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How To Sell To The Feds
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Article 7: Inside Scoop: the Federal Acquisition Regulation
The federal government has standardized procedures for buying. The procedures are specified in the Federal Acquisition Regulation (FAR) and are used by all federal agencies.
FAR dictates procedures for every step of purchasing. Examine FAR at www.arnet.gov/far.
The government buys in several ways. It can use simplified acquisition procedures, sealed bidding, contracts by negotiation or consolidated purchasing.
Agencies use simplified procedures for soliciting and evaluating bids up to $100,000. But at www.FedBizOpps.gov, agencies are still required to advertise all plans to buy anything costing more than $25,000. These procedures have fewer details and less documentation.
New legislation requires all federal purchases of more than $2,500 but less than $100,000 to be reserved for small businesses. The exception is if a contracting officer cannot get two or more small businesses to offer competitive prices, quality and delivery.
Government purchases of individual items up to $2,500 or multiple items totaling no more than $2,500 are micro-purchases. These can be made without competitive quotes, but are no longer reserved for small businesses. Agencies can now make micro-purchases with a government credit card.
Competitive contracts are issued after sealed bids when requirements are clear, accurate and complete. An Invitation For Bid (IFB) is used and includes a description of the product or service, instructions for bid preparation, conditions for purchase, packaging, delivery, shipping, payment, contract clauses and the bid deadline.
Bids are opened in public at the purchasing office, read aloud and recorded. The low bidder “determined to be responsive” is awarded the contract.
In some cases when a contract exceeds $100,000 and calls for a highly technical product or service, the government may issue a Request for Proposal (RFP). Typically RFPs request product or service proposals from contractors on how they intend to carry out the request, and its price. RFPs can be subject to negotiation.
The government sometimes researches purchases by issuing Request for Quotations (RFQ). Responses are not considered offers and cannot be accepted by the government as binding contracts.
Government reform has increased the importance of the best value concept, which means that rather than awarding strictly to the lowest bidder, the government can award based on what best satisfies its needs at a slightly higher price.
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How To Sell To The Feds
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