Free Essay

Federal Contracting

In: Business and Management

Submitted By moe71865
Words 2316
Pages 10
Assignment 5: Federal Contracting Activities and Contract Types
David Moore
Strayer University
Cost and Analysis
BUS 315
Michael Raponi
March 15, 2016

Assignment 5: Federal Contracting Activities and Contract Types

History and Background of Companies Competing for the Contract

Dronnet is an empowering company within the Information Technology industry. The company specializes in using technology to resolve some of the most pertinent issues in the society today. The company has been in operation for less than five years, hence, the classification as a startup company. Regardless, the company has been experiencing positive growth since its establishment and has been able to win at least one major contract from the government. The first contract for the company was the Tanker Contract that has been able to execute with efficiency. The company's workforce or human resource is estimated to be about 25 people, with most of them being technologists. The organization has been praise within its state for contributing to economic development as one of the emerging business employing many people. The success of Dronnet in recent years has been attributed to its good management that places more emphasis on issues such as transparency and accountability. The organization also works on an efficient business model that enables it to manage its costs effectively. As such, most of its products are produced through cost-efficient and environmentally friendly methods.
On the other hand, VectorCal is a well-established organization in the IT industry having been in existence for more than ten years. VectorCal has grown to be one of the industry’s leading organizations. As such, the business has partnered with many other companies throughout its extensive networks in the industry to position itself strategically in the market. The company has built a strong reputation in its location for its contribution ensuring the sustainability of the environment. Besides, VectorCal has been influential in using its position to get lucrative contract deals, with which it has executed with efficiency over the years. The organization has also been experiencing sustained profitability since its inception ten years ago. This points to the fact that it has a strong management as well as a good business model that helps it to promote its core agenda (Lancaster, 2014, p. 1).

Recent Major Contracts Awarded to Both Companies

Dronnet was recently awarded a tanker contract by the federal government. The company heralded the deal at the backdrop of significant improvements in the state concerning job creation from small businesses. This contract was very crucial in helping the company create more jobs for the local youths as well as increasing the scale of its operations. The deal to award Dronnet the contract was announced by the Deputy Secretary of Defense in conjunction with the Acquisition Chief of the Pentagon and senior executives from the Air Force earlier on in the year. Upon unveiling the deal, the government officials indicated that several factors had come into consideration before awarding the firm the lucrative contract. However, the most fundamental aspect of consideration was the costs associated with acquiring the tankers for the military base at the Pentagon. The other crucial factor that came into consideration was the life cycle of the tankers as well as the return on investment for the government from the project.
Dronnet was able to win the contract after much lobbying and advertising to beat off competition from various businesses and companies in the industry (West & Lewis Jr, 2009, p. 1). It had taken about ten years for the company to win a contract of such magnitude from the government. This represented a new beginning for the business ad laying a foundation for further engagements with the government in the future. As a matter of fact, Dronnet was able to beat off competition from other business to win the contract because its NextGen Tanker proved to be more efficient, cost effective, and fuel efficient. The tanker burns fuel at a rate of 20% less in comparison to the EADS B333 Plane.
A previous attempt by the government to award the contract to another firm had resulted in a public scandal that culminated in some officials being relieved of their duties, while those found to be culpable were sentenced to terms in prison. Therefore, there was much caution when applying for this contract given the significant amount of public interest that existed around the contract.
The most recent contract that VectorCal was awarded by the government came about six months ago. When the company won a government contract to install intelligent CCTV cameras in the main cities such as New York. This was aimed at helping the local authorities manage the escalating criminal activities in the identified cities. There was a very competitive process for winning the contract as there were many different companies interested in the whole deal. However, VectorCal was the most preferred company due to its extensive experience in handling surveillance technologies. The organization had previously worked on many other projects of a similar nature and was perceived to be more reliable for executing the major contract from the government.

Types of Contracts for which the companies might be Eligible

Federal procurement contracts are often classified based on three major categories namely fixed price contracts, cost reimbursement contracts, and time material contracts. Fixed price contracts have the same price throughout the duration of the contract. The government department pays the agreed amount regardless of the fluctuations or changes in the costs of executing the contract. Therefore, it is the responsibility of the contracted firm to ensure that it stays within the agreed budget to avoid running into losses at the end of the contract.
On the other hand, cost reimbursement contracts create more room for taking into account different factors such as the actual costs involved in executing the contract. As such, the government will not only pay the price that was agreed upon earlier, but will also reimburse the firm for any other costs that may be incurred during the contract period. There are various schemes that allow for the government to pay feed or profits to the contractor. For instance, there is a Cost Plus Incentive Fee (CPIF) contracts where the contractor is reimbursed for all the costs incurred while executing the contract as well as any additional fees based on an agreed upon formula. The amounts paid as fees often vary, and the number is aimed at motivating the contractor to keep the costs of the contract lower. There is also the Cost Plus Award Fee (CPAF) type of contract where the contractor will be compensated for the costs of implementing the contract as well as an additional fee in the form of a reward. The rewards may be offered on the basis of performing the contract with efficiency or exceeding expectations.
The other major category of contracts is the time and material contracts. These are contacts that have agreed to specific rates of material costs and labor, which do not change for the entire duration or period of the agreement of the contract (F., V., & G., 2014, p. 1). As such, labor and materials are often billed as they are incurred. However, in some instances, the time and material contracts can incorporate adjustments such as annual escalation rates to keep in mind the increasing costs.
Based on the three major types of federal contracts described above, it is evident that both Dronnet and VectorCal qualify for fixed price contracts. This is because prior to receiving the contracts, the organizations often go through a detailed examination and analysis phase where their proposals are examined on the basis of the costs associated with the contract. Therefore, it is expected that the companies have done due diligence to determine the right prices for the contracts to avoid running into problems in the future. Also, the federal government has specified the value of the contract beforehand. Therefore, any company that is likely to exceed the value stated in the invitation to submit tenders will have to take care of its additional cost. It is also critical to take into consideration that government budgeting for such projects is fixed. Hence, the two organizations qualify for fixed price contracts from the government.
Direct and Indirect Costs the Companies Incurred
Direct costs can be described as those costs that can be traced accurately to a specified cost object. The cost object may be any project or product (Manuele, 2011, p. 1). In most cases, direct costs are considered to be variable costs. Examples of direct costs include costs of raw materials and labor. On the other hand, indirect costs are those that cannot be traced accurately to the cost object in question. The indirect costs can be further classified as either fixed on variable costs. Examples of indirect costs include administration fees, security costs, and personnel management.
Given the nature of the federal contract at hand, it is fundamental to consider the different costs that the two companies incurred in order to determine the most suitable organization to award the contract (Manuele, 2011). For example, in the case of Dronnet, there were several direct costs associated with its proposal. Among the four top direct costs the company incurred is labor, raw materials, equipment, and relevant software (Lancaster, 2014). On the other hand, Dronnet incurred other additional indirect costs related to the project. These include factors such as operational expenses related to the project, rental cost, Salaries and Remunerations, and electricity costs.
Conversely, VectorCal also incurred its set of direct and indirect costs that can be associated with its project proposal. The company’s direct costs include direct materials, labor, time, and equipment. On the other hand, the company’s indirect costs comprise of various factors including rent, electricity, compensation and salaries, and transportation.
There are some prominent similarities as well as some areas of notable differences in the two aspects of direct and indirect companies for the two companies. Nevertheless, it is crucial for one to analyze the components of each set of costs incurred by an organization in order to weigh up its management abilities, its strategic approach to cost management, and relating all these issues to the nature of the contract. Therefore, it is very crucial that the company awarded the deal is very efficient at managing its costs (Norfleet, 2007). This is a requirement for contracts of this nature because, as a fixed price contract, there will be no compensation for other additional costs incurred over and beyond the agreed upon contract price. Should the contract be inefficient, the cost is likely to escalate, making it difficult to see the contract as expected.
The Company that should be awarded the Contract
From the analysis of the information described in the previous sections about the two companies, the contract for drone navigation technologies should be awarded to Dronnet. The firs reason for granting the contract to Dronnet is the fact that it has a product that meets the requirements of the government in term of cost and efficiency (Myers & Ha, 2009). Dronnet has proven to be efficient in cost management, given that its cost effectiveness was one of the key issues which led to the company receiving its most recent government contract. In this case, analyzing the direct and indirect costs from the two companies based on the details provides, it is clear that Dronnet is more efficient at managing the direct costs associated with the project. As such, the risk of experiencing difficulties in running the project due to cost constraints is highly minimized. Dronnet has been able to present its project proposal in a manner that reflects the values such as transparency, accountability, and cost-effectiveness, hence the decision to award the company the contract for the project (Hastak & Mazis, 2014, p. 1).

Secondly, Dronnet is the most preferred company for this contract because of its investment in technology. Dronnet has invested considerably in this technology to help resolve current and emerging problems especially within the aspect of security management and general defense. Nonetheless, more significantly, Dronnet has been able to execute the previous government contract with efficiency, creating more jobs and contributing to enormous economic growth at various levels of the government (Kosmopoulou & Zhou, 2014, p. 1).
Thirdly, the company has been able to build a strong reputation in the industry as one of the most reliable companies. By examining the way in which the organization handled the first contract, it is clear that the organization has the capability of handling even bigger contracts.
Dronnet is classified as one of the leading startups that have seen immense growth. The government regulations stipulate that about 23% of government contracts be set aside for small and emerging businesses (Kosmopoulou & Zhou, 2014). The fact that Dronnet is only an emerging powerhouse in the industry is enough to win the company the contract.
Furthermore, through the company’s dealings with the government from the past contract, the organization was able to build strong ties and relationships with government officials. The company is in compliance with all the legal requirements related to this contract, hence the decision to award it for the contract from the department of defense.

References
F., S. K., V., K. M., & G., R. R. (2014). Federal Contracting for Minority Small Business Owners. Public Administration Quarterly.
Hastak, M., & Mazis, M. B. (2014). Three Decades of Marketing Academic Input at The Federal Trade Commission: Contributions to Research, Policy Marketing, and Litigation. Journal of Public Policy and Marketing.
Kosmopoulou, H., & Zhou, R. (2014). Price Adjustment Policies in Procurement Contracting: An analysis of Bidding Behavior. The Editorial Board of Industrial Economics.
Lancaster, L. (2014). changes in federal and state unemployment insurance legislation in 2013. Monthly labor review, 1-46.
Manuele, F. A. (2011). Accident cost Rethinking ratios of indirect to direct cost. Professional Safety.
West, W. G., & Lewis Jr, G. (2009). Contracting to Avoid Extra Liability. Business Lawyer.…...

Similar Documents

Premium Essay

Incentives in Contracting

...constraint)” (Federal Acquisition Regulation, 2012). If improvement in the contract delivery schedule is the Government’s focus, then it is appropriate to negotiate a delivery incentive contract. “Deliveries can be objectively measured by the delivery data and quantity delivered; as in other incentive structures, delivery incentives may also include positive and negative performance evaluations and a fee increase or reduction, using a fee adjustment formula” (Burleson & Wilson, 2007). Encouraging a performing contractor to comply with the contract requirements for complex acquisitions, also involve the type of contract the Government negotiates to fulfill its procurement objectives. Government contract types vary based on goods or service needed; degree of risk of contract performance; and the time and quantity of performance required by the contractor (O'Connor & Wangemann, 2009, p. 47). There are two broad categories of contracts, fixed –price and cost-reimbursement contracts. Between fixed-price and cost-reimbursement contracts are several types of incentive contracts. In the FAR subpart 16.4, “incentive contracts as described in this subpart are appropriate when a firm-fixed-price contract is not appropriate and the required supplies or services can be acquired at lower costs and, in certain instances, with improved delivery or technical performance, by relating the amount of profit or fee payable under the contract to the contractor’s performance” (Federal......

Words: 1533 - Pages: 7

Premium Essay

Federal

...objective of all federal, state, and local level is to have better infrastructure so that public health should be maintained and a healthy living is very important. To deal with diseases they should have enough money and prepare themselves for various emergencies. This will help the whole nation to become healthy. There are other factors which help in healthy life of public. These are better transportation, good communication, internet facility in remote areas etc. There are three main factors which contribute in public health through federal, state or local level. These are highly qualified employees which are efficient in their work and with good dedication so that more and more people can take advantage. Secondly proper information and data should be there so that urgent action can be taken for the betterment of the society. Thirdly many agencies should be given responsibility to find the needs for the public health. Accordingly action can be taken to deal with the needs. By continuous accessing the health status and solving them instantly is main objective of federal, state, and local level. If a disease is spread in an area according to that proper diagnosing and correct treatment should be done so that disease can be in control and should not be spread more. By education and by giving knowledge related to health problem can be provided to the people so that they can stay away from the diseases and remain healthy. These all responsibilities are of federal, state,......

Words: 594 - Pages: 3

Premium Essay

Federal Reserve

...What is the Federal Reserve? The Federal Reserve is the main bank of the United States government. The Federal Reserve is also the same bank that governs all other banking institutions in the United States. The Federal Reserve consists of 12 banking districts and is run by a Board of Governors. The Federal Reserve bank was created by the United States Congress in December of 1913. The Federal Reserve has some very important responsibilities which include adjusting monetary policy, price stabilization, monitoring and controlling inflation, and maintaining low interest rates to encourage economic growth. Aside from these very important responsibilities the Federal Reserve also acts as a financial institution for the United States government as well as central banks to foreign countries. The Federal Reserve is also responsible for ensuring adequate research is conducted on both the United States economy as well as the individual regions within the United States. They also take up the responsibility of educating people on what they do and how they do it through many different channels of media, such as: speeches, publications, web sites, and educational seminars. What are the factors that would influence the Federal Reserve in adjusting the discount rate? When it comes to the Federal Reserve adjusting the discount rate there are a few factors that play an influential role. The current state of the economy and the direction that the economy is moving are......

Words: 1814 - Pages: 8

Free Essay

Downey Contracting

...Downey Contracting, LLC Christie Anderson BUS/210 11-15-2012 After interviewing several businesses, the one that stuck out the most to me was Downey Contracting. The other two businesses that I interviewed could not even begin to tell me the answers to the questions that I was asking. When I asked the questions they looked dumb founded, I was astonished. I even ask the company I work for and my boss had no idea what I was talking about, it is really sad. People that own or have a business have no idea what is going on and what their structure is, all they could say is that they are there to make money. I do have to agree with them about making money, but they at least should have a structure that they follow. It actually just amazed me that none of them could answer my questions. Downey Contracting is a company that everyone should work for just because of their work ethic and how they treat their employees. The business structure that Downey Contracting uses is a simple business structure. Larry Downey one of the owners of Downey Contracting says, “the business structure we use is simple, we are here to bid jobs and make money.” When we hire people they are all treated as an equal in our company and we strive to make sure that everyone gets their part of the job done. No......

Words: 876 - Pages: 4

Free Essay

Federal Contracting

...Assignment 5: Federal Contracting Activities and Contract Types Angelina Brooks Professor: Larry Murphy Bus 315 December 15, 2013 My company’s mission is to offer stylish, great, affordable clothing to young men and women entering the world of business. I will offer customer’s a classy, stylish and a professional look for the business world. Clothes will be altered to fit customer’s shape and size in a variety of colors and options to solve fashion problems. My company’s vision is to help the younger generation realize that they can dress professional and still look good while in the business world. I will start out offering my product online and then eventually land a store within the mall where I can be exposed to different people of all ages, shapes and sizes. Starting out as a small business owner I will need as much support as I can to get started, which is my main reason for competing for a government contract. The government offers about 23% of their business to small business owners and as long as I can meet the government’s requirements at a fair and reasonable price, the government will limit competition to only small business owners as long as two or more small businesses are prepared to compete for contract which will provide a better business opportunity for my business. Also, having business with the government opens windows and doors for better opportunities. Government contracts save my company money, improve my performance and will promote my......

Words: 1362 - Pages: 6

Premium Essay

Contracting and Ethics

...give accurate information about discounts offered to commercial customers. Under federal rules, companies are required to disclose how much commercial customers pay to ensure that GSA can negotiate the lowest price for the government. This paper will provide an ethical analysis of the case, identify contributing factors, and recommend corrective actions for the issues addressed. The False Claims Act The False Claims Act is an important tool for U.S. taxpayers. It is used to recover monies stolen through fraud by government contractors. Under the False Claims Act, 31 U.S.C. §§ 3729-3733, those who knowingly submit, or cause another person to submit, false claims for payment of government funds are liable for three times the government’s damages plus civil penalties of $5,500 to $11,000 per false claim (TAF, 2011). The act imposes liability on any person who (1) submits a claim to the federal government that he or she knows is false, (2) knowingly submits a false record in order to obtain payment from the government, or (3) obtains money from the government to which he or she may not be entitled and then uses false statements in order to retain the money. In the case involving NetApp and GSA, NetApp had been hired to archive the government’s electronic records. The computer consulting company was offering steeper discounts to private clients than it was offering to taxpayers. Most federal contracts require vendors to tell the government when it is offering cheaper......

Words: 1530 - Pages: 7

Premium Essay

Federal Contracting

...begin with if used correctly they can propel a company in the limelight of attention to people of America as well as the government. The Buy American requirement is a regulation of the Federal Government with relationship to contracts which are subsidized by the federal government. These regulations apply to construction, maintenance, repair of public buildings, and products purchased by the federal government. All American products should be 100% manufactured here in the United States, mainly steel and iron used for such projects. As the leader in the industry of navigation and aerodynamics research and development for the Defense Department, Boeing Navigation Systems, Inc. uses this Act in products made or in production to honor our company, country, and for the families who work for us at Boeing Navigation Systems. RUNNING HEADER: BUY AMERICAN REQUIREMENTS 4 Buy American Requirements The Buy American Act of 1933 requires the federal government to buy American for example: made iron, steel and manufactured goods whenever possible. A product termed as American made under “Buy American” if at least 50 percent of its constituent parts and/or materials originated in the United States (unknown author, unknown year). The Buy American Act is applicable to all the United States Federal Government Agencies purchasing goods valued at more than a micro purchase threshold (unknown author, 2014). According to the act all goods used for public purpose should be produced......

Words: 3058 - Pages: 13

Premium Essay

Federal

...service sentences has been found to be good for the spirit (Maher & Dufour, 1987). Minor offenders also benefit from community service and mixed sentencing. Experiencing prison and receiving probation can take place throughout the week. In this case, intermediate sanction should be applied. Moreover, if he is allowed to be involved in community service programs, he will be able to remain in society with adequate supervision. This will help his rehabilitation in turn. Moreover, his memory of abuse may also get erased from his mind. The Probation Sentence In the criminal justice system probation is a particular type of sentence for criminal defendants. The judicial authority to order a sentence of probation is granted instatutes on the federal and state levels. Generally, probation allows a convicteddefendant to go free with a  suspended sentence for a specified duration during goodbehavior. Probationers are placed under  the supervision of a probation officer andmust fulfill certain conditions. If the probationer  violates a condition of probation, the coururt may place additional restrictions on the probationer or order the probationer toserve a term of imprisonment ( legal dictionary). Probation Department Within the probation department many alternatives can be offered. Community supervision is much more cost effective than a prison sentence or jail term both in monetary cost in non-monetary cost to the community. It allows for offenders to work and care......

Words: 661 - Pages: 3

Premium Essay

Project Contracting

...achieved for the low bid. In cases such as this, the client usually imposes incentive and penalty clauses in the contract for self-protection. Because of the risk factor, competitors must negotiate not only for the target cost figures but also for the type of contract involved since risk protection is the predominant influential factor. The size and experience of the client’s own staff, urgency of completion, availability of qualified contractors, and other factors must be carefully evaluated. The advantages and disadvantages of all basic contractual arrangements must be recognized to select the optimum arrangement for a particular project. Procurement can be defined as the acquisition of goods or services. Procurement (and contracting) is a process that involves two parties with different objectives who interact on a given market segment. Good procurement practices can increase corporate profitability by taking advantage of quantity discounts, minimizing cash flow problems, and seeking out quality suppliers. Because procurement contributes to profitability, procurement is often centralized, which results in standardized practices and lower paperwork costs. All procurement strategies are frameworks by which an organization attains its objectives. There are two basic procurement strategies: ● Corporate Procurement Strategy: The relationship of specific procurement actions to the corporate strategy. An example of this would be centralized procurement. ●......

Words: 448 - Pages: 2

Free Essay

Contracting Law

...Contracting and Payment Options Chontil Neville Procurement and Contract Law Professor Levasseur Introduction The government pays to its contractors when they submit invoices containing the prices of the supplies or the services rendered according to the contract’s terms. The invoices also contain any discounted or deducted amounts. The government is obligatory to pay upon deliveries unless they specify a due time to pay. For the purpose of selecting payments methods for the services and products purchased by the government agencies, FAR 32.113 should be referenced (Legal Information Institute, 1992). The purpose of this paper is to discuss the three payments options available to government and their advantages and disadvantages, three elements of the prompt Payment Act; next, it will discuss the key areas of cutting government costs, two revisions to TINA that will decrease the requirements for the government’s procurement of technical data and computer software. In the end, the paper will discuss the Buy American Act’s exceptions. Government Payment Options For purchasing the software for tax returns processing, contacting officers on behalf of Internal Revenue Service’s (IRS) can select various effective payment methods. Contracting officer uses the customary contract financing ref. 32.113 for review and uses it without getting the permission from top management. The Contracting officer can select three payment methods that are progress payment, performance-based...

Words: 2038 - Pages: 9

Premium Essay

Federal Government

...Hytema is a global aerospace, defense, and security corporation specializing in Department of Defense (DoD) systems that provide aeronautics, electronic systems, information systems and space systems solutions. We will provide a brief overview of the current state of the defense contracting sector and the cyber security threats and policies that govern it. We will also examine the classes of data that the defense contractor must protect and the potential cyber defense technologies that could be implemented in a prioritized strategy to secure that information. This briefing will also provide the priorities for legal and policy compliance amongst Defense contractors. Because Hytema is a Defense contractor the organization must work closely with the Federal Government causing them to adopt many of their policies and regulations. The most strategic and informative policy is the Federal Information Security Management Act (FISMA). All departments and agencies are required to coordinate and cooperate with the Department of Homeland Security as it carries out its cybersecurity responsibility actives as noted in the Office of Management Budget (OMB) (Dhs.gov, 2015) 2. Social Importance 2.1 Effects on society of the sector Defense contractors contribute to a very large part of what is deemed as societal importance in today’s society, however they are often overshadowed. Defense contractors that work for the Department of Defense within the cyber technology sector......

Words: 1094 - Pages: 5

Premium Essay

Selecting a Form of Contracting

...Selecting the form of Contracting Government Acquisition – BUS501 Date: 31 July 2011 An analysis of the difference between sealed bidding and negotiated contracting based on FAR standards and the needs and peculiarities of buying an IT system from an agency; it is believed that negotiated contracts are more appropriate. In fact, the landscape of acquiring government contracts has been moving towards the trend of negotiated contracts. It has actually become to norm for procurements, unless for certain occasions where sealed bidding is deem necessary. This case is not one of those occasions. Sealed bidding is only used when certain situations arise. For one, sealed bidding is only okay if the government has a lot of time. The process of soliciting bids, encouraging interested parties to pass their bids and evaluating the submitted bids could be very time consuming. An information technology system is often needed as soon as possible because this system would be used to streamline the operations and make the tasks of everyone in relation to the agency easier and more efficient. There is not a lot of time to ask for bids and evaluate each one being received. Although it would be nice to cut out on costs and sealed bidding offers this advantage, there are some ways to make sure one gets the best deals out of negotiated contracts as well. The time for sealed bidding often takes at least 30 days, wherein the solicitation of bids take place. More time would be......

Words: 1120 - Pages: 5

Free Essay

Contracting and Ethics

...Contracting and Ethics Author: Alfred Turner Professor: Michael Hanners Strayer University 20 January 2012 Abstract This paper will discuss the GAO analysis to determine whether Aetna Government Health Plans LLC (AGHP), should be excluded from the competitive bid based on alleged unfair competitive advantage stemming from AGHP’s hiring of former TMA (TRICARE Management Activity) employee. Health Net argues that the award to AGHP has been irreparably tainted do the fact that AGHP has hired one of Health Net top level with access to inside, non public source selection information and contract proprietary information. This paper will also go into details on some of the tactics to prevent this from happening if he or she knew about this contract. I will try to identify and legal and ethical issues related to the issue. While reading this Case and carefully and thinking this out after reading the FAR. If the employee that Aetna hired from TMA (TRICARE Management Activity. There is little to nothing that the FAR states that this contract shouldn’t be awarded to Aenta. There is nothing stating that the former TRICARE employee knew anything about this RFP, therefore by law you can not exclude AGHP from the competitive bid range. Actions for TMA to take Why there appears to be little TMA can do. TMA may want to do an investigation and start by going to their former employee contract history to see was a pattern started with him and AGHP. Was he ever on the......

Words: 627 - Pages: 3

Free Essay

Contracting Methods

...Sealed Contracting The method of obtaining government contracts has changed considerably. Sealed bidding is less frequently used now than in the past. However, there are certain situations when sealed bidding is mandatory. According to the Federal Acquisition Regulation when preparing sealed bidding invitations must describe the requirements of the Government clearly, accurately, and completely. Unnecessarily restrictive specifications or requirements that might unduly limit the number of bidders are prohibited. The invitation includes all documents (whether attached or incorporated by reference) furnished prospective bidders for the purpose of bidding. As a result government contract practitioners still must familiarize themselves with processes that call for sealed bidding. In the mid-1990s, Congress made several changes to statutes related to processing acquisition of government contracts. Before these congressional amendments sealed bidding was the standard. In most cases sealed bidding is the preferred method for construction , so if the Seahawk helicopters and Cobra aircrafts are being purchased for that type of business it would be a better option. Negotiated Contracting These amendments gave federal contracting officers more opportunities to award contracts through the newer process competitive negotiation. The process begins when the CO issues a Request for Proposals. The RFP must, include the agency’s need, the terms and conditions of the contract and any......

Words: 1042 - Pages: 5

Premium Essay

Socioeconomics of Government Contracting

...Socioeconomics of Government Contracting Joseph Casanova Professor Lateefah Muhammad LEG 440- Procurement and Contract Law July 25, 2012 Introduction Highly publicized incidents such as the federal government purchasing at $500 hammer or $2,500 toilet seat continue to capture headlines as examples of a federal procurement process gone awry, but these notorious examples have become few and far between in recent years, due in large part to significant reforms such as the Federal Acquisition Streamlining Act of 1994 that minimized some of these problems. Despite these substantive reforms, the federal government continues to receive criticisms concerning the manner in which it administers the procurement process. In order to gain new insights in this area, this paper provides a review of the relevant literature to describe the legal and administrative framework and socio-economic considerations of the federal procurement process. A summary of the research and important findings are presented in the conclusion. Review and Discussion Legal Framework At present, federal procurement contracts are governed by a number of statutory and regulatory requirements, including the Federal Acquisition Regulation (FAR) (Nou, 2009). The FAR sets forth detailed procedures concerning virtually all aspects of the federal procurement process including notice and competition as well as awards and contract management (Nou, 2009). In addition, the Competition in Contracting Act......

Words: 1445 - Pages: 6

Rot Farbe Streifen Stil Casual Schuhe Männer Schuhe Mode Licht Zapatos Hombre Chaussure Homme Turnschuhe Casual Männer Schuhe Size39-44 | Aquarius | Lire la suite...