14 Federal Contracting – Assignment 2: Develop a Procurement Strategy Author’s Name

14
Federal Contracting – Assignment 2: Develop a Procurement Strategy
Author’s Name
Institutional Affiliation
Course Number and Name
Instructor’s Name
Due Date
Program
Type of Procurement
Explain why this would be the best procurement strategy for this program
1.) Upgrading eight elevators
Negotiated procurement contract
An ideal procurement type for the program mentioned above is the negotiated procurement contract because it will allow the government department to have value for money. In negotiated contract, the procurement department or purchasing managers invites potential contractors or suppliers to bid for the contract (FAR, 2019, p.473). After this invitation, the procurement officer in a government agency can select the bidder that quotes the least price but delivers the highest value. Therefore, this will allow the procurement contract to serve the government agency’s best interest.
The negotiated procurement contract facilitates the competitive bidding process. Because the bidder with the least price quotation is likely to win the contract, the suppliers will charge reasonable prices to avoid losing the bid. The government agency can also shop for information about existing suppliers (FAR, 2019, p.1929). With adequate information about the suppliers, the purchasing officer can negotiate prices and delivery with the company that delivers maximum value. Hence, this will allow the government to have the ideal contract at the lowest cost.
Finally, negotiated procurement strategy is ideal for purchasing the eight elevators because it will allow the government to prequalify the suppliers based on their history of contract delivery. The suppliers that fulfill their promises are likely to win the contract. The government can also maintain its relationships with successful suppliers.
Type of Procurement
Explain why this would be the best procurement strategy for this program
2.) Water delivery service twice a month for the eight break rooms
Competitive Sealed Bid Contract
A sealed bid procurement contract is the most appropriate for a regular supply of similar items. In competitive sealed bidding, the government publicly solicits bids through an open process. The bidder that conforms to all material terms or conditions at the lowest price per the procurement needs wins the bid (FAR, 2019, p.62). The procurement team must maintain a longstanding relationship for recurrent expenditure on similar items. A long relationship with the supplier allows consistent and smooth delivery of materials. In addition, maintaining a good supplier provides the government department an opportunity to negotiate for the best rates in the market.
Another aspect of a competitive sealed bid is that it will allow the government to obtain the best value, including the lowest prices. In sealed bidding, the procurement department invites bidders to submit their bids. Once the bidders submit the bid, the procurement department maintains confidentiality to ensure that the bidders do not obtain unfair advantages over each other (FAR, 2019, p.481). This allows the government to maintain integrity in the bidding process. Furthermore, once the procurement receives all bids within the set duration, it selects the bids that bring the highest value at the lowest cost (FAR, 2019, p.66).
Program
Type of Procurement
Explain why this would be the best procurement strategy for this program
3.) Renovating a conference center
Two-Step Seal Bidding Procurement Contract
Two-step sealed bidding is the effective procurement strategy that fits the abovementioned situation. In the two-step bidding process, the government will manage to achieve material delivery and construction of the conference center (FAR, 2019, p.75). Construction projects are mainly two-step contracts. The first step is delivering the construction materials to the site, and the next step is the performance of the contraction activities. Therefore, this proved why the two-step sealed procurement method is ideal for this situation.
The competitive bidding procures, allowing the government to have the value for money by selecting the bidder that suits the requirements at the lowest price, also informs the decision for two-step bidding. Contracting officers will advertise the bid publicly to allow bidders to submit their bids in this bidding process. The competitive bidding process via public advertisement allows transparency and integrity (FAR, 2019, p.209). In addition, the contracting officers keep the bids confidential to ensure fairness among the competing bids. Once the bidders submit their requests, the contracting officers select the bidder that brings maximum value or enables the government to optimize the public interests.
The two-step bidding procurement is the option that will allow the contracting officers to meet government rules and regulations. Compliance with government laws and regulations is vital to overcome legal and regulatory costs.
Program
Type of Procurement
Explain why this would be the best procurement strategy for this program
4.) Purchasing standing desks for 100 offices
Sealed Bid
The ideal procurement strategy for the program above is the sealed bid because it will allow the contracting officer to meet the federal procurement procurements. In procuring high-value and many items, sealed bidding is the recommended procurement approach (FAR, 2019, p.75). The program involves purchasing large quantities of items (standing desks) for many offices.
Sealed bidding allows the competitive procurement approach, allowing the government to obtain a contract with the maximum value at the least cost (FAR, 2019, p.209). In addition, sealed bidding provides for the public scrutiny of the procurement practices because the government advertises the tenders publicly. Hence, this procurement approach will invite public scrutiny of the procurement activities.
Sealed bidding will also instill a sense of fairness because all bidders will have a leveled playing field during their bidding. In addition, this will instill trust in public procurement activities. Trustworthiness in public procurement can build public confidence.
Program
Type of Procurement
Explain why this would be the best procurement strategy for this program
5.) Purchasing a new virtual conferencing system
Negotiated Procurement Contract
The negotiated contract is the procurement approach this program will take because it will allow the federal contracting officers to negotiate the contract across various technology suppliers (FAR, 2019, p.473). Undoubtedly, there are dozens of technology companies offering virtual conferencing systems. Before purchasing or negotiating for this virtual conferencing system, the contracting officer can shop for information from online sites such as search engines. The information shopped will allow the purchasing officer to compare and contrast different technology vendors. Upon comparison, the procurement officer can pick the supplier that will maximize value based on various considerations, including functionality, costs, user-friendliness, compatibility, and versatility.
After picking the vendor, the procurement officer at the federal department can negotiate and bargain on the prices. Such bargaining will allow the public to obtain the best value for money. Moreover, this procurement option is the easiest approach when procuring technology items because most technology vendors have publicly disclosed robust information about products or solutions they offer (FAR, 2019, p.473). Hence, it is easy for contracting to determine the vendor that suits procurement needs, even without inviting the vendors to a contract. Therefore, this shows that sealed contracting or other alternatives are unnecessary.
Program
Type of Procurement
Explain why this would be the best procurement strategy for this program
6.) Purchasing 85 Iphones for remote employees
Negotiated Procurement Contract
Negotiated contacting option is the most suitable for the situation revealed in the above program (FAR, 2019, p.473). The government requires specific technology gadgets (iPhones). Since one manufacturer (supplier) of the technology gadgets (iPhones) desired, negotiation is the only ideal approach. Apple is the only manufacturer of iPhones. Hence, the contracting officer should start negotiation with Apple. Because the government will be buying in bulk, it can bargain for discounts and ideal prices. Therefore, this will serve the best public interests through bargaining for the best prices.
Although the program will involve the purchase of large quantities of high-value items, the sealed bid contract will not apply because the government can source the items from the manufacturer (FAR, 2019, p.473). Furthermore, sourcing directly from the manufacturer instead of third-party sellers will allow the government to incur prices. Third-party sellers doubtlessly add a reasonable markup on the purchase price to reap the profits. Therefore, purchasing directly from the manufacturers will ensure the government incurs lower costs.
Finally, a negotiated contract will allow the government to cultivate a relationship with the supplier for mutual benefits, including sustained delivery of items at a discount when required (FAR, 2019, p.473). Furthermore, negotiated procurement will be in line with the federal requirements.
Reference
FAR. (2019). General Services Administration Department of Defense National Aeronautics and Space Administration. https://www.gao.gov/products/b-280535,b-280536