Solicitation of Porposals and Information Paper

Federal Contract
There are two basic methods for providing goods and services to the federal government. One is through existing and required sources of supply where the other is an open market acquisition using simplified acquisition techniques or formal contracting methods (14 FAH-2 H-200 Acquisition Basics, 2011). The simplified acquisition method falls into the threshold of $3,000 to $150,000 category and is done with procedures such as, imprest fund, purchase card, purchase orders, or blanket-purchase agreements. They follow the procedural guidelines of the Federal Acquisition Regulation Part 13 (FAR13).
When a contract, like $500,000, exceeds the threshold, the sealed bidding or negotiation methods must be used. The Sealed Bidding Process (IFB) is characterized by competitive bids that are sealed by the respective vendors, only opened by government officials in a public ceremony, and awarded to the lowest-price acceptable bidder. Sealed bids are considered when time permits the solicitation, submission and evaluation is appropriate, awards can made on the basis of price and other related factors, and there is a reasonable expectation of more than one bid. The sealed bidding process prohibits discussions after the bid opening ceremony.
The Negotiation Procurement Process (RFP) refers to any acquisition that is not sealed and does not meet the prerequisites of the Sealed Bidding Process. Negotiation requires the technical proposals and the price proposals to be packaged separately. The contracting officer may hold negotiations to discuss any deficiencies in the proposals and request revisions. The award is offered to the bid that gives the government the highest advantage or value. The major feature of negotiation is on technical aspects, not just the price. The negotiation method has the advantage of being able to discuss any deficiencies and answer questions that arise from bids not being very clear as to what they are really wanting in the process.
The Uniform Contract Format comes in four parts (Subpart 15.2-Solicitation and Receipt of Porposals and Information). Part I, the Standard Form (SF) 33 states the detailed information of the bid. Part II is the contract clauses that are department specific. The contract clauses are specific to the department putting out the bid. Part III lists documents, exhibits, and other attachments pertaining to the bid. Part IV is broken into three sections. Section K (a) states the representations, certifications, license, and other statements the bidders will be required to obtain. Section L (b) gives instructions, conditions, and notices to bidders and respondents. Bidders may be required to submit their proposals and information in specific formats or severable parts that can be separated for evaluation. And, Section M (c) gives evaluation factors that pertain to the award.
There are issues in the administration and management of federal contracts (Contract Administration Issues, 2011). Insurance is required to protect workers and for public liability. The job has to meet governmental inspection, including time, costs, quality, and statutory requirements, including safety requirements. There can be variations due to correction of errors or omissions in the contract documents. Site or building conditions may be different than described in the contract. Changes may also be requested by the government department. The contract may not state clear instructions, which can cause discrepancies, such as material amounts allotted to the job. Changes in authority can also cause discrepancies. Provisional sums for materials and labor may not be sufficient, or can be excessive for the job while the contractor has to account and make sure all funds are used properly. Weather conditions, for example, may affect the expected date of completion, causing a delay in meeting the schedule. Liability can exist in defects. Warranties on parts can be voided if a contractor is not careful.
Bibliography
14 FAH-2 H-200 Acquisition Basics. (2011, June 06). Retrieved from U.S. Department of State Foreign Affairs: http://www.state.gov/documents/organizations/89066.pdf
Contract Administration Issues. (2011, May 16). Retrieved from Victorian Government Health Information: http://www.capital.dhs.vic.gov.au/capdev/ProjectDelivery/Construction/ContractAdministration/ContractAdministrationIssues/
Subpart 15.2-Solicitation and Receipt of Porposals and Information. (n.d.). Retrieved from U.S. Government: http://www.acquisition.gov/for/current/html/Subpart 15_2.html