The largest volume of dollars expended by the federal government is made through the use of formal procedures for acquisitions above the $150,000 simplified acquisition threshold. Formal procedures include sealed bidding where an Invitation for Bids is used and negotiations where a Request for Proposals is used. Under sealed bidding procedures, contractors submit bids that are opened publicly at a time and place designated by the purchasing agency. Award is made to the lowest responsible bidder. Contract negotiation is used when the government wishes to consider factors in addition to price when selecting the successful offeror. There is also a growing trend among federal agencies to negotiate long-term Multiple-Award Task Order contracts. These contracts frequently combine a wide range and large volume of work that had previously been the subject of individual contracts.
Resources Federal Contracting
The U.S. government is the largest customer in the world. It buys all types of products and services — in both large and small quantities — and it’s required by law to consider buying from small businesses. The government wants to buy from small businesses for several reasons, including: • To ensure that large businesses don’t “muscle out” small businesses • To gain access to the new ideas that small businesses provide • To support small businesses as engines of economic development and job creation • To offer opportunities to disadvantaged socio-economic groups How It Works The process of requesting proposals, evaluating bids, and awarding contracts should take place on a level playing field. The government should consider a bid from any qualified business. Set-aside and Sole-source Contracts Federal agencies must publicly list their contract opportunities. Some of these contracts are set aside exclusively for small businesses. In some cases, these so-called set-aside contracts might consist of certain types of tasks on larger contracts. In others, entire contracts may be reserved for small businesses. When a contract is set-aside for one specific small business, it’s called a sole-source contract. SBA’s Role in Contracting The SBA works with federal agencies in order to award 23 percent of prime government contract dollars to eligible small businesses. It also offers counseling and help to small business contractors.
SBA Contracting Guide
260
Made with FlippingBook - Online Brochure Maker