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Federal Contract There Are Two Basic Methods Essay

Federal Contract There are two basic methods for providing goods and services to the federal government. One is through existing and required sources of supply where the other is an open market acquisition using simplified acquisition techniques or formal contracting methods (14 FAH-2 H-200 Acquisition Basics, 2011). The simplified acquisition method falls into the threshold of $3,000 to $150,000 category and is done with procedures such as, imprest fund, purchase card, purchase orders, or blanket-purchase agreements. They follow the procedural guidelines of the Federal Acquisition Regulation Part 13 (FAR13).

When a contract, like $500,000, exceeds the threshold, the sealed bidding or negotiation methods must be used. The Sealed Bidding Process (IFB) is characterized by competitive bids that are sealed by the respective vendors, only opened by government officials in a public ceremony, and awarded to the lowest-price acceptable bidder. Sealed bids are considered when time permits the solicitation, submission and evaluation is appropriate, awards can made on the basis of price and other related...

The sealed bidding process prohibits discussions after the bid opening ceremony.
The Negotiation Procurement Process (RFP) refers to any acquisition that is not sealed and does not meet the prerequisites of the Sealed Bidding Process. Negotiation requires the technical proposals and the price proposals to be packaged separately. The contracting officer may hold negotiations to discuss any deficiencies in the proposals and request revisions. The award is offered to the bid that gives the government the highest advantage or value. The major feature of negotiation is on technical aspects, not just the price. The negotiation method has the advantage of being able to discuss any deficiencies and answer questions that arise from bids not being very clear as to what they are really wanting in the process.

The Uniform Contract Format comes in four parts (Subpart 15.2-Solicitation and Receipt of Porposals and Information). Part I, the Standard Form (SF) 33 states the detailed information of the bid. Part II is the contract…

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Bibliography

14 FAH-2 H-200 Acquisition Basics. (2011, June 06). Retrieved from U.S. Department of State Foreign Affairs: http://www.state.gov/documents/organizations/89066.pdf

Contract Administration Issues. (2011, May 16). Retrieved from Victorian Government Health Information: http://www.capital.dhs.vic.gov.au/capdev/ProjectDelivery/Construction/ContractAdministration/ContractAdministrationIssues/

Subpart 15.2-Solicitation and Receipt of Porposals and Information. (n.d.). Retrieved from U.S. Government: http://www.acquisition.gov/for/current/html/Subpart%2015_2.html
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