If the contractor fails to perform and produce the promised product or results on time and/or within budget, it could result in any of the following:  

• Civil actions
• Criminal actions
• Financial consequences

The responsible party would be the administrators, university, or other involved parties. Contracting with the government  from formation through administration is a very regulated process. If you’re not aware of all the rules and regulations, you can suffer serious consequences. It’s not like commercial contracting, which is generally governed by common law and the uniform commercial code. Federal government contracts are governed by a complex maze of regulations and statutes.

Examples of regulatory and statutory provisions and what they specify include the following:

• The process or method an agency uses to solicit contracts
• How the agency can negotiate or award a contract 
• The costs the government will reimburse, if any, and the circumstances under which they’re reimbursed 
• How a contractor accounts for those costs

The government imposes some socioeconomic obligations on its contracts, including requirements related to the following: 

• Drug-free workplaces
• Affirmative action
• Subcontracting
• Minimum wage

Congress has made the contracting process easier to decrease the burdens on contractors wishing to offer commercial services and products. However, anyone who wants to enter into a government contract should proceed carefully.