Name: Course: Instructor: Date: The Process of Government Bids Introduction This paper looks at the process of government bidding and how to ensure that a firm has a good chance in being awarded a contract. It considers a construction contract in the Veteran Affairs Department and prepares a proposal that may be used along with other information required for submission of a bid for the contract…
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Bid Contract (2011) indicates that the U.S. Government is the largest company in the world with some $1 billion in new opportunities that private businesses can bid on each day. According to Bid Contract (2011), approximately 11 million contracts are signed by the federal government each year. However, despite this fact less than five (5) per cent of US businesses provide contractual services and products to U.S. Government via one of its federal agencies. Bid Contract (2011) further states that approximately 95% of these contracts are awarded to small and medium sized businesses. These contracts include: janitorial services, food services, technological systems such as complex space flight systems development. A small business set aside program is also in place to ensure that small businesses awarded a fair proportion of these contracts. Therefore certain government purchases are reserved for small businesses. This relates specifically to contracts with values between $25,000 and $100,000 which are reserved for either small, small disadvantaged, women-owned, and small veteran owned businesses. How the government buys According to Bid Contract (2011), there are two methods that the government uses to purchase products and services that it requires to carry on the business of managing the nation. They are sealed bidding and negotiation. The sealed bidding process involves an Invitation for Bid (IFB) by the agency that needs to procure services or goods. A contract is usually awarded to the lowest price bidder following the receipt and evaluation of these bids. The contracting officer determines this bidder to be both responsive and responsible. The negotiation process involves the issuing of a Request for Proposals (RFPs) or a Request for Quotations (RFQs) and involves the negotiation of all elements in the proposal. The best proposal in terms of both technical content and price is usually awarded the contract. Types of goods and services normally purchased by government A wide range of goods or services are normally required by government. They include architectural; cleaning and custodial; construction and remodeling; construction and building materials; consulting services; environment and conservation; recycling, waste water, sewage treatment; air purification, tanks, excavation, demolition, salvage; financial and accounting; retirement plan, investment; food services; garden and landscaping; HR services; computer hardware; computer software; insurance; machine shop and fabrication; mailing; marketing and communication; medical and laboratory; personal care, rehabilitation, psychotherapy, drug counseling, medical facilities, ambulance, burial, cremation; office supplies; other supplies; other products; other services; printing and reproduction; Research into energy, healthcare, science and technology; security and safety; facility rental and management; telecommunication; translation and transcription; transporting and warehousing; and weapons and ammunitions. It therefore means that contracts are regularly offered for these services. The Bidding Process In order to bid for a contract with any federal agency a prospect has to tender a proposal. However, Onvia (n.d.) states that some contractors are normally frustrated by the Request for Proposal (RFP). However, this is the only way that a prospective contractor can bid on a US government
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