Why slowing down saves contracts

In government contracting, the difference between profit and loss often comes down to one thing: ATTENTION TO DETAIL.

Too many businesses lose money - or worse, lose contracts - because they rush into bidding without carefully reviewing the RFQ. Before you hit submit, take a step back and make sure you’ve checked the fine print.

Here are the four details we always review before placing a bid with the Defense Logistics Agency (DLA).

1. FOB Terms – Who pays for shipping?

  • FOB Origin → The government pays for shipping once the item leaves your facility.
  • FOB Destination → You’re responsible for shipping costs until the item arrives at its end destination.

Mix this up, and you could end up covering unexpected shipping expenses that wipe out your margin.

2. Inspection Location – Who signs off?

  • Inspection at Origin → The DCMA (Defense Contract Management Agency) must inspect and approve items at your facility before shipment. This adds time and coordination.
  • Inspection at Destination → The DLA inspects items after delivery, which is usually simpler for the contractor.

Not knowing the difference can delay shipments and create compliance headaches.

3. RQ001 Clause – Higher-level quality requirements

If you see RQ001 “Tailored Higher-Level Contract Quality Requirements” in the RFQ, the contract requires a quality system equivalent to ISO 9001 or AS9100.

This doesn’t always mean you need formal certification, but you must have documented systems in place. Miss this, and you risk being non-compliant.

4. PR Number – One-time buy vs. ongoing contract

Look at the PR (Purchase Request) number carefully:

  • Starts with 700 → One-time buy.
  • Starts with 100 → Indefinite Delivery/Indefinite Quantity (IDIQ), which requires careful long-term pricing strategies.

Many businesses misprice IDIQ contracts by treating them like one-time buys and end up locked into unprofitable deals.

The bottom line

Government contracting rewards the businesses that pay attention. Before you bid, slow down and confirm:

  • Who pays for shipping
  • Where inspection happens
  • Whether higher-level quality requirements apply
  • If the PR number signals a one-time buy or an IDIQ

These small checks protect your bids, your profit margins, and your reputation with the DLA.

Want help catching these details faster?
GovScraper pulls and organizes RFQs, flags critical clauses, and helps you avoid costly mistakes before you bid.
Book a demo today to see how we make RFQ review easier and safer.