(Editor’s Note. As all firms know, the ability to generate cash is a critical key to success. All successful businesses have found their own unique ways to expedite cash generation. Our work with a wide variety of government contractors has led us to the conclusion there are common factors that are fairly unique to government contractors’ efforts to improve cash flow no matter what type of product or service the firm sells to the government. We had been considering putting our experiences to paper on this topic when we came across a recent article by Glenn Sweatt, general counsel for Environmental Chemical Corp., in the May issue of Contract Management that sets forth some of the unique considerations government contractors face when they want to improve their cash flow. This article is based on Mr. Sweatt’s insights and our experience.)

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