Contracting with the Federal Government - Term Paper Example

Contracting by Simplified Acquisition Procedures, FAR 13 This rule involves the government purchase of tools that are less than the value of $150,000. The government purchase of this equipment is considered micro purchases. The involved procedures do not require competitive bids or quotes and the involved agencies can buy through credit cards or the Government Purchase Card. In addition, it is not necessary to involve the procurement officer. However, most of the government purchases are in this category since most of the products purchased do not involve a lot of money.

An example is the government purchase of office equipment such as chairs, tables, and computers. This category comprises of more than 70 per cent of all government purchase dealings. According to government statistics, this category involved a total sum of $19 billion dollars. The increase in government transaction in this category is because the Federal Acquisition Streamlining Act made several amendments to the act thus eliminating limitations on government purchases under $150,000. This means that agencies can be allowed to use abridged processes for soliciting and assessing bids worth up to $150,000.

However, it is mandatory for the government agencies to publicize all deliberate procurements over $25,000 according to Federal Business Opportunities or on the government website, which enlists all the available procurement opportunities. One main advantage of this easy purchase processes is that they require fewer governmental details, less endorsement levels, and fewer documentation. However, these procedures require all the government procurements above $3,000, but under $150,000, to be kept back for small companies.

in addition, the small businesses has to apply for the purchases except if the assigned agent cannot get proposals from two or more minor businesses who are competitive on price, quality and distribution (Government Contracting 101; Worthington & Goldsman, 1998). Contracting by Negotiation, FAR 15 This government rule requires that the government agencies to use negotiation as a contracting method. In order to do this, the federal agencies have to issue a request for proposal (RFP) or Request for Information (RFI) or Invitation for Bid (IFB).

 Unlike the previous rule, this rule allows for, communications, Clarifications, and discussions in the selection procedure and the government might permit for last proposal amendments. In order for a company to be selected, some factors such as best value and trade-off processes are evaluated. This occurs depending with the interest of the government to contemplate issues other than the lowermost price or utmost technical rating, or the lowermost price that is technically appropriate source for selection, where the solicitation highlights the marginally suitable standards and the selection is founded on a price assessment amongst all suitable bids.

 This rule applies mostly to contracts above $150,000, and extremely technical products and services are being pursued (Worthington & Goldsman, 1998). Contracting by Sealed Bidding, FAR 14 The Contracting by Sealed Bidding as described by the rule consist of making and advertising an invitation for bids (IFB). It also involves receiving the proposals, opening them openly, assessing them without negotiations with the bidders, and giving the agreement to the accountable and responsive bidder founded on price and