- Advocacy & Policy
- Research Center
Friendly card games are often governed by rules agreed to by the players around the table. If a player suggests a modification – such as a wild card – it can become part of the “house rules.” On the other hand, the world of tournament poker is governed by stringent, standardized rules that also enumerate the penalties for various infractions. The higher the stakes, the less flexible the rules become.
Government contracting is also a high-stakes business, but the business of government contracting is far and away different from high-stakes gambling. In the government marketplace, companies try to estimate the financial risks of doing business on large, complex contracts that might require major, multi-year investments of time, technology and personnel. If contractors understand the rules of the game, they can make more accurate estimates and negotiate terms that are fair for them and the customer. But if a company underestimates the amount of financial risk, it can be ruinous.
© 2011 Washington Business Journal