Federal
Acquisition Regulation
Enlargement of commercial enterprise to achieve the level of the federal
marketplace is indeed profitable as well as offers several networking alongside
growth chances. However, triumphing in federal contracts additionally implies
observing the legislations, as well as rules peculiar to business people’s
activities with the state. A number of upcoming contractors and particularly
small commercial enterprises fail to comply with the rules as well as the
regulations they ought to adhere to (Moszoro, & Spiller, 2012, p. 112). Federal Acquisition Regulation mutually benefits both small businesses
and the defence department such as the Navy in several ways.
Small business enterprises and Navy benefit especially in the
contracting scenario, FAR proposes negotiation as well as the practice of
conscious judgment especially when choosing the type of the contract. It
further asserts that the agreement that propagates the optimal use of the
fundamental profit motive of commercial organizations a high fixed price
contract- suits utilization in scenarios where the uncertainty in question is
insignificant. In addition, they benefit by directing contracting officers to reflect
on the kind, as well as the intricacy of the requisites during choosing of the
form of agreement. Thirdly, they benefit through stressing of FAR on the
appropriateness of constant price contract stays confined to the acquisition of
supplies in conditions of firm design focused on approved specifications.
Furthermore, there are many methods used for the soliciting bids. The
process seems specified by the law (Moszoro, & Spiller, 2012, p. 112). The law demands that all stakeholders to acquire competitive bids
prior to the assignment of different categories of contracts. Competitive
bidding process fulfils the purpose of curbing collusion as well as bias in the
assignment of contracts as well as to promote good pricing with the aim of protecting
the public funds from misuse and this constitutes the rationale for the Navy to
a choose a particular company in a sealed bidding process. The legislation does
not often demand the assignment of contracts to the least bidder. It is evident
that bidding requisites portray the aspect of requiring wise venture of public
funds (Snider & Rendon 2012, p. 67). This implies that the standard, as
well as the worth, can be as vital as the first price in assessing products as
well as contractors in strict bid contracts. There are two forms of competitive
bidding. These include formal bidding as well as informal bidding. This is
applicable to two classifications of contracts (Snider & Rendon 2012, p.
53).
Notably, the contract which involves the purchase or lease buying of
apparatus alongside supplies and materials. Secondly, it is the contracts,
which include edifice activities. The contracts that do not feature in these
classifications do not fall under the docket of the competitive bidding process
(Snider & Rendon 2012, p. 57). The competitive bidding requisites are
applicable to counties besides cities, schools as well as other state
departments, which encompass the Navy. It also applies to private organizations
such as commercial enterprises. Competitive bidding requisites appear
stimulated when the use of public finances for the two particular categories of
agreements take place at the dollar limits as stated in the law (Snider &
Rendon 2012, p. 67).
There are other approaches that includes negotiation as well as
alternative contracting techniques such as approaches covering the contract of
service (Cox, & Moore, 2013, p. 54). The negotiation process involves a relatively a more intricate
procedure for the organizations intending to transact with states (Cox, & Moore, 2013, p. 56). For instance, when the worth of a state contract goes past $100,000 as
well as when it needs an extreme technical commodity, the state may give a
response for proposal (RFP). In that particular RFP, the state will specify a
product it desires then solicits for proposals from potential contractors based
on their terms of the contract and then negotiation takes the course. Finally,
alternative contracting methods involves consolidated purchasing programs, and
this is applicable when the government attains economies of scale through bulk
buying of distinct products (Cox & Moore, 2013, p. 58).
References
Cox, A. G., & Moore, N. Y. (2013). Improving
Federal and Department of Defense Use of Service-Disabled Veteran-Owned Small
Businesses. Rand National Defense Research Inst Santa Monica CA,
USA.
Moszoro, M. W., & Spiller, P. T. (2012). Third-party
opportunism and the nature of public contracts (No. w18636). National
Bureau of Economic Research, Cambridge, USA.
Snider, K. F., & Rendon, R. G. (2012). Public Procurement: Public Administration and Public Service Perspectives. Journal of Public Affairs Education, 327-348,National Association of Schools of Public Affairs and Administration (NASPAA);Naval, USA.
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