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1.6 Contracting Methods

1.6 Contracting Methods. Don Shannon. Sealed Bidding. Discussed in FAR Part 14 Solicitation is an “Invitation for Bid” (IFB) IFB is publicly advertized either on FedBizOps or other method Public Bulletin Board etc. Sealed bids commonly used for fixed price contracts awarded for

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1.6 Contracting Methods

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  1. 1.6 Contracting Methods Don Shannon

  2. Sealed Bidding • Discussed in FAR Part 14 • Solicitation is an “Invitation for Bid” (IFB) • IFB is publicly advertized either on FedBizOps or other method • Public Bulletin Board etc. • Sealed bids commonly used for fixed price contracts awarded for • Construction • Purchase of commercial goods • Public Bid Opening • Award is almost always made without discussion (not to be confused with clarification) • Winner is low bidder

  3. Two-Sep Sealed Bid • Step 1 is solicitation for technical proposals • Proposals are solicited using a “Request for Technical Proposal” (RFTP) • Proposals are evaluated to determine technical merit and to refine the specifications. • Selectees are considered in the “competitive zone” • Step 2 is a Sealed Bid based on the approved technical proposal(s) • Participation limited to those who previously submitted an acceptable proposal • Normal sealed bid procedures then used to select low bid.

  4. Negotiation • FAR Part 15 • Used for both competitive and non-competitive proposals • Negotiations conducted through “discussions” • Includes all contracts not awarded by sealed bidding regardless of whether negotiations actually took place. • Soliciting document is a Request for Proposal (RFP) or Request for Technical Proposal if a Two-Step process is to be used.

  5. Simplified Acquisitions • Relaxed rules for the purchase of commodities • Usually low dollar value (150k) • Less paperwork .. more like a purchase order • Often bought with Government credit card

  6. Federal Supply Schedule • Example is GSA purchasing schedules • Allow the pre-negotiation of terms and conditions (ordering agreement) • Orders are placed against these agreements for purchase • Primary means is eBuy via GSA Advantage • Credit card use is possible • Used extensively for commercial products and some Scientific and Engineering serrvices

  7. Auctions • Sales may be accomplished by “forward” auction such as ebay where high bidder wins the item. • Purchases may be made among multiple sellers based on low price. • Electronic Commerce is key component • Typically accomplished using simplified acquisition procedures.

  8. Solicitation Devices • Request for Proposal (RFP) – Seller is asked to submit a proposal typically for a negotiated procurement. • Multi-part document with cost and technical content • May be limited to a specific page length • Request for Quote (RFQ) • Seller submits a document consisting of product information and cost. • Documents submitted are NOT an offer but may be acted upon without further discussion or negotiation • Often used with GSA or Delivery Order contracts • Government may issue an order based on the quote which must be accepted by the seller to form a binding contract

  9. Solicitation Devices • Request for Information (RFI) • Sometimes used as part of Market Research to determine capabilities • Often times lead to submittal of Statement of Capabilities as a response • Unsolicited Proposal • Submitted by offeror without a solicitation (Cold-Call selling) • Typically not acted upon unless they address a compelling need and offer new and unique solutions • Sales Contract • All elements of the transaction are determined at the time of the sale (buying a car) • Includes Mutual Assent, Consideration, capacity to contract and legal purpose

  10. Other Contract Devices • Framework Pricing Agreement • Includes all elements of the contract including a method for calculating the price using an index, formula etc. • Performance Based Contract • Defines the outcome of the contract in terms of desired results • Single Source Negotiation • Contracting with single provider – non-competitive • Often requires seller to provide cost or pricing information to ensure price reasonableness • May be used for contract extensions or modifications or when only one credible source exists.

  11. Other Contract Devices • Gap Filler • Source of information used to determine proper course of action if contract does not address a key point • UCC is an example • Prequalification • Similar in some respects to the first stage in a two part sealed bid or proposal • Used to narrow the number of proposals to a manageable number by limiting competition to those who are judged able to perform. • Broad Area Announcement • Used (in R&D) to identify agencies interests to offerors • Technical proposals are solicited by issuing “Calls” against the BAA sometimes narrowed by “Interest Areas” Responses are often called “White Papers” • White papers are rank ordered by agency and the most promising are requested to propose.

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