...Sealed Bidding vs. Competitive Proposals Compare and Contrast Charles E. Andrews Professor Stephen Bartorillo BUS315 April 28th, 2013 Sealed Bidding vs. Competitive Proposals C. Andrews Sealed bidding is a “process by which government needs are made known by a solicitation called an Invitation for Bids (IFB)”; whereas, competitive proposals is a “process by which the government needs are made known by a solicitation called a Request for Quotation (RFQ) or a Request for Proposals (RFP)” (Murphy, p17, 2009). With sealed bidding there is no negotiation for contractors, therefore the best proposal for the lowest possible price should be offered. Not only does the contractor have to propose the lowest possible offer, but the contractor must be considered responsive and responsible by the contracting officer. Responsive is noted to “have not taken exception to any material aspect of the specification, work statement, or other terms of the proposed contract”; while, responsible is noted to be deemed “capable of performing and meeting the terms stated in the IFB” (Murphy, p17, 2009). Since there is no negotiation with sealed bidding, and the contract is awarded to the lowest bidder who is deemed responsive and responsible, the contractor must be mindful of all of their expenses associated with completing the work to the government’s specifications, as there are no adjustments once the contract has been awarded. By the contractor fine tuning his skill of estimating his...
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...Sealed Bids vs. Competitive Proposals Strayer University Cost and Price Analysis – BUS 315 Sealed Bids vs. Competitive Proposals When the government has recognized a necessity for supply and services, they immediately conduct a market research, and find probable sources of supply. This information is then sent to the contracting officer for procurement. The contracting officer is solely responsible in determining if the procurement may be accomplished through sealed bidding or negotiation. Sealed bidding is the government method to make known of a need by a solicitation named Invitation for Bid (IFB). Negotiation as used in the acquisition process, means contracting through the use of competitive proposals and discussions, between the contracting officer and the contractor. These government solicitations for negotiation are called Request for Proposal (RFP). The solicitation process originates similar for sealed bids and competitive proposals. The contracting officer announces an IFB for sealed bids, and/or a RFP for a competitive proposal, in FedBizOpps. Most solicitations are accessible, and can be copied directly from the Internet. The contractor upon awareness of these solicitations replies by submitting a bid for the sealed bidding, and/or a proposal for the competitive proposal solicitation. Most contractors contemplate sealed bidding as the less pricey, fastest economical procurement method since no time is lost in negotiations. Bids are assessed with...
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...Assignment 1: Sealed Bids vs. Competitive Proposals Howard Dingle William La Salle BUS 315- Cost and Price Analysis 10-28-12 Abstract In order to compare and contrast Competitive Contracts and Sealed Bidding Contracts, I have to define each term. After defining the terms I have to explain which contract I think is the most valued contract alternative. Write a 1-2 page paper in which you compare and contrast sealed bidding and competitive proposals in terms of which are most advantageous to contractors. In order to do compare and contrast analysis of seal bidding contracts and competitive proposal contracts, I have to define each concept fully. After completing this task, then I can come to a decision in which I think which contract is the most suited to conduct business in my opinion. Sealed bid is the document enclosed in a glued (sealed) envelope and submitted in response to invitation-to-bid (ITB). Sealed bids received up to the deadline date are generally opened at a stated time and place (usually in the presence of anyone who may wish to be present) and evaluated for award of a contract. Competitive sealed bids are for purchases of items of tangible personal property; services and construction over $10,000 or $20,000 small purchase limits. Bids for construction contractors or heavy equipment purchases are good examples of a competitive sealed bid. Competitive Proposals is a procurement that meets the following criteria: 1. Is initiated by...
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...Contract Planning The Acquisition Environment The acquisition environment is influenced by each organization's mission support strategy, successful customer relationships, and core principles of decision making. This lesson provides you with an opportunity to guide your actions and to research and develop a strategy so you can recognize when your efforts support the mission. In this lesson, you will cite key components of successful customer relationships and describe how your office achieves success through the key relationship criteria it exhibits and apply these key components by choosing appropriate methods of dealing with your customers in a practice scenario. This lesson will help you build a foundation for good decision making based on the core principles of power and responsibility and give an opportunity to apply the Seven-step Path to Better Decisions in a practice scenario. Mission Support Strategy The mission support strategy is a systematic plan of action that aligns the organization's activities with its mission and objectives. The Terminal Learning Objective is: Given a customer need, reinforce areas of mutual interest within an acquisition environment (requiring activity, contractor, contracting office, others). The Enabling Learning Objectives are: * Apply the factors in development of your mission support strategy. * Apply the key characteristics for successful customer relationships. * Apply the Seven-step Path to Better Decisions...
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...materials are delivered in time to meet production schedules and that they are at the best price to maximize profit margins. The state of Kentucky uses two methods to manage their contracts. These processes are: the competitive sealed bidding where by the bid is opened publicly at the time and place of solicitation and the competitive negotiation by RFP of which they are not opened publicly. E-Procurement.gov. helps the government and the citizens realize the vision of growth via profitable B2B e-commerce. The proven platform used by the largest companies in India and the world, it enables trade between companies of different sizes, platforms and locations.To this end,eProcurement.gov.in will provide services like eProcurement, eTendering, eSelling and eAuctions. E-procurement Auction Services offers government departments easy-to-use, web-based solutions for conducting dynamic exchanges in an on-line environment. It provides real-time bidding solutions for buyers and sellers as control, and simplicity to corporate procurement and liquidation processes. The state of Kentucky uses two methods to manage their contracts. These processes are: the competitive sealed bidding where by the bid is opened publicly at the time and place of solicitation and the competitive negotiation by RFP of which they are not opened publicly. A general standard solicitation processes would include; requisitioning, public solicitation, receipt of responses, evaluation and contract award. | ...
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...MATTHIAS HILD* The Google IPO initial public offerings (IPOs) since Netscape's public offering in 1995.' Bullish investors believed Google could set off a string of successful IPOs and put an end to a fouryear lull in technology offerings. 2 Executives at Google faced several questions in the following months, beginning with whether or not to sell shares to the public market.' If they made the decision to take the company public, what options did Google have for selling those shares? Was the traditional form of book-building through an investment bank necessarily the best course of action? As large investment banks were courting Google's potentially enormous business, management had to evaluate the different options available for a company ready to move forward. Ultimately, Google chose to sell its stock through W.R. Hambrecht + Co.'s OpenIPO, which was modeled on auction-based offering formats in France, Japan and elsewhere. In 2004, Hambrecht's track record of success was mixed at best and even today the future of this IPO format in the United States is far from certain. IN THE SPRING OF 2004, GOOGLE WAS ONE OF THE MOST TALKED-ABOUT I. HISTORY AND BUSINESS MODEL In 1995, Larry Page, 24, and Sergey Brin, 23, first met as Stanford University computer science graduate students.4 Their company Web site describes that first encounter as a clash of personalities that eventually led to their now-famous creative solution for retrieving relevant information from large sets of data...
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...capital investment and carried low debt levels. Its problems—a declining return on assets and falling inventory turnover—appeared fixable. And it offered significant break-up value. Valuing RJR's equity at the time of the LBO requires detailed knowledge of the company's operations and extensive number crunching. The analysis is obviously quite dependent on the assumptions made about cash flow in the post-LBO period, as well as the long-term, steady-state growth rate. Nevertheless, the figures suggest that, even assuming a high, 5 per cent level of steady-state growth, RJR's cash flows would have to grow at a rate of at least 18 per cent per year to justify KKR's bid of $109 per share. RJR's board played a prominent role in the bidding process. By setting the bidding rules, the board successfully minimized the possibility of collusion and thus increased potential gains to stakeholders. The decision to accept KKR's offer over RJR management's higher bid appears to reflect the board's concern for employees and existing shareholders. OTH THE POPULAR press and the academic press have devoted extensive coverage to leveraged buyouts, but neither has devoted much attention to analyzing the features of a specific LBO.^ The RJR Nabisco B move, introducing four brands simultaneously. The strategy worked well. Among the new brands was Camel, a name brand that changed the company's history. In 1914, RJR sold 425 million Camel cigarettes; seven years later it transaction warrants particular...
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...Guidelines for compliance to Quality requirements of eProcurement Systems STQC Directorate Department of Information Technology, Ministry of Communications & Information Technology, Electronics Niketan, 6 CGO Complex, Lodhi Road, New Delhi – 110003 Dt: 31.08.2011 CONTENTS 1.0 2.0 3.0 4.0 5.0 Specific requirements of eProcurement System Requirements of Conformity Operating Models of eProcurement System Introduction Testing framework for Quality and Security Characteristics 6.0 Evaluation & Certification process Annexures Annexure‐I : Risks of eProcurement Systems and related ISO 27001 controls Annexure‐II : Checklist for eSecurity Compliance (including CVC Guidelines) Annexure‐III : Checklist for compliance to GOI procurement procedures (GFR) Annexure‐IV : Checklist for legal compliance (IT Act – Amendment 2008) Annexure‐V : Definitions and Reference Documents Reference documents: 1. eTendering Process 2. eTendering Glossary 3. eProcurement Integrity Matrix 4. OWASP (Open Web Application Security Project) Top10 Application Security Risks‐ 2010 5. Business requirements specification‐ cross industry e‐Tendering process (Source CWA 15666) Forms & Templates: Template I : Template for defining Usability Requirements Specifications of the Software product Template II : Template for Performance Specification ...
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...Shelly Irwin MKT 376 Exam #1 Study Guide Chapter 1 1. Business marketing compared to consumer marketing: the nature of the customer and how that customer uses the product. In business the customers are organizations (businesses, government, institutions). They differ in: nature of their markets, market demand, buyer behavior, buyer-seller relationship, environmental influences (competition, political, legal) and market strategy 2. Value: economic, technical, service, and social benefits received by customer firm in exchange for price paid for a product offering. Customer value proposition: captures particular set of benefits that a supplier offers to advance performance of customer’s organizations. 3. Business marketing and consumer-goods marketing are different. Even though they share a common body of knowledge and principles and theory. They vary in that: business buyers and markets function very differently from consumer markets. 4. Supply chain management in business marketing: technique of linking a manufacturer’s operation with suppliers, key intermediaries and customers to enhance efficiencies and effectiveness. The internet is playing an extensive role by allowing joint planning and execution in real time. 5. Marketing’s Cross-Functional Relationships: professional business marketers act as an integrator between various functional areas within the company. Functional areas include: manufacturing, research and development, customer service, accounting...
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...CH. 6: STRATEGY KEY STRATEGY ELEMENTS 1) Time (deadlines) 80/20 rule (Pareto’s law) often applies in negotiations. 80% of the deal getting done in the last 20% of the time spent in bargaining. If you have a firm deadline, use one of 3 strategies… 1) Without revealing your deadline, work to reach a settlement well in advance 2) Declare an earlier “deadline” before your real deadline 3) Question negotiators on the other side about their deadline – and if you find out their deadline is before yours, agree to it and work to meet it. If it’s a deadline for both sides, then neither has an advantage BOX 6.1: Use Time to Your Advantage (p. 142) 2) Info Called the “The Heart of Negotiations” because it shapes our appraisal of reality, our negotiation strategy, our BATNA, our expectations of what can be achieved and the outcome of a negotiation. Often, more info discovered both before and during a negotiation process makes you a better negotiator. The party that has more and better info is more likely to negotiate a better outcome. So, why do people fail to get info? Several reasons… 1) People regard a negotiation encounter as a limited or one-time event and simply fail to anticipate that they will need info until they are heavily involved in negotiations. 2) Novice negotiators believe the process doesn’t start until they the other party face-to-face and don’t prepare...
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...[pic] Student Guide for Performance Based Service Acquisition And The Seven Step Process (ACQ 265) Nov 2009 Table of Contents UNIT 1 Introduction UNIT 2 Form the Team, Review Current Strategy, Market Research Step 1: Form the Team Step 2: Review the Current Strategy Step 3: Market Research UNIT 3 An Industry Perspective: Approaching an Acquisition UNIT 4 Requirements Definition Step 4: Requirements Definition UNIT 5 Develop your Sourcing Strategy Step 5: Sourcing Strategy UNIT 6 Execute the Strategy Step 6: Execute the Strategy UNIT 7 Performance Management Step 7: Manage Performance Appendices I Acronym List II Glossary | | | |Course Title |Performance Based Service Acquisition (ACQ 265) | | | | | | | |Lesson Title | Course Introduction | | ...
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...S O N SOUTH-W ES TE THO M RN MBA series in ’s Eco n o mi cs Managerial Economics A Problem Solving Approach Luke M. Froeb Vanderbilt University Brian T. McCann Purdue University Australia Brazil Canada Mexico Singapore Spain United Kingdom United States Managerial Economics: A Problem-Solving Approach Luke M. Froeb VP/Editorial Director: Jack W. Calhoun Editor-in-Chief: Alex von Rosenberg Sr. Acquisitions Editor: Mike Worls Sr. Content Project Manager: Cliff Kallemeyn Brian T. McCann Art Director: Michelle Kunkler Sr. First Print Buyer: Sandee Milewski Printer: West Group Eagan, MN Marketing Manager: Jennifer Garamy Marketing Coordinator: Courtney Wolstoncroft Technology Project Manager: Dana Cowden COPYRIGHT ª 2008 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and SouthWestern are trademarks used herein under license. Printed in the United States of America 1 2 3 4 5 09 08 07 06 ISBN-13: 978-0-324-35981-7 ISBN-10: 0-324-35981-0 ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon may be reproduced or used in any form or by any means—graphic, electronic, or mechanical, including photocopying, recording, taping, Web distribution or information storage and retrieval systems, or in any other manner—without the written permission of the publisher. For permission to use material from this text or product, submit a request online at http://www.thomsonrights...
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...MERGERS & ACQUISITIONS INTRODUCTION Why merge? Why sell? A division of a company might no longer fit into larger corp’s plans, so corp sells division Infighting between owners of corp. Sell and split proceeds Incompetent management or ownership Need money Business is declining (e.g. a buggywhip company) Industry-specific conditions Economies of scale BASIC DEFINITIONS: MERGER: Owners of separate, roughly equal sized firms pool their interests in a single firm. Surviving firm takes on the assets and liabilities of the selling firm. PURCHASE: Purchasing firm pays for all the assets or all the stock of the selling firm. Distinction between a purchase and a merger depends on the final position of the shareholders of the constituent firms. TAKEOVER: A stock purchase offer in which the acquiring firm buys a controlling block of stock in the target. This enables purchasers to elect the board of directors. Both hostile and friendly takeovers exist. FREEZE-OUTS (also SQUEEZE-OUTS or CASH-OUTS): Transactions that eliminate minority SH interests. HORIZONTAL MERGERS: Mergers between competitors. This may create monopolies. Government responds by enacting Sherman Act and Clayton Act VERTICAL MERGERS: Mergers between companies which operate at different phases of production (e.g. GM merger with Fisher Auto Body.) Vertical mergers prevents a company from being held up by a supplier or consumer of goods. LEVERAGED BUYOUTS (LBOs): A private...
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...THE ARMCHAIR ECONOMIST by Steven E. Landsburg Praise: "Witty economists are about as easy to find as anorexic mezzo-sopranos, natty mujahedeen, and cheerful Philadelphians. But Steven E. Landsburg...is one economist who fits the bill. In a wide-ranging, easily digested, unbelievably contrarian survey of everything from why popcorn at movie houses costs so much to why recycling may actually reduce the number of trees on the planet, the University of Rochester professor valiantly turns the discussion of vexing economic questions into an activity that ordinary people might enjoy." —JOE QUEENAN, The Wall Street Journal "The Armchair Economist is a wonderful little book, written by someone for whom English is a first (and beloved) language, and it contains not a single graph or equation...Landsburg presents fascinating concepts in a form easily accessible to noneconomists." —ERIK M. JENSEN, The Cleveland Plain Dealer "...enormous fun from its opening page...Landsburg has done something extraordinary: He has expounded basic economic principles with wit and verve." -DAN SELIGMAN, Fortune "An ingenious and highly original presentation of some central principles of economics for the proverbial Everyman. Its breezy tone conceals the subtlety of the analysis. Guaranteed to puncture some illusions and to make you think." —MILTON FRIEDMAN CONTENTS Introduction I. 1. 2. 3. 4. 5. WHAT LIFE IS ALL ABOUT The Power of Incentives: How Seat Belts Kill - 3 Rational Riddles: Why the Rolling Stones...
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...2 Value Chain Management The theoretical background is defined around the central term value chain. Chapter 2 presents research concepts to manage the value chain structured by their area of specialization either on supply, demand or values. Secondly, within an integrated framework, the results of the specialized disciplines are combined with the objective to manage sales and supply by values and volume. Value chain management is defined and positioned with respect to other authors’ definitions. A value chain management framework is established with a strategy process on the strategic level, a planning process on the tactical level and operations processes on the operational level. These management levels are detailed and interfaces between the levels are defined. Since the considered problem is a planning problem, the framework serves for structuring planning requirements as well as the model development in the following chapters. 2.1 Value Chain Value chain as a term was created by Porter (1985), pp. 33-40. A value chain “disaggregates a firm into its strategically relevant activities in order to understand the behavior of costs and the existing and potential sources of differentiation”. Porter’s value chain consists of a “set of activities that are performed to design, produce and market, deliver and support its product”. Porter distinguishes between • primary activities: inbound logistics, operations, outbound logistics, marketing and sales, service in the core value...
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