Sealed Bids vs. Competitive Proposals free essay sample

This paper will explore how Sealed Bidding and Competitive proposals compare against each other. In order to compare them one must understand how, when and why each topic is used. The primary source of federal procurement information and guidance is the Federal Acquisition Regulation, which consists of Parts 1-53 of Title 48 of the Code of Federal Regulations (CFR). FAR parts 14 and 15 explains in full detail Sealed Bidding and Competitive Proposals. This paper like the federal government will rely heavily on the FAR as a source document to help explain the details of this topic. Sealed Bidding VS. Competitive Proposals The federal acquisition process begins when an agency determine that a requirement is needed and requires that requirement to become procured. If the agency’s contracting officer determines that the appropriate method for procuring the goods or services is a contract, and the contract amount is greater than $25,000, then the agency posts a solicitation on the Federal Business Opportunities (FedBizOpps) website. A solicitation identifies what an agency wants to buy, provides instructions to future offerors, identifies the source selection method that will be used to evaluate offers, and includes a deadline for the submission of bids or proposals . Following the deadline for companies to submit their offers, agency personnel evaluate offerors’ submissions, using the source selection method and criteria described in the solicitation. Unless multiple suppliers or firms are needed, such as for a supply schedule, the agency awards a contract to one firm. Two of the most basic procurement methods that are used are sealed bids and competitive proposals. Sealed bids are usually used to procure high-end items with easy identifiable requirements. If this is the cases, the government agencies will look for the lowest price. The process for sealed bids is an Invitation for Bids (IFB) is advertised companies then prepare and submit their bids. Then a contracting official opens all sealed bids at an appointed time, reads them aloud and records them. Interested parties can view all the bids at this time, although they dont have access to the bidders financial data and other proprietary information. Then contract is awarded to the company with the lowest bid. The Contracting office will then make sure the lowest bidder has submitted their bids on time and in accordance with the instructions and requirements of the IFB. In addition to making sure they have fulfilled all requirements that were outlined in the IFB they also evaluate the bidders level of responsibility based on the companys means to fulfill all the contract requirements. Due to the fact this process is very rigorous this process is monitor to ensure sure strict rules are applied and followed. According to the FAR Contracting officers may request competitive proposals if sealed bids are not appropriate. Because of differences in areas such as law, regulations, and business practices, it is generally necessary to conduct discussions with offerors relative to proposed contracts to be made and performed outside the United States and its outlying areas. Therefore a request for proposals (RFP) is issued when the award will be based on more than price. The Contracting Office will issue an RFP containing all the information and instructions necessary for companies to prepare their proposals. Then companies prepare their proposals, paying close attention to specifications in the RFP, such as required work plan, staffing, and other forms and requirement that will have to be completed in order to be considered. After Contracting Office receive and review the proposals they will then select the â€Å"shortlisted companies†and deemed the â€Å"shortlisted companies†competitive enough to continue in the negotiation process. Negotiations will then begin between agency officials and the shortlisted companies. The companies may be invited to submit revised offers, taking into account the concerns raised during negotiations. The proposals are reviewed again. The contracting office will then look for the proposal that provides the best value. Before the contract is awarded, the government agency will determines whether the future contractor is responsible and has the facilities, quality-assurance processes, financial backing, and other requirements to complete the contract. The process between both sealed bid and competitive proposals are very similar when one look at the â€Å"big picture†. But there are some major differences between both, For example sealed bids and RFP competitive proposals are both used for larger purchases, but RFP competitive proposals contain way more detail than sealed bids. The RFP competitive proposals process allows businesses and contracting officials to bargain over details and depending on the size and complexity of the purchase, negotiations may be needed for clarification of price, schedule, technical requirements, and the type of contract before a contract is awarded unlike the sealed bid process. Bottom line. Both are competitive methods of awarding government contracts but overall the competitive proposals process seems more advantageous. Whenever there is an opportunity to negotiation this not only get a company with face time with that government agency this can be great opportunity to get other great products in front of the customer.