Process of Government Bids - Research Proposal Example

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. Requirements for being considered for contracts According to U.S. SBA (n.d.), in order to bid for a contract a business has to be registered with the government as a vendor. The business then becomes part of a database of businesses that are eligible to bid for contracts. 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 contract. This is seen by many as a complicated process since it makes references to a number of documents which the prospective contractor may not be privy to and is normally a turnoff for many. Onvia (n.d.) also states that the nature of RFPs makes them very complicated and therefore makes winning government contracts very time consuming. In fact Onvia (n.d) indicates that companies that bid on government contracts often pursue them in an inefficient and costly manner. This they said can be avoided by taking a targeted approach which considers knowledge and understanding of: the agency to which the contract relates; and the competition. A well planned strategy is also very important. Elements of a proposal According to Bid Contract (2011), the elements of a proposal include the following: An executive summary which informs the evaluators why your firm should be awarded the contract; An explanation of how your firm intends to carry out the requested contract for goods or services; Correctly completed and signed documents. Errors should be avoided as this could lead to rejection of the firm’s proposal. The Curriculum Vitae (CV) of key personnel of the firm including their qualifications and responsibilities. This also includes similar information on sub-contractors that are named by the firm. The sequencing of the major topics in the proposal should correspond to that laid out in the RFP; Prepare charts and graphs to support proposal where necessary and ensure that they are relevant to the proposed project; Provide a safety plan where the contract involves the use of machinery, chemicals or any equipment that it is conceived my cause to employees or visitors to the site of the contract activities such as construction. Bid Contracts (2011) further points out that quality assurance is a very critical and highly significant aspect of doing business with the government. It is therefore of extreme importance that a firm provides evidence that products and services will meet the required standards of quality that the federal agency expects. The firm should therefore have a Quality Assurance (QA) program in place which the agency can assess in order to evaluate the product. This may involve records of tests, inspections that are relevant in making a determination on quality. Factors used to Evaluate Bidders Government agencies use a number of factors to determine their choice of successful bidders. Bid Contracts (2011) the factors that are used to evaluate prospective suppliers include: The size of the firm; The previous experience of the firm in providing these services generally and in particular to government agencies; The financial standing of the firm; The capabilities of it key personnel and supporting staff to provide the specific service; The firm’s record with regard to labor relations; The capacity of the work and binding; the service record of the firm; The facilities that the firm has in relation to that required to perform the contract efficiently and effectively; The professional credentials of key personnel and reference checks. How to Win Contracts According to Onvia (), in order to win contracts they are required to have knowledge and information on the agency, the competition and be able to develop a strategy that will enable them to win the contract. The Federal Acquisition Regulations (FAR) is the primary regulation that is used by all Federal Executive agencies to guide them in their quest to obtain supplies and services with the funds that have been appropriated for their use. For construction contracts Part 36 of FAR is expected to be adhered to. Bids A pre-solicitation notice was issued on April 8, 2011 and since then three amendments have been done. The last of the three was done at 11:11 am May 23, 2011 (today). A copy of the notice can be found in the Appendix which gives additional requirements regarding registration. Our company is required to apply for a DUNS number from Dun & Bradstreet before we attempt to register in the central contractor registration system. Proposal Y--Site Prep Patient Lifts - MC CLC Solicitation Number: VA25911RP0187 Agency: Department of Veterans Affairs Office: VA Rocky Mountain Consolidated Contracting Center Location: Department of Veterans Affairs Contract Value: $100,000 - $250,000 Bidder: XYZ Corp Duns #: Executive Summary Our Company XYZ Corp is operated by an experienced and qualified Service Disabled Veteran. The business has been in this business for the part 12 years. We have completed a number construction contracts for private and publicly listed companies. This is our first attempt to win a government contract. XYZ believe we have the personnel in place to get the job done within the time frame and in an efficient and effective manner. This is the first time that XYZ is applying for a government contract. However, some of our key personnel have been engaged on government contracts before. The company is capable of providing all equipment, materials and labor necessary to perform the contract at Miles City, Montana Community Based Outpatient Clinic (CBOC). Our Business XYZ Corp is a medium sized construction company with commercial business in excess of $40 million. We have worked on a number of contracts both as contractors and as sub-contractors. Our head office is located in New York City and we have an office in Miles City; MT .where we have been operating for approximately one (1) year. XYZ Corp has received a number of awards in the State of New York and in New Jersey. XYZ is financially stable and will be able to carry out the contract without any expression of financial distress. Key Personnel We have in a team electrical engineers who have years of experience working on both government and other private contracts. Our project manager Don Phelps will be responsible for this project has always been on time on all his projects. He has an enviable track record in managing projects and ensuring that deadlines are met. The Curriculum Vitae detailing qualifications and experience of all our key personnel are attached. Our team includes electricians, sheet metal workers, carpenter, plumber, ceiling installer and other laborers. These team members are hard working and have received commendations on all their projects. We have attached a list of some major projects for your reference. Labor relations XYZ has a solid reputation as it relates to labor relations and health and safety on the job. We have a safety policy that all staff members are required and have agreed to follow and so far our record is almost unblemished, with just one regrettable incident. Quality Assurance XYZ Corp has quality assurance procedures in place to ensure our work is carried out to the required standards. We are a green company and we ensure that the materials used in our projects are of the required standard and that quality control inspectors carry out their required role at every stage of our contracts. These inspections are recorded and are available for perusal. Conclusion XYZ has filled out the required documents online in the sequence laid out in your RFP and we expect to visit the site regularly for amendments. References Bid Contract. (2011). How to Bid and Win Government Contracts. Retrieved online from: http://www.bidcontract.com/government_contracts_bids/Government_contracting_101.aspx. Last accessed 23rd May 2011 Federal Business Opportunities (n.d). Y-Site Prep Patient Lifts-MC-CLC. Retrieved online from: https://www.fbo.gov/index?s=opportunity&mode=list&pageID=2. Last accessed 23rd May 2011 General Services Administration, Department Of Defense, National Aeronautics and Space Administration (2005) Federal Acquisition Regulation. Retrieved online from: https://www.acquisition.gov/far/. Last accessed 23rd May 2011 Onvia. (n.d.). The Research You Need to Win Government Bids. Retrieved online from: http://www.onvia.com/b2g-resources/article/the-research-you-need-to-win-government-bids. Last accessed 20th May 2011 U.S. Small Business Administration (n.d.). Contracting Opportunities. Retrieved online from: http://www.sba.gov/category/navigation-structure/contracting/contracting-opportunities. Last accessed 20th May 2011 Appendix Y--Site Prep Patient Lifts - MC CLC Solicitation Number: VA25911RP0187 Agency: Department of Veterans Affairs Office: VA Rocky Mountain Consolidated Contracting Center Location: Department of Veterans Affairs Synopsis: Added: Apr 08, 2011 2:46 pm THIS IS A PRE-SOLICITATION NOTICE. Request for Proposal VA-259-11-RP-0187. The VA Montana Healthcare System (MHCS) Medical Center, Fort Harrison, Montana is soliciting bids from experienced and qualified Service Disabled Veteran Owned Small Business Concerns (SDVOSB) capable of providing all equipment, materials and labor necessary to perform work at the Miles City, Montana Community Based Outpatient Clinic (CBOC), project number 436-11-SLP-101, SITE PREP-PATIENT LIFTS-MILES CITY. Project scope includes the installation of structural supports on roof joists; ceiling removal, light fixture removal and piping/ductwork relocations. Trades expected are; electrician, sheet metal worker, carpenter, plumber, ceiling installer, laborer. The estimated construction range is between $100,000 and $250,000. In accordance with P.L. 109-461, this acquisition is restricted (set-aside) to Small Businesses Owned and Controlled by Service Disabled Veterans. NAICS Code 236220, Commercial and Institutional Building Contractor, is applicable to this acquisition with a Business Size Standard of $33.5 million. Solicitation documents will be available electronically on or about May 2, 2011 at the FedBizOpps website at https://www.fbo.gov. NO HARD COPIES OF THIS SOLICITATION WILL BE ISSUED. Site visits will be by schedule only. Contact Rob Dunn, project engineer at (406) 447-7380 to schedule a site visit. Prospective offerors are encouraged to familiarize themselves with the project, project site and conditions which may affect your proposal. Upon review of the solicitation documents, prospective offerors are encouraged to provide questions and comments, in writing to the Contracting Officer. Solicitation number VA-259-11-RP-0187 has been assigned and shall be referenced on all correspondence regarding this announcement and solicitation. Interested firms are reminded that in accordance with FAR Part 4.11, prospective contractors are required to have an active registration in the Central Contractor Registration (CCR) and FAR Part 4.12, prospective contractors must complete electronic on line annual representations and certifications (ORCA) databases prior to award of a contract. Both can be accessed at the Business Partner Network (BPN) website at http://www.bpn.gov/. All SDVOSB concerns submitting a bid must be registered in the VetBiz Information pages located at http://www.vip.vetbiz.gov/. Offerors must be VetBiz CVE Verified to be eligible for award. The Contracting Officer for this acquisition is Mr. Terry Hannigan. Mr. Hannigan can be contacted via email at terance.hannigan@va.gov. Contracting Office Address: Department of Veterans Affairs;Rocky Mountain Network;VISN 19 Contracting;4100 E. Mississippi Avenue, Suite 900;Glendale CO 80246 Place of Performance: Miles City VA CBOC;210 S. Winchester;Miles City, MT 59301 US Point of Contact(s): VISN 19 Rocky Mountain Acquisition Center 4100 E. Mississippi Ave., Ste 900 Glendale, CO 80246 Note The above information was obtained from the website of Federal Business opportunities. additional details relating to the contract and as well as to contact the contract office can be done through the website. Read More