Compliance on government contracts begins at the solicitation stage of the contract. Some of my earliest mentors taught me the importance of reading government solicitations two and three times to ensure that the proposal writing team had a clear understanding of expectations and compliance requirements. In essence the first read (every single page) was designed to make certain that the team was clear on contractual obligations such as reporting requirements, payment policies, personnel pre-qualifications, drug screening, medicals, job postings, small business goals, etc. The second review of the solicitation document was to identify costs for maintaining a compliant workforce (which are often not detailed in the solicitation) but required by for security guard firms. The last review of the solicitation was to determine if the statement of work and post requirements could be accomplished in an efficient and effective manner while meeting compliance requirements. The most important part of this review was to take nothing for granted, assume nothing and put all questions in writing to contracting officers requesting clarification on contract, compliance and performance related matters.
Even under the best circumstances, it’s not the contracting officer’s job to ensure that your firm is compliant with local, state and federal laws; in fact many of them are unaware of changing legislation that affects government contracts. In New York City for example, I have yet to see a contract document or a solicitation that addresses the new requirements for paid sick time. Again, just because “paid sick time” is not in the contract documents does not mean that your firm is not obligated to meet the requirements. You may also find other bidders that are willing to take the gamble and not include the paid sick time in their pricing which could make them appear more competitive. Personally, I run far away from these types of contracts – not worth it!
At JKA, our team (includes accountant, attorney and HR consultant) has developed a list of best practices to ensure contractual and regulatory compliance for security guard firms that include the following:
- Detailed review of all bids, proposal and contracts creating detailed questions regarding any potential compliance issues. All questions must be directed to contracting officer and addressed in writing.
- Regular compliance reviews and updates for the licensing, training and registration of security officers. Frequent changes with little or no notice to contractors.
- Recommendations for reimbursement to officers for on the job training, registration and license fees based on contractual and other regulatory requirements.
- Carefully review bids, proposals and solicitation documents for language pertaining to Equal Opportunity Employment, Small Business Contracting, MWBE Participation, Affirmative Action Office of Federal Contracting Compliance (OFCCP) reporting requirements.
- Invite members of your operations, human resources and support teams to participate in the RFP response process. Your support teams can often provide insight into the realities of executing contract requirements that can save you time, money and resources while addressing potential compliance issues.
- Have solicitation documents and contracts reviewed by an attorney.
- Consistently provide training for front-line managers, receptionists, supervisors and HR staff to ensure compliance with mandatory training as well as training that supports the company’s mission for a compliant workforce.
- Create a detailed matrix identifying all compliance milestones. Stewardship of the compliance matrix should be maintained independently with parties that do not have a direct interest contracts or operations.
- Independent third party audits performed periodically that includes a review of all policies, procedures, post orders, employee notifications, and onboarding process and personnel files.
- Review of supporting documents and forms such as employment applications, policies, procedures, and post orders by an attorney/HR professional to ensure compliance with contractual and regulatory obligations.
To learn more about Compliance for Locally Based Security Guard firms, please join me and panel of subject matter experts at the ASIS NYC Conference & Expo on March 13th at the Jacob Javits Center.
