Win the Contract for a small business (Small remote control aircraft capable of long sustained flights) - Essay Example

The organization is trying to expand their business operations by competing for Department of Defense contracts. The organization is trying to bid on a contract which is worth of more than 600,000 US dollar. Simplified acquisition method will be appropriate in this case based on the business scenario as simplified acquisition provides effective and easiest pathway to several federal contracts for small businesses. The procurement process is quite narrow and various federal contracts are kept exclusively for smaller business units.

The business will consider smaller dollar buys. Simplified acquisitions are generally reserved for smaller dollar buys. Moreover, they can be utilized for the purchase of various commercial goods priced as 5 million US dollar. The small business organization can reserve the services and supplies between 2500 US dollar and 100,000 US dollar through this simplified acquisition method. This simplified acquisition method will help the small organization to reserve the services and supplies as long as the officer of federal contract can attain several competitive offers from more than one small organization.

Simplified acquisition method does not stick to a specific set of buying process (Rumbaugh, 2010). Major advantage of this method is that government officials can develop and pay blanket purchase agreements, purchase cards, purchase orders and cash for simplified acquisition methods. The small business organization can present contracting officials along with a quotation in order to win the contract through simplified acquisition method. Question 2: Analyze all parts and sections of the uniform contract format that could present a problem in this scenario.

Suggest how you will adjust your approach to turn the problems you have identified into strengths for your small company. There are four parts of Uniform Contact Format such as The Schedule, Contract Clauses, List of exhibits, documents and other attachments, and representations and instruction. The small business can face several problems associated with contract clauses. Several break free clauses can create payment and cost recovery issues. In lump-sum payment issues the contractors can be engaged by the hirer based on \several exclusive aspects.

If the hirer decides that the services of contractors are not necessary for a long-term, they can terminate the contractors. In this case, the contractor needs to be compensated by the hirer with a lump-sum compensation amount. This compensation amount can cross the limit of 1000 US dollar against the termination (Clifford & Warner, 2008). This termination can result in huge operating cost that can affect the business performance of the small organization. On the other hand, cost recovery issue can be a serious problem that can affect the business performance of the small business organization.

In cost recovery process, contractor can be engaged by the hirers within the organization. In this case, if the hirer decides that the long-term contract with the contractor is not necessary for future and terminates the contractor before the contract period then the hirers need to compensate the contractors for each and every reasonable cost. However, in both these cases, the organization has to face huge loss that can affect the performance of organization. Moreover, it can reduce the business output.

It is clear from above discussion that several contract clauses issues can limit the business output of the organization. The organization needs to build trust among every shareholder to overcome the issues. Breach of contract can create several legal challenges. The organization