How to Stay Compliant with Federal Regulations as a Contractor

Tamanisha
5 days ago
2 min read

Winning a government contract is only half the battle — staying compliant is what keeps your business eligible, reputable, and profitable.

If you're a small business or first-time contractor, here’s a no-fluff checklist to help you protect your federal contracts and avoid costly missteps:

1. Understand the Rules You’re Playing By

The Federal Acquisition Regulation (FAR) is your new rulebook.

FAR governs all federal contracts — knowing it is non-negotiable.
Some agencies (like DoD or GSA) have supplemental regulations — always check your contract’s fine print.

2. Stay Registered and Accurate

Your government identity must be active and current.

Get a Unique Entity Identifier (UEI) — it replaces the old DUNS number.
Register in SAM.gov — and renew annually to stay eligible.
Double-check your NAICS codes, contact info, and certifications for accuracy.

3. Comply with Labor & Performance Standards

You’re responsible for how work gets done — not just that it’s done.

Follow laws like the Service Contract Act and Fair Labor Standards Act (FLSA) on wages, hours, and worker safety.
Know performance rules:
- Service contracts: Perform at least 50% of labor with your team.
- Construction: Between 15–25%, depending on the contract type.

4. Follow Non-Discrimination and Affirmative Action Policies

Inclusion is required — not optional.

Maintain policies that align with federal non-discrimination laws.
Affirmative action compliance is expected, especially if your business grows past 50 employees.

5. Build a Compliance Program

Don’t wing it — systematize it.

Write formal policies and procedures.
Train employees so they understand their responsibilities.
Run internal audits to catch and fix issues early.

6. Document Everything

In federal contracting, if it’s not documented — it didn’t happen.

Keep records of invoices, contracts, payroll, training, and audits.
Maintain these for at least 3–6 years, depending on the regulation.

7. Stay Current and Seek Support

Rules evolve. So should your awareness.

Sign up for updates from SBA, FAR Council, and industry newsletters.
Use SBA resources, PTACs (Procurement Technical Assistance Centers), or a consultant like TMC Consult Group to stay ahead of the curve.

Bottom Line:

Compliance isn’t a checkbox — it’s a business discipline.

By understanding the regulations, staying registered, tracking your labor, and building a proactive compliance system, you protect your reputation and position your business for long-term federal success.