Product sellers feel the fourth quarter in their supply chains. Orders arrive in clusters, distributors run low on popular items and manufacturers’ lead times stretch just as buyers are asking for delivery before the end of September. A delivery date in a federal order is a contractual commitment, and the way you handle lead times, backorders and substitutions can determine whether a year-end order turns into a repeat customer or a problem. This is general information; read your order’s terms and talk to a professional about specific situations.
Quote lead times you can keep
The quote is where most delivery problems begin. Before committing to a date, confirm availability and lead time with your supplier in writing, especially for items you resell. State delivery in the form the request asks for, such as a date or a number of days after receipt of order, and say whether partial shipments are possible. If the buyer’s requested date cannot be met, say so in the quote and offer the earliest date you can support. A buyer would rather plan around an honest date than be surprised by a missed one.
When a backorder hits after award
Notify the contracting officer, or the ordering official named in the order, in writing as soon as you learn that a delivery is at risk, and before the date passes. Explain the cause, the expected delivery date and what you are doing to recover. The government may agree to revise the schedule by modification, accept a partial shipment if the order allows it, or decide to cancel and buy elsewhere. What it cannot do is make a decision it does not know is needed.
Commercial contracts generally excuse delays caused by occurrences beyond the contractor’s reasonable control and without its fault or negligence, such as fires, floods, epidemics, strikes, unusually severe weather or delays of common carriers, provided the contractor gives written notice as soon as reasonably possible. A supplier’s failure is often not excusable, however, unless it was beyond the control of both you and the supplier and the items could not be obtained elsewhere in time. Plan as though supply problems are your risk, because they usually are.
Substitutions require written approval
When the ordered item is unavailable, a vendor may be tempted to ship a similar or newer model. Do not do this on your own. The government is generally entitled to receive exactly what it ordered, and changes to a contract’s terms require written agreement. A substitute item, even a better one, can be rejected at delivery, leaving you with return shipping, a late delivery and an unhappy buyer.
- Describe the proposed substitute in writing, with part numbers, specifications and any price difference.
- Explain how it meets or exceeds the requirement, including any brand name or salient characteristics in the order.
- Confirm that country-of-origin and other compliance requirements are still met by the substitute.
- Wait for a written modification or approval from someone with authority before shipping.
Protecting the relationship
Late deliveries can lead to termination and a poor performance record, but most problems handled early and honestly are resolved without either. Keep a written record of every delivery conversation, confirm verbal agreements by email and follow up after delivery to make sure the item was received and accepted. The FAR’s commercial contract terms, including the excusable delays provision, are in Parts 12 and 52 at acquisition.gov.