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Government buyers have a variety of acquisition tools available to procure the goods and services they need. Which tool they use depends on the nature of the product or service, the anticipated dollar value, how quickly it is needed, and other factors. The Federal Acquisition Streamlining Act of 1994 (FASA) simplifies government procurement procedures and encourages federal agencies to behave more like commercial enterprises when making purchases under $100,000. Micro-purchases Purchases of individual items under $3,000 or multiple items with an aggregate value under $3,000 are considered micro-purchases. Micro-purchases do not require competitive bids or quotes, and agencies can simply pay using a Government Purchase Card (credit card), without the involvement of a procurement officer. Virtually any type of product or service that does not exceed $3,000 ($2,000 for construction) can be ordered and purchased this way. Purchases valued over $3,000 may not be split for the sole purpose of bringing individual payments under the $3,000 limit. Government Purchase Cards can be used to pay for purchases over the $3,000 threshold, but such purchases must go through a contract process first. Some agencies will provide vendors a list of individuals within the agency holding a Government Purchase Card. Contact the agency's procurement office or visit its website to obtain the list, if available.
Sealed bidding When the requirements for a purchase are clearly known and able to be specified, the agencies typically use a sealed bid procurement process. The program office or end user specifies the requirement in detail and forwards it to the procurement office. The procurement office identifies potential bidders and issues an Invitation for Bid (IFB). Potential bidders are identified through a variety of means including the agency's own bidder list or a search of CCR. If the anticipated value of the award is $25,000 or more, the agency must also post notice of the invitation to http://www.FedBizOpps.gov Sealed bids are received by the procurement office and opened in public on the day specified in the invitation. Bids are evaluated according to the criteria set forth in the solicitation. Usually the contract is awarded to the lowest bidder fulfilling the requirements of the invitation. Other criteria, however, may be used in certain circumstances. These include the experience of the bidder, past performance, environmental considerations, timeliness of delivery, and technical capabilities. The procurement officer awarding the contract is responsible for determining which bid represents the "best value" in satisfying the government's needs. Criteria other than price will be clearly stated in the invitation. Requests for Proposal (RFP) Many government requirements are defined by their objectives, rather than the products or services used to achieve the objectives. It is difficult to specify the products or services required to achieve the objective, and it is up to potential contractors to propose the best way to do it. Technically complex work, scientific research, and management consulting are examples of this type of requirement. In such cases, the agency will issue an RFP rather than an Invitation for Bid. The RFP will describe in general terms the products or services needed and invite prospective contractors to submit proposals describing how they would meet the need, including an estimated price. Submitted proposals are subject to negotiation before a contract is awarded. Contracts resulting from an RFP are typically awarded on a "best value" basis. RFPs with anticipated values over $25,000 are posted at FedBizOpps.gov for review by prospective contractors. Sole-source Contracts From time to time the government will have a need for a product or service for which there is reasonably believed to be only one qualified supplier. Patents, other intellectual property, proprietary processes, geographic location, unique capabilities or scale of operations, or the ability to perform within a required timeframe can all be used as justification to award a contract on a sole-source basis. Sole-source contracts are negotiated directly without a competitive bid process. Even if an agency intends to award a sole-source contract, it must still post public notice of its intent at FedBizOpps.gov when the value is expected to exceed $25,000. Multiple Award Contracts There are certain products and services that are used by most government agencies - computers, copier maintenance and telecommunications for example. For these items, the government uses consolidated contracting methods to negotiate better prices and reduce administrative costs. The best-known example of such consolidated contracting is the General Services Administration's Multiple Award Schedule (also known as the Federal Supply/Service Schedule or simply GSA Schedule). Under the Multiple Award Schedule program, the GSA negotiates prices and terms with the vendor and awards the contract. This contract does not involve a sale to GSA. Rather, it creates an agreement whereby any participating government agency (including GSA) may purchase the products or services covered by the contract according to the prices and terms specified. The result is a win-win for the vendor and for its customers within the federal government. Government buyers like to buy off the GSA Schedule and similar consolidated purchasing vehicles because it is fast and requires a minimum of paperwork. The GSA has already done the negotiation and ensured that the vendor is qualified and the prices are fair. For vendors, the benefits are obvious. Through a single contract, they can potentially reach buyers in virtually every department and agency. What's more, the GSA offers several programs to help vendors market their offerings on GSA Schedule to government buyers. Information about how to become a GSA Schedule vendor is available at the GSA website, http://www.gsa.gov Next: Subcontracting |
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