1.6 Contracting MethodsDon Shannon

Sealed Bidding Discussed in FAR Part 14

Solicitation is an “Invitation for Bid” (IFB)

IFB is publicly advertized either on FedBizOps or other method Public Bulletin Board etc.

Sealed bids commonly used for fixed price contracts awarded for Construction Purchase of commercial goods

Public Bid Opening

Award is almost always made without discussion (not to be confused with clarification)

Winner is low bidder

Two-Sep Sealed Bid Step 1 is solicitation for technical proposals

Proposals are solicited using a “Request for Technical Proposal” (RFTP) Proposals are evaluated to determine technical merit and to refine the

specifications. Selectees are considered in the “competitive zone”

Step 2 is a Sealed Bid based on the approved technical proposal(s) Participation limited to those who previously submitted an acceptable proposal Normal sealed bid procedures then used to select low bid.

Negotiation FAR Part 15

Used for both competitive and non-competitive proposals Negotiations conducted through “discussions”

Includes all contracts not awarded by sealed bidding regardless of whether negotiations actually took place.

Soliciting document is a Request for Proposal (RFP) or Request for Technical Proposal if a Two-Step process is to be used.

Simplified Acquisitions Relaxed rules for the purchase of commodities

Usually low dollar value (150k)

Less paperwork .. more like a purchase order

Often bought with Government credit card

Federal Supply Schedule Example is GSA purchasing schedules

Allow the pre-negotiation of terms and conditions (ordering agreement)

Orders are placed against these agreements for purchase Primary means is eBuy via GSA Advantage Credit card use is possible

Used extensively for commercial products and some Scientific and Engineering serrvices

Auctions Sales may be accomplished by “forward” auction such as ebay where high

bidder wins the item.

Purchases may be made among multiple sellers based on low price.

Electronic Commerce is key component

Typically accomplished using simplified acquisition procedures.

Solicitation Devices Request for Proposal (RFP) – Seller is asked to submit a proposal typically for a

negotiated procurement. Multi-part document with cost and technical content May be limited to a specific page length

Request for Quote (RFQ) Seller submits a document consisting of product information and cost. Documents submitted are NOT an offer but may be acted upon without further discussion

or negotiation Often used with GSA or Delivery Order contracts Government may issue an order based on the quote which must be accepted by the seller

to form a binding contract

Solicitation Devices Request for Information (RFI)

Sometimes used as part of Market Research to determine capabilities Often times lead to submittal of Statement of Capabilities as a response

Unsolicited Proposal Submitted by offeror without a solicitation (Cold-Call selling) Typically not acted upon unless they address a compelling need and offer new and unique

solutions

Sales Contract All elements of the transaction are determined at the time of the sale (buying a car) Includes Mutual Assent, Consideration, capacity to contract and legal purpose

Other Contract Devices Framework Pricing Agreement

Includes all elements of the contract including a method for calculating the price using an index, formula etc.

Performance Based Contract Defines the outcome of the contract in terms of desired results

Single Source Negotiation Contracting with single provider – non-competitive Often requires seller to provide cost or pricing information to ensure price reasonableness May be used for contract extensions or modifications or when only one credible source

exists.

Other Contract Devices Gap Filler

Source of information used to determine proper course of action if contract does not address a key point UCC is an example

Prequalification Similar in some respects to the first stage in a two part sealed bid or proposal Used to narrow the number of proposals to a manageable number by limiting competition to those who

are judged able to perform.

Broad Area Announcement Used (in R&D) to identify agencies interests to offerors Technical proposals are solicited by issuing “Calls” against the BAA sometimes narrowed by “Interest

Areas” Responses are often called “White Papers” White papers are rank ordered by agency and the most promising are requested to propose.