Mentoring, Partnering, Sub-Contracting. No matter what you call it, it is evident that more and more contracts are calling for companies to work together to fulfill the demands of their contracts. With contract bundling and multi-task contracting becoming key buzz words within the Service Contracting community, more and more companies are joining together to fulfill the requirements of these contracts. It is important under this strategy that we do not lose sight of another key word - Compliance.
For the past 35 years, companies have struggled with understanding and monitoring their obligations under the Service Contract Act. Many within these companies have become experts in understanding the nuances of the Department of Labor regulations and have found creative ways to make these regulations fit efficiently within their business plans. They then throw all of this away by partnering with a company that is not so diligent in creating systems or monitoring their compliance.
Think about it, when was the last time you asked your partners to show proof of SCA Compliance? Have you ever? More and more, we are seeing problems with how a subcontractor discharges their fringe obligations. These are not necessarily deliberate infractions, but the damage to your contract exists just the same. Beyond compliance, also consider costs. Are you getting the maximum value out of your partners? Could you benefit by mandating that they adhere to certain strategies that would help everyone be more efficient on the contract?
Keep in mind the other huge benefit to a well thought out strategy. By planning accordingly, employees working side by side, even for different employers, will be treated equally, thus creating greater morale within your workforce, which leads to the obvious results of less turnover and fewer grievances.
When developing a partnering strategy, it is essential that contractors discuss the Service Contract Act. By planning ahead during the bid process, or at least during the implementation period, contractors will set themselves up for fewer headaches and greater successes on their contracts.