An article I read earlier this year published by GovCon Brief – on recovering proposal costs in bid protests – reminded me of the importance in allocating these costs in contracting parties’ pre-award agreements.
Primes and subs who first work as teaming partners in the proposal preparation stage will want to ensure that they identify under what circumstances, if any, a party is responsible for the other party’s costs associated with the partnership. For instance, the entity that is going to receive the subcontract upon the government’s award may want to include that it will be reimbursed its proposal costs if the government does not approve it as a subcontractor or the parties cannot agree to the terms of and therefore enter into a subcontract agreement.
Our government contracts posts are published by Attorney Kristi Morgan Aronica. She serves as litigation counsel to prime contractors and subcontractors in the government contracts market throughout Texas and nationally.