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Bidding on Government Contracts?
Lets assume for a second that I have a business that has absolutely no money. Okay, maybe $10 in a bank account. I notice a Government contact for "Seven (7) riding mules for Grand Canyon Natoinal Park". --- Can I submit my bid (Lets Assume $10,000) and if I win that contract, can I run to my local bank, show them my approved contract, get a loan for say $5,000 to go buy Mules, turn them over to the Government, then pay off the loan to the bank, netting $5,000 in the process? I mean, does (a) the Government really care if you are big or small or have any history with your business and bid? And (b) does the bank view a signed contract as money in the bank and would be willing to issue a loan with that contract as collateral?
Public Comments
- There are a lot of theoreticals here but you might be able to pull this off. For some contract types you will be required to post a bond to the agency you would be working with that you can deliver. How you would stack up against other bidders is anyone's guess. As far as a bank taking a US government contract as collateral, that is doubtful as there is no way for them to perfect their interest. They first would look to your credit to establish a loan.
