Compare and Contrast Federal Procurement System before and after 1994 - Article Example

Swarna Word count 1095 ID 5448 Order # 144527 8th December 2006. Compare and contrast federal procurement system before and after 1994 Federal procurement system is a mechanism in United States of America in which the federal government involves in high range of procurement for the interest of the general public. It generally takes higher time even 1-3 months for completing the procurement. It also onvolves huge paper work and administrative formalities. It has undergone several modifications since its inception just like any other procurement policy. However Federal acquisition streamlining act implemented in 1994 made considerable changes to this system and hence it would be logical to compare the federal procurement system before and after 1994. In 1994, American Congress passed the Federal Acquisition Streamlining Act, and it was signed into law. (Federal Acquisition Streamlining Act, 1994). The main objective of FASA was to revise and streamline the acquisition laws of the Federal government in order to reduce paperwork burdens and facilitate the acquisition of commercial products. It also aims to simplify procedures for small purchases, clarify protest procedures, eliminate unnecessary statutory impediments to efficient and expeditious acquisition, achieve uniformity in the acquisition practices of federal agencies, and increase the efficiency and effectiveness of the laws governing the manner in which the government obtains goods and services 1. Clearly, it was intended to simplify and streamline certain aspects of government acquisition. The main difference between pre 1994 and post 1994 procurement systems is that the administrative costs and processing costs were higher in federal system before 1994. Similarly the burden on vendors also got reduced tremendously resulting in lesser cost of government 1 : S. REP. No. 103-258, at 15 (1994), reprinted in 1994 U.S.C.C.A.N. 2561, 2576. purchases in federal procurement system after 1994. Dilulio et al. (1993) stressesd the importance of enhancing the efficiency in procurement system of government by reducing the burden on vendors. The federal procurement policy has reduced the unnecessary regulated complex provisions after 1994 which has increased the efficiency of the system. The reforms of multiple-award task and delivery order contracts were found in federal procurement system after 1994 which was not the case before 1994. It resulted in simple form of procurement compared to pre 1994 system. Post 1994 system is more straightforward, and highly efficient compared to that of pre 1994 system. The multiple task order contracts was preferred in federal procurement system after 1994 where as single task order contracts were major contracts in federal procurement system before 1994. There were several changes in the area of task and delivery order contracts in federal procurement policy after 1994 due to implementation of FASA. The agencies were given more freedom and broader discretion (sections 1004 and 1054) in establishing procedures for the evaluation and award of individual task orders under multiple award contracts after 1994. The same ystem was very rigid in giving discretion to the given agencies before 1994. the decision making was facilitated at lower or base level in federal procurement policy after 1994. It was also noticed that specific time frames or other procedural requirements for the issuance of task orders was common in federal procurement system before 1994 which was almost removed after 1994. The final objective behind this motive lies in providing equal opportunity to maximum contractors while awarding of each task order. In addition, there was a hinderance before 1994 in the form of CICA (Competition In Contracting Act) for all the contractors which was also relaxed in federal procurement system after 1994. Moreover, the post 1994 procurement system gives preference to different factors such as past performance, quality of deliverables, cost control, as well as price or cost while deciding the contractors. This resulted in provision of higher discretion for contractors in federal procurement system in post 1994 scenario compared to pre 1994 scenario. Higher incentives were created for encouraging the concept of multiple award in federal procurement system in 1994. The federal procurement policy lacked innovativeness in contracting before 1994. Similarly it was dominated by beurocratic complex procedures leading to poor efficiency. However, the efficiency of procurement system witnessed a sudden growth due to introduction of innovative contracting and removal of beurocratic hurdles after 1994. The federal procurement policy was dominated by rigid rules in beginning (before 1994) which were replaced by guiding principles after 1994. imilarly, the task order and delivery order contracts were broadly defined by the FASA act in 1994 which were reflected by very narrow meaning before 1994. It explains the necessity of stating the period of the contract, the maximum quantity or dollar value of the services or property to be procured under the contract, and a reasonable description of the general scope, nature, complexity, and purposes of the services or property to be procured under the contract. In earlier system (before 1994) the government used to engage in the normal notice requirements applicable to contract solicitations before awarding an order under a task or delivery order contract. This has been modofied through FASA in 1994 making the procurement sytem more simple. Another important improvement made by the FASA in 1994 is the replacement of normal procurement competition requirements by ‘fair opportunity’ requirement 2. This made the provision of fair opportunity for all multiple award task and delivery order contractors for all orders in excess of $2,500 except in cases of orders with unusual urgency. The FASA also made mandatory on part of every executive agency that awards multiple task or delivery order contracts to appoint a task and delivery order ombudsman. The ombudsman is responsible for reviewing contractor complaints and ensuring that all contractors are afforded a fair opportunity to be considered for all task and delivery orders. Hence federal procurement system has increased the chances of fairness and equal opportunity after 1994 which was completely neglected before 1994. The Administrator of OFPP (Office of Federal Procurement Policy) has been given responsibility of maintaining the standard provisions of FASA and hence ensured more transparency in federal procurement system after 1994. 2 : 41 U.S.C. [section] 253j(b) (2005). Over all, the federal procurement system has increased its efficiency significantly in terms of guiding principles, lesser beurocratic hurdles, innovative contracting, cost reduction, povision of equal opportunity and transparency with the introduction of FASA in 1994. Bibliography : DiIulio, John J., Jr., Gerald Garvey, and Donald J. Kettl, Improving Government Performance: An Owners Manual (Washington, D.C.: Brookings Institution, July 1993), p. 24. Federal Acquisition Streamlining Act of 1994, Pub. L. No. 103-355, 108 Stat. 3243 (codified in scattered sections of 10 U.S.C. and 41 U.S.C.). Read More