The products you deliver to the government will be rejected and when it does, you won’t get paid.

So you have to make sure that when you’re negotiating the prices from your suppliers or vendors. They must follow and ensure that they meet the minimum requirements so when your products have been inspected. It will be approved or accepted and so that you guys can get paid.

This is usually the part where you talk about the notice of completing task orders. You have to tell them where they’re gonna be delivered and how it’s going to be delivered and things like that.

Section F – Deliveries or Performance

This section talks about the place of performance or where it is going to be done, the period of performance or the timeframe. Also, this will also mention any liquidated damages/.

If you don’t know what liquidated damages are. It’s like when you delay the project, the government charges you with a penalty.If you delay the project with the government, this section will cover how they may charge you a thousand dollars a day, or five hundred dollars a day for the delays.

So that’s liquidated damages. It tells you the scope of what triggers stop work orders and then it also tells you that if it’s the other way around. And the government happens to delay you. The implications will also be included on how you can recoup your lost time, money, efforts.

Section G – Contract AdministrationThis part covers information on accounting data, so for example, let’s say when you get the project. Section G will cover how you will receive your payment.  It can discuss whether you are gonna do invoicing. Or if you can do credit card payments.

To keep it simple, it will provide the terms and mode of payment that you can expect.

Section H – Special Contract Requirements

In this section, it will talk about safety regulations, fire protection, energy conservation and the like. You must make sure that you have fulfilled the insurance requirements and liability before you bid on this project.

Why? For those who are starting out. This section is a great way to assess your company.This is where you can look at what type of things you need to have in place if you are looking to pursue this project.

And again, this section is one way to find out whether you are ready or eligible to participate in these solicitations.

Section I – Contract Clauses 

This is standard stuff but to give you an example. If you have a product that needs to be imported from another country. You have to make sure that the clause doesn’t preclude or exclude that country like a “Do not Buy Lists”.

Section J – List of Attachments

For us, this section is gonna be one of the most important part as this will include the Department of Labor wage determination or also known as the Davis-Bacon wage act.

This particular section states how we’re supposed to pay the people who work on that job site. This is very important in essence because we need to know if our subcontractors get this particular wage rate.

So when they’re doing their payroll and they’re paying their people. They must comply with the government’s minimum standards.

Section K – Representation and Certifications

To be entirely honest, we don’t know why the federal government contracting continues this particular section in their projects.

This section can be confusing at times as it can be twenty to thirty pages long. But at the very beginning when you read the instructions carefully.

It says if you are registered in Sam then there’s no reason to include your reps and certs. So again when you’re reading through a proposal when you’re getting ready to submit make sure that you clearly understand what are the requirements for this project.

Because sometimes, they’ll tell you that it’s not needed if you’re already registered and Sam. But in most instances, if you are already registered in Sam then you don’t need to include this particular section.

Section L – Instructions, Conditions and Notices to Offerors

Section L is super important. This is your instructions, condition, and notices to offerors. Basically, this is talking about how the government is going to determine the best value of your approach and submissions.

 

Section M – Evaluation Factors for Awards

Just to share, whenever we get one of these RFPs and are getting ready to bid. The first two sections we look at are Section L and M.

Why? 

This is because we want to know if there’s an actual upcoming bid or meetings that we can go to in order to see the project. Because, we would hate to pool our resources on a project that we may have already gotten late. 

Because maybe, by the time we got wind of this project. A week has already passed by. However, visiting Section L, can help you determine the pre-proposal date. 

This is why we jump immediately to sections L and M because we want to know first of all when it’s the pre-bid date or pre-proposal date.

The other thing is that we want to know the criteria that the government is going to use to determine whether or not someone a company is eligible to participate. And that is the most important factor when you’re starting this thing out. Whether or not one is eligible.

DO YOU MEET THE MINIMUM REQUIREMENT?

Is your team eligible? Is your company eligible to participate? Do you meet the minimum requirements that the government’s asking for in order to be deemed acceptable to submit a bid or proposal on this?

Now, the government will not tell you whether or not you’re accepted but what they’re gonna tell you is how they rate the companies.

And so, if you’re rating isn’t high on this. Then it may be time for you to decide to make this one a “no- goal” and then spend your time doing another particular type of proposal.

But what we’d like for you to avoid is that. Others will go through the entire piece of this project first. They start getting prices and negotiate with their vendors but at the very end because this section is towards the very end. They’ll realize that they were not eligible in the first place to actually even bid the job.

So what you need to do before doing all those technicalities, is to find out immediately if you are eligible. 

Because for example, the government may ask for two years of past performance of doing this task. They might ask for you to show your history, your project size experience and more.

And if it’s historical, they may want to show you work in a historical venue. Or if it’s something like filming they want to make sure you use these types of cameras, this type of equipment.

So again, you’re gonna have to demonstrate your past history. And this is helpful as form the very beginning, you can determine if you have this particular eligibility.

So do we have this on our team? If not, then All right!Do we want to bring in a subcontractor that has this requirement, yes or no?Do we want to partner with another company and form an arrangement, yes or no?

Do we have someone on our side that has this requirement?

So again and knowing this information up front is tremendously valuable for everyone. As opposed to spending a whole lot of time putting together numbers and requesting bids from our subcontractors or suppliers or vendors but one isn’t even able to meet the requirements.

And so Sections, L and M is a very highly productive use of your energy and time when deciding to pursue a bid.

CONCLUSION

To recap the key elements of the solicitation. Section C, which is your performance work statement. Section L, proposal instructions and evaluation criteria.

Also make sure you check out any other sections for requirements, a lot of times they’ll have on their supplemental documents and the actual packages on other areas.

Lastly, if you decide that you’re going to do this. Your proposal outline must follow exactly the letter of the law that they’ve stated in Section M.

When you’ve put together a proposal and they say you have to format them in A, B, C, D, E. Make sure you write A, B, C, D, E.

If they want 1, 2, 3, 4, 5, make sure you write 1, 2, 3, 4, 5.Treat them as if they’re a bunch of robots. If they don’t see in there they’re the things that they’re laid out in the exact format that they’ve explicitly stated. Then it can disqualify you or you’re going to score really low on their rankings.

But, the federal government does this because if you look at it from their standpoint. They are evaluating tens of proposals and what better way to properly understand them is when they are all uniformed and consistent.

So do not stray away from the format that they explicitly state they want because it’s going to make it harder or more difficult for them to read.

As a parting note, remember Section M and section L, these sections are your friends. When you get one of these things and you pull it down make sure you understand and comply with these two sections before you go any further.